What Are Voluntary Benefits?
Voluntary benefits are optional benefits that employees can choose according to their individual needs. They may be funded by the employer, paid for by the employee or financed jointly by both parties, often on more favourable terms than those available individually.
Common examples include private healthcare packages, group life insurance, sports cards, wellbeing services, meal programmes and additional financial protection.
Why Do Voluntary Benefits Matter?
Voluntary benefits allow organisations to expand their total rewards package while giving employees greater flexibility. They can support recruitment, engagement and retention by addressing different lifestyles, family situations and career stages.
Employers should select benefits based on genuine workforce needs rather than assumptions. Surveys and voice of the employee programmes can help HR teams understand which options provide the greatest value.
How Should Employers Design a Voluntary Benefits Programme?
- Assess employee needs— identify which benefits are relevant to different workforce groups.
- Offer meaningful choice— provide a balanced selection of health, financial and lifestyle benefits.
- Explain the conditions— communicate eligibility, costs, tax treatment and enrolment rules clearly.
- Protect employee data— limit the information shared with benefit providers to what is necessary.
- Review participation— monitor take-up rates and update the programme as employee needs change.
Voluntary benefits may be combined with situation-specific incentives, such as a relocation bonus for employees who move to take up a new position.
How Do Voluntary Benefits Work in Poland?
In Poland, voluntary benefits are generally known as benefity pozapłacowe. They are additional benefits offered alongside remuneration and should be distinguished from statutory employee rights, such as paid annual leave or sick pay.
The tax and social security treatment of a benefit depends on its type, funding method and applicable exemptions. Employers should therefore determine whether its value must be included in the employee’s taxable income and contribution base.
If an employee pays for a benefit through payroll deductions, the employer should obtain the required written consent and comply with Polish rules protecting part of the employee’s remuneration from deductions.
Eligibility rules should be transparent and based on objective criteria. Employers should also explain whether a benefit ends when employment terminates, whether family members can participate and what personal data will be transferred to the provider.
