The Mandate Contract (umowa zlecenie) is one of the most popular civil law contracts in Poland. Undoubtedly, it is valued for its flexibility and lower formalism compared to an employment contract. Therefore, it is widely used for project-based or seasonal work. This guide is for you, whether you are a principal seeking support or a contractor taking on a new challenge. We will explain the characteristics of a mandate contract in Poland in 2025, the costs it generates, and the rights it imposes on each party.

What Is a Mandate Contract?

Essentially, a mandate contract is an agreement in which the contractor (zleceniobiorca) agrees to perform a specific legal (or factual) action for the principal (zleceniodawca). The key feature of this contract is the principle of due diligence. This is different from a contract for a specific work, which focuses on results.

Key features of a mandate contract:

• Lack of subordination: First and foremost, the contractor is not subject to the principal’s direction to the same extent as an employee. As a result, they have greater freedom in organizing their work.
• No specified place and time of work: The parties may, but are not required to, specify these elements.
• No employee rights: Moreover, the mandate contract is not regulated by the Labour Code, so contractors are not entitled to rights such as paid vacation.

The Mandate Contract and ZUS Contributions – Key Rules

This is the most complex and crucial aspect of this contract. Namely, the obligation to pay ZUS contributions depends on the contractor’s personal and professional situation.

The general rule: A mandate contract is subject to mandatory social security contributions (pension, disability, accident) and health insurance. Whereas, sickness insurance is voluntary.

Exception 1: Students under the age of 26

This is the most beneficial situation. If the contractor is a student and under 26 years old, then their mandate contract is completely exempt from ZUS contributions!

Exception 2: Overlapping insurance titles

Furthermore, there is an exception for overlapping insurance titles. If the contractor has another job with a salary of at least the minimum wage, their mandate contract has a different rule. In that case, they only pay the mandatory health insurance contribution.

How is a Mandate Contract Taxed?

Income from a mandate contract is taxed under the general rules, meaning according to the Progressive Tax Scale (12% and 32%). The advance income tax (PIT) payment is calculated and paid to the tax office monthly.

• Deductible costs: The contractor can apply a lump-sum deductible cost of 20% of the revenue. However, there is an exception. If they can document higher costs related to the mandate, they can deduct the actual amount.

The Principal’s Perspective

• Obligations:
  • Firstly, registering the contractor with ZUS within 7 days.
  • Next, calculating and remitting ZUS contributions and PIT advances monthly.
• Pros:
  • Undoubtedly, greater flexibility and lower costs than with an employment contract.
  • Additionally, simplicity in starting and ending the cooperation.
  • Of course, huge savings when hiring students.
• Cons:
  • Less control and loyalty from the contractor.
  • Unfortunately, there is a risk of the contract being reclassified as a “hidden” employment relationship.

The Contractor’s Perspective

• Rights and Obligations:
  • Above all, to perform the mandate with due diligence.
  • Also, the option to voluntarily sign up for sickness insurance.
• Pros:
  • For example, flexibility in determining the time and place of work.
  • The ability to work for multiple principals simultaneously.
• Cons:
  • On the other hand, no paid vacation or other employee benefits.
  • Lower job security.
  • Moreover, no paid sick leave unless they opt into voluntary sickness insurance.

Summary

In conclusion, the mandate contract is an extremely useful tool that offers flexibility not available with an employment contract. For the principal, it can be a way to optimize costs. In turn, for the contractor, it is an opportunity to gain experience. However, the key to success is understanding the rules regarding ZUS contributions and consciously exercising the rights and obligations it imposes on both parties.

In the next publication, you will find more information about the contract for a specific work.