How to correctly determine the employee's income for the purposes of the Company Social Benefits Fund?

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Granting the employee services, benefits and subsidies from the Company Social Benefits Fund depends on the life, family and material situation of the employee. Therefore, the employer should take steps to examine the material situation of the employee, thanks to which it will be possible to determine the amount and scope of benefits received by the employee from the Company Social Benefits Fund. How to estimate an employee's income for the purposes of the Company Social Benefits Fund? Check!

Principles of granting benefits from the Company Social Benefits Fund

The provisions of the Act on the Company Social Benefits Fund do not regulate the principles of granting social benefits to eligible persons, nor do they provide for the principles of allocating funds for individual purposes. These rules should be established internally, by drawing up the company regulations, in which individual criteria will be defined.

Pursuant to the provisions of the Act on the Company Social Benefits Fund, granting benefits from the Company Social Benefits Fund depends on the life, family and financial situation of the person entitled to use the Company Social Benefits Fund.

Benefits from the fund should be granted to people who genuinely need support and assistance. You cannot allocate benefits equally to every employee, you should take into account the income per family member - not only per employee.

The basic criterion for granting benefits from the Company Social Benefits Fund is the social criterion set out in the Act, taking into account the family, material and personal situation of the employee. When creating the internal regulations regarding the Company Social Benefits Fund, additional criteria may be introduced, provided that they do not contradict those specified in the Act on the Company Social Benefits Fund.

Employee's income for the purposes of the Company Social Benefits Fund based on the employee's declaration

The Act on the Company Social Benefits Fund requires the employer to distribute funds from the fund based on social criteria. This means that the amount of benefits paid cannot be equal for each employee, therefore the employee's income should be determined for the purposes of the Social Benefits Fund.

The Act does not specify the method of obtaining the necessary information by the employer, therefore it is the employer who decides on the method of obtaining the data. The internal regulations of the Company Social Benefits Fund should include a provision on the form in which information should be provided to the employer for the purposes of granting funds from the Company Social Benefits Fund.

The most common form of assessing the life, family and material situation is the statement made by the employee. The employer may also request documents confirming the situation described in the statement, e.g. certificates of earnings of other family members, medical certificates depending on the presented situation.

The method of confirming the situation presented in the declaration should be clearly specified in the regulations of the Company Social Benefits Fund.

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The employee's income for the purposes of the Company Social Benefits Fund and the family situation should be presented on a document that will specify:

  • the number of people staying in a given household,
  • gross income per family member (including all sources),
  • marital status,
  • number of children,
  • the number of people with a certified disability,
  • the number of chronically ill people.

In a workplace where employees are in unmarried relationships, social assessment is usually used by determining the income per person in the household.

According to the definition of the Central Statistical Office, a household is a group of relatives or unrelated people who live together and support themselves together.

In connection with the above, the adoption of this definition in the regulations of the Company Social Benefits Fund allows the employee's income specified in the declaration for the purposes of the Company Social Benefits Fund to be the actual income of the employee who remains in a permanent informal relationship. The employee's own children and those of the cohabitant are also taken into account.

The template of the declaration should constitute an attachment to the regulations of the Company Social Benefits Fund. In the regulations of the Company Social Benefits Fund, you can specify what benefits employees and entitled persons may apply for.

The regulations of the Company Social Benefits Fund should define the method of determining the employee's income for the purposes of the Company Social Benefits Fund, i.e.

  • the period from which the family income should be assumed,
  • people whose income should be taken into account,
  • components of remuneration used in the calculation of income.

On the basis of the employee's declaration, the employer is able to determine the employee's income for the purposes of the Company Social Benefits Fund, the employee's life and financial situation and decide on granting him / her assistance from the Company Social Benefits Fund.