Jubilee awards in private companies – exempt from ZUS contributions? Yes, but under certain conditions

On March 3, 2025, ZUS published an interpretation (DI/100000/43/120/2025) that may interest many business owners. It concerns the possibility of exempting jubilee awards paid to employees from ZUS social security contributions – provided that specific conditions are met.

Unlike in the public sector, where jubilee awards are mandatory, private employers may choose to introduce such benefits voluntarily. What matters most is how and how often they are granted.

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When is a jubilee award exempt from contributions?

According to the regulations, jubilee awards can be excluded from the calculation base for pension and disability insurance contributions if:

• they are granted no more frequently than once every 5 years,

• their granting is formally regulated in the company’s remuneration policy, Collective Labour Agreement, or another internal legal act.

  
  

The payout may occur earlier than 5 years from the previous award – what counts is not when the money is paid, but how often the employee is entitled to receive the award.

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What to avoid?

If the jubilee award is granted solely at the employer’s discretion (e.g., on a recognition basis), or if it is available more frequently than every 5 years, it will be treated as regular income from employment and subject to ZUS contributions.

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Summary

ZUS has confirmed that private-sector employers may pay jubilee awards without incurring contribution liabilities – but only if the terms for granting such awards are clearly defined in company regulations and if the periodicity is guaranteed (no more often than every 5 years).