Self-employment

Self-employment – key information

Self-employment is a form of running a sole proprietorship and providing services to other entities, including former or current employers.

A self-employed person formally operates as an entrepreneur, is their own boss, settles taxes independently and pays ZUS contributions on their own.

In relations with contractors, the provisions of the Civil Code apply rather than the Labour Code, which means greater flexibility, but also less employee protection.

Key features of self-employment

• sole proprietorship as a form of B2B cooperation
• settlement based on invoices, rather than payroll and employment contracts
• greater flexibility regarding the place, time and manner of providing services, within the limits of the contract and the regulations on “disguised employment”
• no standard employee protection, such as statutory holiday entitlement, protection against termination or severance pay
• possibility of cooperating with multiple contractors at the same time

What is worth knowing?

A self-employed person may choose the form of taxation: tax scale, flat tax of 19% or lump-sum tax – depending on the type of activity and level of income.

ZUS contributions are paid independently, with the possibility of using start-up relief, preferential “small ZUS” and lump-sum health insurance contributions.

A self-employed person is not entitled to protection under the Labour Code, including statutory holiday entitlement, protection against termination or paid sick leave as in employment.

However, they may deduct business-related costs from revenue, such as:

• equipment
• software
• office
• commuting

A detailed calculation of net remuneration and the total cost of cooperation is facilitated by a salary calculator for B2B / self-employment.