What's new in labour law in 2021.
As usual, the beginning of the year brings many changes in the area of labour relations. What should you keep in mind when hiring employees?
Higher minimum wage
From 1 January 2021, the gross minimum wage will be PLN 2,800, which is an increase of PLN 200 compared to 2019, and the minimum hourly rate for contract work will be PLN 18.30 (an increase of PLN 1.30).
The higher minimum wage will also translate into an increase in the allowance for night work and the statutory limit on severance pay under the Act on Group Redundancies (up to PLN 42,000, subject to a reduction in the limit under Shield 4.0). The earnings threshold enabling the payment of a reduced basic contribution for an employee to the Employee Capital Plan (PPK) will also be higher. Higher remuneration, which is the basis for calculating social security contributions and personal income tax, will translate into an increase in public law charges.
Reporting of specific-task contracts
On 1 January, the obligation to report newly concluded specific-task contracts to the Social Insurance Institution (ZUS) will also come into force. The regulations impose a reporting obligation on contribution payers and natural persons concluding specific-task contracts with contractors.
However, the following contracts for specific work will not be subject to reporting: (i) those concluded with one's own employee; (ii) those performed for one's own employer but concluded with another entity; and (iii) those concluded, according to the interpretation of the Social Insurance Institution, with persons conducting business activity for the performance of services that fall within the scope of their business activity.
The RUD application form is still in the design stage and should be published by 7 January 2021 at the latest, which is the deadline for reporting specific-task contracts concluded at the beginning of that month.
Additional childcare allowance
The right to receive an additional childcare allowance per child has been extended until 17 January 2021. The additional childcare allowance is available to parents of children under 8 years of age and, in the case of a child's disability, also to parents and guardians of older children.
The allowance can be used: (i) in the event of the closure of a nursery, kindergarten, school or children's club due to COVID-19, which children or adults with disabilities attended; and (ii) in the event of the inability to provide care by a nursery, children's club, nursery, day care centre or other facility or entity employing day carers due to the temporary restriction of the operation of these facilities in connection with COVID-19. Depending on how the situation develops, the period of entitlement to the additional care allowance may be extended.
Increase in social security contributions
Despite recent media announcements, the rules for calculating contributions on contracts have not changed significantly. Contracts of mandate in the event of overlapping insurance titles and contracts for specific work will, as before, remain non-contributory as a rule. In 2021, the limit on pension and disability insurance contributions, amounting to thirty times the projected average monthly salary in the national economy, will also continue to apply. In 2021, this will amount to PLN 157,770 (an increase of PLN 960 compared to the previous year).
Self-employed persons will continue to pay social security contributions on the declared amount, not less than 60% of the projected average monthly salary. However, due to the increase in this amount compared to 2020, the monthly social security contributions for entrepreneurs who do not benefit from any relief (including voluntary sickness insurance contributions) will amount to approximately PLN 1,075.68 (an increase of PLN 83.38 compared to 2020) .
Next year, the health insurance contribution for these entrepreneurs is also expected to increase, but information on this will not be available until mid-January 2021.
Coefficient for calculating the holiday allowance
In 2021, this coefficient will be 21.
Contribution to the Company Social Benefits Fund
The new year will not bring any changes in the amount of the contribution per employee to the Company Social Benefits Fund (ZFŚS).
As a result of the ‘freezing’ of the basis for calculating this contribution (as in 2020, it will be calculated on the basis of the monthly remuneration in the national economy in the second half of 2018), in 2021 it will amount to PLN 1,550.26.