The regulations introduced aim to limit the abuse of civil law contracts and protect people with the lowest remuneration.

The guaranteed minimum hourly rate has been extended to natural persons who do not conduct business activities, as well as the so-called ‘self-employed’, i.e. natural persons engaged in an economic activity who do not employ workers or do not conclude contracts with contractors and whose activity is registered in the Republic of Poland or in a country which is not a Member State of the European Union or a country of the European Economic Area.

The minimum hourly rate applies to the entire country. It is not subject to differentiation according to the region, industry, economic sector, professional group or skills.

To which contracts does the minimum hourly rate apply?

The minimum hourly rate applies to contracts of mandate (Article 734 of the Civil Code) and to contracts for the provision of services to which legal regulations on the contracts of mandate apply (Article 750 of the Civil Code).

Who is covered by the minimum hourly rate?

The guaranteed rate applies to natural persons who do not conduct business activity and to natural persons conducting sole proprietorship who personally perform the tasks resulting from the contract.

 The minimum hourly rate applies to self-employed persons conducting business activity registered in Poland or in a country that is not a Member State of the European Union or a country of the European Economic Area.

Who is obliged to apply the minimum hourly rate?

Entities required to meet the obligations arising from the minimum hourly rate: entrepreneurs and other organisational units (e.g. public institutions, government administration offices).

Since when has the minimum hourly rate been in place?

The statutory obligation to ensure the minimum hourly rate for certain civil law contracts came into force on 1 January 2017.

What is the level of the minimum hourly rate?

From July 1, 2024  the minimum hourly rate amounts to 28,10 PLN for each hour of the order or services provided (form January 1, 2025 it will amount to 30,50 PLN).

In the next years, the rate will be indexed at a rate corresponding to the increase in the employees’ minimum wage.

The level of the minimum hourly rate is the amount to which the contractor is entitled for each hour of assignment or services rendered, subject to taxation and social insurance contributions, according to the rules set out in the generally applicable regulations, as well as to possible deductions of claims and enforcement payments, taking into account Article 833 of the Code of Civil Procedure.

When determining the remuneration payable to the contractor, sums owed to the ordering party (mandator) or the service provider can be deducted from the remuneration payable to the contractor or the party to whom service is rendered.

In which contracts is the minimum hourly rate not applicable?

The obligation to provide a minimum hourly rate does not apply to all contracts of mandate or contracts for the provision of services.

This obligation does not apply to contracts concluded between natural persons who do not conduct business activity. The following contracts referred to in Articles 734 and 750 of the Civil Code have also been exempted from the application of the minimum hourly rate:

• if the place and time of the performance of the assignment or the provision of services are decided by the person accepting the assignment or providing the services and this person is entitled only to commission remuneration; the prerequisite for exemption from the obligation to provide the minimum hourly rate is therefore that the three conditions (time, place and commission) are met cumulatively;
• certain contracts for the provision of services concerning the 24‑hour care for a person or a group of persons provided on a continuous basis and in person.

When will the minimum hourly rate apply?

In order for the minimum hourly rate to apply, the parties do not have to express remuneration as an hourly rate in the contract.

The remuneration may be determined in the contract in any manner, e.g., at a monthly rate. It is important that the remuneration paid, expressed per hour of work performed, is not lower than the guaranteed minimum hourly rate applicable in a given year.

As a general rule, the question of calculating the number of hours during which the assignment is performed or service is rendered should be specified in the contract concluded by the parties. In the absence of such arrangements, it is the contractor or service provider who is required to submit, in writing, electronic or documentary information on the number of hours spent on the assignment or the provision of services.

Does the minimum hourly rate apply to contracts concluded orally?

The minimum hourly rate also applies to contracts concluded orally. In such a case, the ordering party should confirm to the contractor, before the start of the performance of the assignment or provision of services, arrangements related to the manner in which the number of hours is to be approved.

Are there any sanctions for non-compliance with the minimum hourly rate?

An ordering party who fails to comply with the legislation on the minimum hourly rate will be subject to a fine of between PLN 1 000 and PLN 30 000.

Is the minimum hourly rate subject to protection?

The guaranteed minimum hourly rate under civil law contracts, similarly to remuneration for work, is subject to special protection:

• payment must be made in cash and at regular intervals (in the case of contracts concluded for a period of more than one month: at least once a month), in accordance with the rule laid down in Article 112 of the Civil Code,
• it is prohibited to renounce the right to that remuneration and to transfer it to another person,
• remuneration is protected against enforcement in accordance with the rules set out in Article 833 of the Code of Civil Procedure.

Who will be covered by the minimum hourly rate if the assignment is performed by more than one person?

If more than one person accepts an assignment or undertakes to provide services jointly, the guaranteed minimum applies to each of them.