Mandate vs employment contract: foreigner in Poland

An employment contract gives a foreigner paid leave, sick pay, overtime allowances and a notice period. A contract of mandate (umowa zlecenie) for a foreigner does not grant these rights by law, but it guarantees a minimum hourly rate. For a person with a work permit, the contract type must also match the legalization document.

Contract of mandate vs employment contract: comparison

Minimum hourly rate under a contract of mandate

The minimum hourly rate for a contract of mandate follows from articles 8a-8e of the act on minimum wage and is announced every year. It covers contracts of mandate and service contracts, regardless of the contractor's nationality. It does not cover, among others:

• contracts between two natural persons who do not run a business,
• contracts paid purely on commission, where the contractor decides the place and time of work,
• contracts for round-the-clock personal care.

The parties set out in the contract how the number of hours worked is confirmed: in writing, electronically or in documentary form. Documentation is kept for 3 years from the date the pay becomes due. When the number of hours on the statement does not match, report it to the coordinator.

ZUS and sickness contributions under each contract

Both contracts are registered with ZUS (Social Insurance Institution), and the contributions depend on the place of work, not nationality. Details are covered in the article on ZUS contributions for a foreign worker. Differences:

• under an employment contract, the employee finances social contributions totaling 13.71% of the base, including the sickness contribution,
• under a contract of mandate, the pension and disability contributions are mandatory, and the sickness contribution only if the contractor opts in,
• a contractor under 26 years of age with student status does not pay social or health contributions, even if they are a foreigner.

Under an employment contract, the employer pays for the first 33 days of sick leave in a year (14 days for an employee over 50), after which ZUS pays the benefit. The right to the benefit arises after 30 days of sickness insurance. Under a contract of mandate, the right to the benefit depends on opting into voluntary sickness insurance, and the waiting period is 90 days. The rules are described in the article on sick pay and benefit.

Difference in net pay

For the same gross amount, net pay usually differs between the two contracts. Under an employment contract, tax-deductible costs are a flat rate (PLN 250 per month, PLN 300 when commuting from outside the workplace's locality), while under a contract of mandate they amount to 20% of revenue after deducting contributions. On top of that comes the sickness contribution, which is often absent under a contract of mandate. A step-by-step calculation is shown in the article on net and gross pay.

When comparing contracts, consider not only the amount received, but also leave, sickness insurance and the rules for ending the cooperation.

Contract of mandate for a foreigner and a work permit

A work permit (zezwolenie na pracę) and a temporary residence and work permit describe the employment conditions: position, working time, pay and type of contract. The actual contract must match them. A change of contract type, position or pay may require the document to be changed, and the office decides this case by case. Before signing a new contract, compare it against the content of the permit.

A contract of mandate is a title to insurance with ZUS. Under a contract that does not give such a title (e.g. a contract for specific work), a foreigner must show other health insurance, as described in the article on contract for specific work and a foreigner's job. How the form of employment connects with residence is explained in the article on temporary residence card and work.

Ask for the contract in a version you understand, and for unclear provisions to be explained before signing.

Work through a temporary employment agency

A temporary worker employed by an agency under an employment contract earns leave at a rate of 2 days for each month remaining at the disposal of the user employer, and the agency settles unused leave with an equivalent payment. Before signing, ask the coordinator which contract type you will work under, and find current listings in job offers for employees.

Frequently asked questions

Which pays off more for a foreigner: a contract of mandate or an employment contract?

A contract of mandate often gives a higher amount received, because tax-deductible costs are calculated differently and there is usually no sickness contribution. An employment contract gives paid leave, pay during illness and a notice period. Which form is more favorable depends on the planned length of employment and personal circumstances.

Are there overtime allowances under a contract of mandate?

No, the Labor Code's 50% and 100% overtime allowances apply to an employment contract. Under a contract of mandate, every hour must be paid at least the minimum rate, and a higher rate for extra hours is due only if the contract provides for it.

Is leave paid under a contract of mandate?

The Labor Code does not give a contractor the right to annual leave. Paid days off under a contract of mandate are possible only if the parties include them in the contract.

This text is for information only and describes general regulations. It is not tax or legal advice.

This text describes the general rules. What you are entitled to depends on your type of contract: an employment contract (umowa o pracę) or a contract of mandate (umowa zlecenie). Your own contract and payslip are what count.