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08-11-2016
AS OF 1ST JANUARY 2017 MINIMAL HOURLY RATE FOR MANDATE CONTRACTS AND SOME CONTRACTS WITH SELF-EMPLOYED INDIVIDUALS

As of 1st  January 2017 contracts with mandatories (“umowa zlecenie”) and so-called self-employed individuals (“działalność gospodarcza”),  including the contracys concluded before 2017, will be subject to a minimum hourly rate regulations.

 

The new rules will apply to mandate and services contracts concluded as a service recipient by a company, an entrepreneur or other organizational unit with:

-         an individual who does not carry on business activity,

-         an individual who carries business activity registered in Poland or in a state not being a member of the EU or EEA, and who does not hire any employees or mandatories.

 

MAIN DUTIES OF THE PARTIES

 

·           the contract must  specify the amount of remuneration in such a way that the amount of remuneration for each hour of performance of the contract is not less than the minimum hourly wage (in 2017 - 13,00 PLN),

 

·           the contract must  specify a procedure of reporting a number of hours of performance of the contract – if there is no respective provisionsin the contract, mandatory or service provider must  deliver the information on a number of hours in a date preceding the remuneration payment,

 

·           remuneration in the amount resulting from the minimum hourly wage must be paidat least once a month (in case of contracts concluded for period longer than 1 month),

 

·           prohibition of renunciation of rights to remuneration resulting from minimal hourly rate and of transfer such rights to another person,

 

·           company/entrepreneur/other organizational unit to which works/services are rendered, mustkeep documents confirming a manner of reporting hours of performance of the contract and documents confirming number of hours of performance of the contract - for a period of 3 years from the day when remuneration is due.

 

The compliance with the regulations concerning the minimal hourly rate will be controlled by the National Labour Inspection.

 

EXEMPTIONS

 

New rules will not apply to, among others, mandate contracts and service contracts if mandatory/self-employed individual decides when and where the works/services are performed, and his/her remuneration is based exclusively on commission.

 

PENALTIES

 

Failure to fulfil the obligation of paying remuneration in the amount resulting fromthe minimum hourly wage will be subject to fine from 1.000 PLN to 30.000 PLN.

 

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Should  you be interested in obtaining further information, or would like to discuss the impact of the above changes please contact:

Anna Misiak tel. + 48 22 322 68 88

or your tax advisor from MDDP.

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