Obligation to establish a Company Social Benefits Fund

The Company Social Benefits Fund (ZFŚS) is a legal instrument that ensures employees have access to social support in the workplace. The obligation to establish a ZFŚS arises directly from the Act of March 4, 1994 on the Company Social Benefits Fund and applies to specific categories of employers, depending on employment levels and the legal form of business activity. In 2025, the basic contribution to the ZFŚS amounts to 2,723.40 PLN per employee working under normal conditions, which represents 37.5% of the average monthly salary in the national economy.​

Who is Obligated to Establish a ZFŚS

Employers Employing at Least 50 Employees

Employers who, as of January 1 of a given year, employ at least 50 employees in full-time equivalents have an absolute obligation to establish a Company Social Benefits Fund. This is a mandatory regulation that does not require any additional conditions or applications from employees or their representatives. Conversion to full-time equivalents is carried out according to precisely defined rules provided in implementing regulations to the Act.​

Employers Employing Between 20 and 49 Employees

In the case of employers who, as of January 1 of a given year, employ at least 20 but fewer than 50 employees in full-time equivalents, the obligation to establish a ZFŚS arises only upon request from a company trade union organization. The absence of such a request means that the employer is not obligated to establish the fund, although they may do so voluntarily.​

Budgetary Units and Municipal Budgetary Establishments

Employers operating as budgetary units and municipal budgetary establishments create the fund regardless of the number of employees. This is an exception to the general rule, which emphasizes the special position of the public sector in fulfilling social obligations toward employees. These units are required to establish a ZFŚS from the moment they begin operations.​

Employers Starting Operations During the Year

In the case of employers starting operations during the calendar year, the obligation to establish a ZFŚS is assessed based on employment levels as of January 1 of the following year. This means that a newly established entity does not have an obligation to create the fund in its first, partial year of operation, unless it makes such a decision voluntarily.​

Business Takeover and Continuation of the Obligation

In the case of a business transfer to an employer obligated to create the fund, the monetary resources, receivables, and liabilities of the transferring employer's fund are taken over by the fund of the acquiring employer. This maintains continuity in fulfilling social obligations toward transferred employees, which constitutes an important guarantee of their acquired rights. The ZFŚS Act does not specify a detailed procedure for transferring funds but indicates the principle of proportionality to the number of transferred employees.​

Legal Basis for the Obligation to Establish a ZFŚS

Act on the Company Social Benefits Fund

The legal foundation for the operation of Company Social Benefits Funds is the Act of March 4, 1994 on the Company Social Benefits Fund. The Act comprehensively regulates both the principles of fund creation and the method of its financing and use of accumulated resources. It has been amended multiple times, adapting regulations to the changing economic and social reality.​

Article 3 of the ZFŚS Act – Conditions for Establishing the Obligation

Article 3 of the ZFŚS Act precisely defines which employers are obligated to create the fund, indicating the criterion of the number of employed workers and the legal form of activity. This provision clearly distinguishes the situation of employers from the public and private sectors, imposing an unconditional obligation on the former. According to Article 3, paragraph 1c, employers employing between 20 and fewer than 50 employees create the fund upon request from a company trade union organization.​

Article 4 of the ZFŚS Act – Regulations Concerning Collective Agreements and Regulations

Article 4 of the ZFŚS Act specifies special cases in which employers do not have an obligation to create the fund, despite meeting employment criteria. This applies, among others, to public universities operating under higher education regulations and schools and institutions covered by the education system in relation to teachers subject to the Teachers' Charter provisions. This provision also serves as the basis for introducing provisions on not creating the fund in collective labor agreements and remuneration regulations.​

Article 5 of the ZFŚS Act – Principles for Determining Contributions

Article 5 of the ZFŚS Act regulates the method of creating the fund through an annual basic contribution calculated in relation to the average number of employees. The basic contribution amount is 37.5% of the average monthly salary in the national economy from the second half of the year preceding by two years the year of determining the contribution. In 2025, the maximum base for calculating the ZFŚS contribution is 7,262.39 PLN.​

Labor Code and Employer's Social Obligations

The Labor Code in Article 94, point 8, imposes on the employer the obligation to satisfy, within the limits of available resources, the social needs of employees. This provision constitutes a general basis for conducting social activities by employers, and the ZFŚS Act specifies how to fulfill this obligation. In the case of a business transfer, Article 23¹ of the Labor Code applies, which defines the principles of succession of employer rights and obligations.​

Resignation from Establishing a ZFŚS

Notice of Non-Establishment of ZFŚS by January 31

Employers employing fewer than 50 employees in full-time equivalents must formally notify their employees by January 31 of a given year about not establishing a ZFŚS and not paying vacation benefits. Failure to provide such notice on time may result in the obligation to establish the fund or pay vacation benefits to employees. This notice applies to the current year and, if necessary, must be renewed in subsequent calendar years.​

Collective Labor Agreement and Remuneration Regulations as Basis for Resignation

Employers covered by a collective labor agreement or obligated to issue remuneration regulations can resign from establishing a ZFŚS or paying vacation benefits by introducing appropriate provisions in these internal company documents. A provision in remuneration regulations regarding non-establishment of a ZFŚS must be agreed upon with the workforce representative; otherwise, it is ineffective. Resignation introduced in remuneration regulations takes effect after 2 weeks from the announcement of the new regulations.​

Vacation Benefits as an Alternative to ZFŚS

Employers who, as of January 1 of a given year, employ fewer than 50 employees in full-time equivalents may, instead of creating the fund, pay vacation benefits. Vacation benefits are due to an employee who, in a given calendar year, has used at least 14 consecutive calendar days of vacation leave. This is a simplified form of fulfilling the employer's social obligations, particularly convenient for smaller companies.​

ZFŚS Contributions and Their Calculation

Basic ZFŚS Contribution – Amount and Calculation Rules

In 2025, the basic ZFŚS contribution amounts to 2,723.40 PLN per employee working under normal conditions, which represents 37.5% of the average monthly salary in the national economy. For an employee working under special conditions or in work of a special nature within the meaning of bridge pension regulations, the contribution is 3,631.20 PLN (50% of average salary). For young workers, the contribution is differentiated depending on the year of training: in year I of training 363.12 PLN (5%), in year II of training 435.74 PLN (6%), in year III of training 508.37 PLN (7%).​

Increase in ZFŚS Contribution – When It Is Due

The basic contribution amount can be increased by 6.25% of the average monthly salary for each employed person for whom a significant or moderate degree of disability has been determined. Employers providing social care for retirees and pensioners can increase the fund by 6.25% of the average monthly salary for each retiree and pensioner entitled to this care. Employers who have established a company nursery or children's club can increase the fund by 7.5% of the average monthly salary, provided that the entire amount of this increase is allocated to operating the nursery or children's club.​

How to Calculate and Adjust ZFŚS Contributions

The ZFŚS contribution is calculated in relation to the average number of employees during the calendar year, taking into account the working time dimension of individual employees. Employers are required to transfer to the fund account by May 31 of a given year at least 75% of the basic contribution, with the remaining portion by September 30. Although the May 31 deadline may fall on a Saturday, it is not shifted to the previous or nearest working day.​

Financing and Transferring Funds to ZFŚS

Deadline for Transferring Funds to ZFŚS

Employers who are obligated to establish a ZFŚS in 2025 should transfer to the fund account by May 31, 2025, at least 75% of the basic contribution. The remaining portion of the contribution must be transferred by September 30 of the given year. Entities that, due to employment levels below 50 employees, decided to establish the fund voluntarily, can transfer funds for its operation at any other freely determined time and to any account.​

Sources of ZFŚS Funds

The fund is created from an annual basic contribution calculated in relation to the average number of employees. ZFŚS funds come mainly from collected mandatory contributions, the amount of which is specified by regulations and depends on the number of employed workers. The fund can also be supplemented by other sources, such as income from social activities, donations, or grants.​

ZFŚS Contribution – Employer's Obligations

The employer has an obligation to make contributions to the ZFŚS account within the deadlines specified in the Act, in accordance with the rules for settling the basic contribution. Failure to fulfill this obligation results in criminal liability and may result in sanctions imposed by the National Labor Inspectorate. The company trade union organization also has a claim for payment of mandatory contribution amounts to the ZFŚS, and in the opinion of the Supreme Court, this claim does not expire.​

Principles of ZFŚS Operation

ZFŚS Regulations – What They Should Contain

ZFŚS regulations are an internal document that precisely specifies the principles of fund operation and should define the rules for allocating fund resources for individual purposes and types of social activities. In the regulations, the employer should primarily regulate the criteria and procedure for granting social benefits, types of available benefits, groups of persons entitled to use the fund, and the method of collecting and distributing ZFŚS resources. These regulations should be developed in consultation with the company trade union organization or, in its absence, with the employee representative.​

Scope of Social Activities Financed from the Fund

Funds accumulated in the ZFŚS can be allocated only to social purposes specified in the Act and fund regulations. They are most commonly used for material assistance (emergency aid), recreation subsidies (holidays, children's camps), cultural and sports benefits (cinema tickets, theater, sports activities), and loans and targeted aid. Generally speaking, the purpose of ZFŚS is to finance strictly defined areas of social activity concerning recreation, material assistance, and other social needs of employees.​

Persons Entitled to Use ZFŚS

Persons entitled to use the ZFŚS include both employees of a specific workplace and their families, retirees and pensioners (former employees and their families), as well as other persons to whom the employer has granted the right to use social benefits in the regulations. The scope of entitled persons is broad and includes not only current employees but also their families and persons who have already ended employment at the given establishment.​

Social Criteria When Granting Benefits

In the scope of spending ZFŚS resources, the most important aspect is the social criterion. ZFŚS regulations must differentiate the rules for granting benefits from the fund, which means that introducing the principle of equal benefits for each employee regardless of income and financial position is prohibited. Granting preferential services and benefits and the amount of subsidy should take into account the life, family, and financial situation of the entitled person.​

Benefits from ZFŚS

Types of Social Benefits

Social benefits financed from the ZFŚS cover a wide range of forms of employee support. The most common include subsidies for organized recreation, including holidays, camps, and winter camps, co-financing stays at sanatorium treatment, emergency aid in difficult financial situations, tickets for cultural and sports events, and housing loans. Employers can also finance various forms of recreational and educational activities for employees and their families from the ZFŚS.​

ZFŚS Benefits Exempt from Tax

Benefits received by an employee in connection with financing social activities are exempt from income tax up to the amount of 1,000 PLN annually. Emergency aid is fully exempt from tax, and recreation subsidies also benefit from exemptions within specified limits. Benefits received by retirees or pensioners in connection with their previous employment relationship with the workplace are also exempt from income tax within a specified scope.​

Social Fund vs. Vacation Benefits

Vacation benefits constitute an alternative to establishing a ZFŚS for employers employing fewer than 50 employees. They are due to an employee who has used at least 14 consecutive calendar days of vacation leave in a given calendar year. The employer can choose whether to create a social fund, pay vacation benefits, or resign from both forms, notifying employees by January 31.​

Obligation to Establish ZFŚS in Different Sectors

Social Fund in the Public Sector

In the public sector, the obligation to establish a ZFŚS has a special character. Budgetary units and municipal budgetary establishments create the fund regardless of the number of employees, which distinguishes them from private employers. Unlike the private sector, in the budgetary sphere, establishing a ZFŚS is always mandatory and cannot be waived. These units also have the possibility of increasing the basic contribution for specific social purposes.​

Social Fund in the Private Sector

In the private sector, the obligation to establish a ZFŚS depends primarily on the number of employed workers. Employers employing at least 50 employees have an absolute obligation to establish the fund, while those employing between 20 and 49 employees create the fund only upon request from a company trade union organization. Private employers also have the option to resign from establishing the fund or paying vacation benefits by introducing appropriate provisions in a collective labor agreement or remuneration regulations.​

Consequences of Non-Compliance with the Obligation

Sanctions for Non-Compliance with the ZFŚS Act

For failing to fulfill the obligation to establish a ZFŚS, regulations provide for criminal sanctions in the form of a misdemeanor, which is punishable by a fine. According to Article 12a of the Act on the Company Social Benefits Fund, such action constitutes a misdemeanor, for which the National Labor Inspectorate can impose a fine of up to 2,000 PLN. Failure to establish the fund despite the existence of a legal obligation violates employee rights and may lead to further legal consequences.​

Role of Company Trade Union Organization

The company trade union organization supervises the employer's management of Company Social Benefits Fund resources. The trade union organization has a claim for payment of mandatory contribution amounts to the ZFŚS, and in the opinion of the Supreme Court, this claim does not expire. Social matters belong to the subject scope of the collective dispute procedure, which can be conducted only with the participation of a company trade union organization.​

Request to Establish ZFŚS

Employers employing between 20 and 49 employees establish a ZFŚS upon request from a company trade union organization. Such a request should be submitted in written form and constitutes the basis for the obligation to establish the fund for the given employer. After receiving such a request, the employer is obligated to establish the fund in accordance with statutory requirements.​

Agreeing on ZFŚS Regulations with Trade Union Organization

The rules and conditions for using services and benefits financed from the fund are determined by the employer in regulations agreed upon with the company trade union organization. The parties conduct negotiations on changes to ZFŚS regulations until reaching an agreement in this regard. If more than one trade union organization operates at the employer's and these organizations do not present a jointly agreed position within 30 days regarding the establishment of ZFŚS regulations, the employer independently makes decisions in these matters after considering separate positions of trade union organizations.​

FAQ

Does Every Employer Have to Establish a ZFŚS?

No, the obligation to establish a ZFŚS applies only to employers employing at least 50 employees in full-time equivalents as of January 1 of a given year. Exceptions are budgetary units and municipal budgetary establishments, which create the fund regardless of the number of employees. Employers employing between 20 and 49 employees create the fund only upon request from a company trade union organization.​

What Is the Amount of ZFŚS Contribution in 2025?

In 2025, the basic ZFŚS contribution amounts to 2,723.40 PLN per employee working under normal conditions, which represents 37.5% of the average monthly salary in the national economy. For employees working under special conditions, the contribution is 3,631.20 PLN (50% of average salary), and for young workers from 363.12 PLN to 508.37 PLN depending on the year of training.​

Can You Resign from Establishing a ZFŚS?

Employers employing fewer than 50 employees can resign from establishing a ZFŚS and paying vacation benefits, provided they notify employees by January 31 of a given year. Resignation can also be introduced through appropriate provisions in a collective labor agreement or remuneration regulations. Budgetary units and municipal budgetary establishments cannot resign from establishing the fund.​

What Are the Consequences of Not Establishing a ZFŚS by an Employer?

Failure to fulfill the obligation to establish a ZFŚS results in criminal liability in the form of a misdemeanor, which is punishable by a fine. The National Labor Inspectorate can impose a fine of up to 2,000 PLN. Additionally, the company trade union organization has a claim for payment of mandatory contribution amounts to the ZFŚS, which in the opinion of the Supreme Court does not expire.​

Who Can Use Benefits from ZFŚS?

Benefits from ZFŚS can be used by employees employed by a given employer, their families, retirees and pensioners (former employees and their families), as well as other persons to whom the employer has granted the right to use social benefits in the regulations. Benefits are granted based on a social criterion that takes into account the life, family, and financial situation of the entitled person.​

Summary

The obligation to establish a Company Social Benefits Fund constitutes an important element of the employee social protection system in Poland, ensuring their access to various forms of support in the workplace. Employers employing at least 50 employees, as well as budgetary units and municipal budgetary establishments regardless of employment size, must establish a ZFŚS in accordance with statutory requirements. The amount of contributions to the fund in 2025 has been precisely determined and ranges from 2,723.40 PLN for an employee under normal conditions to 3,631.20 PLN for an employee under special conditions. Employers have an obligation to transfer funds to the fund account within specified deadlines, and failure to fulfill this obligation may lead to criminal sanctions.​

Professional management of the Company Social Benefits Fund requires not only knowledge of current legal regulations but also appropriate technological tools that streamline all ZFŚS operations. Modern digital platforms enable process automation – from collecting employee income declarations, through online application submission and acceptance, to comprehensive fund budget management. The comprehensive ZFŚS management offered by the Nais platform guarantees 100% process digitization, compliance with regulations, and access to over 12,000 cultural, sports, and tourist offers compliant with the Act. The system also ensures integrations with all payroll and HR systems available on the market, including Teta, Symfonia, and SAP, which significantly facilitates HR department work and eliminates tedious administrative tasks. Thanks to implementation guarantees, dedicated customer service rated 5.0/5.0, and the ability to handle multi-company structures, modern technological solutions provide real support for companies of all sizes in fulfilling social obligations toward employees.

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