Deduction from sick pay and sickness benefit

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The deduction from the remuneration for work and the allowance should be determined and charged separately, in accordance with the regulations in force in this regard. Sickness, care or maternity allowance is subject to deductions according to the rules applicable to old-age pensions. The calculation of the amount of the deduction must therefore be made separately.

Deduction from wages

Before the employer goes to the wage deduction stage, he should first determine the net amount of the employee's salary. Then the employer is obliged to make deductions towards the maintenance arrears. The limit of maintenance deductions is currently a maximum of 3/5 of the salary after contributory and tax deductions. Subsequently, the employer deducts non-maintenance obligations, then the total amount of the deduction may not exceed 3/5 of the salary.

In accordance with the provisions of the Labor Code, the amount of remuneration for work is free of deductions in the amount of:

  • the minimum remuneration for work due to full-time employees after deduction of social security contributions, income tax advance payments and possible payments to the PPK - when deducting amounts other than alimony payments,
  • 75% of the minimum remuneration for work - with the deduction of cash advances granted to the employee,
  • 90% of the minimum remuneration for work - with the deduction of fines.

There is no specific amount free from deductions for maintenance deductions. The employer may make a deduction of up to 3/5 of the minimum remuneration for work towards maintenance obligations.

Sick pay is subject to the same protective standards for deductions as pay for work. To calculate the deduction, these benefits must be added together for the same month.

Deduction from sickness benefit

For sickness benefit, the limit of deduction for the satisfaction of enforced non-maintenance claims is 25% of the benefit amount (before deduction of personal income tax advance). The sickness benefit is free from enforcement for the above purposes, together with the costs and enforcement fees. In the past, the amounts free from enforcement from allowances constituted 50% of the lowest retirement pension (due to maintenance) and 75% of the lowest retirement pension (due to non-maintenance benefits), while from 2018 the method of determining the amounts free from enforcement from allowances has changed.Currently, these are monthly amounts, converted every year on the basis of pensions, announced by the President of the Social Insurance Institution no later than 7 working days before the next indexation date - i.e. before March 1 - and are binding until the end of February of the following year.

From March 1, 2020 to February 28, 2021, the amounts free from enforcement and deductions (assuming that the benefit is due for the entire month) are:

  • PLN 532.61 - when deducting amounts enforced under enforcement orders for the satisfaction of alimony claims, together with enforcement costs and fees, and maintenance payments deducted at the request of the creditor on the basis of the enforcement order submitted by him,
  • PLN 878.81 - when deducting amounts enforced under enforcement titles to cover debts other than alimony payments, together with enforcement costs and fees.

If you are entitled to sickness benefit only for a part of the month, then you must set an amount free of deductions in proportion to the number of days for which you are entitled to the benefit, which amounts to:

  • divide the applicable free amount by 30,
  • multiplying the result obtained by the number of days for which the benefit is paid.

The allowance deduction limit should be determined on the gross amount of the allowance, i.e. including the advance on income tax, but the deduction itself is made on the net amount of the allowance (after tax deduction), taking into account the amount of the free amount specified for a given type of liability. Deductions are not made if, after deducting the advance income tax, the amount of the allowance is lower than the amount free from deductions and enforcement.

So here the question arises, what should be the correct deduction from sick pay and sickness benefit? Start a free 30-day trial period with no strings attached!

Example 1.

The court bailiff seized the wages and sickness benefit of the employee on account of non-maintenance payments. The employee not covered by the tax relief without PIT was sick throughout April 2020 and this month received sick pay in the net amount of PLN 1,067.89 and sickness benefit in the net amount of PLN 788.39 (PLN 897.39 gross) for 13 days of incapacity to work.

The employer deducted against the attachment:

from sick pay PLN 0, according to the calculation:

  • net sick payPLN 1 067.89
  • maximum deduction: 3/5 × PLN 1 067.89= PLN 640.73,
  • free amount: PLN 1,920.62
  • available deduction amount PLN 0 (the free amount is higher than the net remuneration, i.e. PLN 1,920.62< PLN 1 067.89),

from sickness benefitPLN 224.35, according to the calculation:

  • maximum amount of the deduction: 25% x PLN 897.39 = PLN 224.35,
  • free amount: PLN 878.81 / 30 days = PLN 29.29; 29,29PLN × 13 days = PLN 380.77,
  • the amount of the allowance to be paid: PLN 897.39- PLN 897 x 17% = PLN 897.39- PLN 152.49 = PLN 744.90PLN 744.90 - PLN 224.35= PLN 520.55,

Amount remaining to be paid (PLN 520.56) is higher than the amountPLN 380.77 (amount free from deductions defined in a pro-rata manner)therefore a deduction may be made in the amount of PLN 224.35.

Deductions from wages and sickness benefits are made entirely differently. Therefore, when calculating the remuneration, it is worth paying attention to carefully calculating the limit amounts that can actually be transferred to satisfy claims.