Lump-Sum Tax (Ryczałt) With an Employee in a Sole Proprietorship (JDG) in Poland (2026) — Is It Worth It?

On the lump-sum tax (ryczałt — a simplified Polish tax calculated as a percentage of revenue) you do not deduct costs. But an exception applies to employee salaries and their social insurance (ZUS). So the lump-sum tax with an employee can pay off — if employment costs are significant.

In this guide, I explain how the lump-sum tax works with an employee in a sole proprietorship (JDG — a Polish registered business run by one individual) in Poland in 2026.

Employee salary on the lump-sum tax

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On the lump-sum tax, you deduct from revenue:

• The employee's gross salary
• The employee's social insurance (ZUS) contributions (the employer's share)
• The employee's health insurance contribution (but this is withheld from their pay)

Example:

• Employee gross: 5,000 zł/month
• Employer's social insurance (ZUS): ~1,024 zł/month
• You deduct from revenue: 5,000 + 1,024 = 6,024 zł/month

This lowers the taxable base for the lump-sum tax.

Is it worth it?

Lump-sum tax 8.5% with an employee:

• Revenue: 200,000 zł
• Salary + social insurance: 72,288 zł/year (6,024 × 12)
• Tax base: 200,000 − 72,288 = 127,712 zł
• Lump-sum tax: 127,712 × 8.5% = 10,855 zł

Flat tax 19% with an employee:

• Revenue: 200,000 zł
• Costs (salary + social insurance + other): 100,000 zł
• Income: 100,000 zł
• Tax: 100,000 × 19% = 19,000 zł

The lump-sum tax wins (10,855 vs 19,000) — if other costs are low.

Pitfalls

1. Only salary and social insurance

On the lump-sum tax, you deduct only employee salary and social insurance (ZUS). Not other costs (rent, equipment).

2. Health-insurance threshold

At higher revenue, you enter a higher health-insurance-contribution tier (699.11 or 1,258.39 zł/month).

3. Employee Capital Plans (PPK) mandatory

With more than one employee — Employee Capital Plans (PPK) are mandatory (2% from the employer).

FAQ

On the lump-sum tax, can I deduct an employee's salary?

Yes. The gross salary and the employer's social insurance (ZUS) are deducted from revenue.

Is the lump-sum tax with an employee worth it?

Often yes — if other costs are low. With high costs (rent, equipment), the flat tax may be better.

Need help?

I run sole-proprietorship accounting with employees — lump-sum tax, social insurance (ZUS), Employee Capital Plans (PPK), salaries. From 49 zł + VAT per month.

Write to [email protected] or visit oxyok.com/pl.

Note: On the lump-sum tax, you deduct the employee's gross salary and social insurance from revenue. Other costs (rent, equipment) are not deductible. Before making a decision, consult an accountant.