The contract of mandate should be concluded in writing and signed by the Contractor and the Principal. You should get a copy for yourself.
What information should it contain?:
- kind of contract,
- the date of conclusion of the contract, the place and date of commencement and completion of the commission.
- Contractor and Principal data: If the Principal is a company, it is necessary to provide the company’s name, the address of its registered office, the entry number in the National Court Register (KRS), and the data of the person authorized to represent the company. The Contractor should provide his residence address, PESEL number, and identity document).
- Description of the tasks that the Contractor is obliged to perform. The contract should describe the scope of work in detail.
- The remuneration for the commissioned work. The minimum rate as of June 2023 is PLN 23.50 gross for 1 hour of work.
A contract of mandate can specify additional provisions, like for example paid days off or penalties. Not all of these provision are legitimate. Therefore, before signing, always read your contract and ask about issues that raise your doubts. You can also bargain your terms and conditions.
What contributions does the Principal pay on the contract of mandate?
The Principal must pay social security insurance to ZUS on behalf of the Contractor. Pension insurance contribution is mandatory too. Sickness insurance is not obligatory, and it is up to the you to pay it. It gives you right to paid sick leave.
When signing the contract of mandate, the Contractor also fills in some declarations. There you can consent to the payment of sickness contributions because when you are ill, you can go on paid sick leave.
The Principal has seven days from the commencement of the contract by the Contractor to report it to ZUS (insurance). If you have other job and you earn more than a minimum wage there, the principal is exempt from social contributions for you. The Principal only pays health contributions in that case.
Income tax advance payments (PIT)
The Principal must also pay an advance on income tax. In addition, as a payer of tax advances, he must also give the Contractor PIT-11 (Contractors and workers on employment contracts receive PIT-11).