An employer who assigns remote work must cover the employee’s electricity and telecommunications costs. This can be done as an equivalent (reimbursement of actual expenses) or a lump sum (a fixed monthly amount). Both are exempt from PIT and ZUS contributions — under Article 67²⁵ of the Labour Code. Below you will find the employer’s obligations, how to calculate the amounts and how to book these costs.
What remote work costs must the employer cover?
The employer is obliged to cover the costs of electricity and telecommunications services necessary for remote work. It must also provide work tools and materials or pay an equivalent for them. This obligation follows from Article 67²⁴(1) of the Labour Code.
Mandatory cost categories
The law imposes four specific obligations on the employer:
- Work tools and materials — laptop, monitor, keyboard, headset and other technical equipment needed for work. The employer either provides them or pays an equivalent for using the employee’s own devices.
- Installation, servicing and maintenance — VPN setup costs, hardware repairs, software updates.
- Electricity — power consumed by the computer, monitor and workspace lighting.
- Telecommunications services — internet and phone used for remote work.
Additional costs — only if specified in internal regulations
The employer may (but does not have to) cover other costs directly linked to remote work — such as water, heating or office supplies. The condition: such reimbursement must be stipulated in an agreement with trade unions, remote work regulations or an individual agreement with the employee. Without this provision, the employer has no obligation to reimburse these costs.
At Progress Holding, we service over 280 companies with remote and hybrid workers. Most commonly, we see regulations that limit reimbursement to the two mandatory items — electricity and internet. Companies that add heating or water to their regulations can legally increase the lump sum, but this also increases employment costs.
What is the difference between an equivalent and a lump sum?
An equivalent is a reimbursement of actual costs — calculated from bills and consumption norms. A lump sum is a fixed amount set in advance, corresponding to the expected costs of remote work. Both forms are exempt from PIT and ZUS.
| Feature | Equivalent | Lump sum |
|---|---|---|
| Calculation basis | Actual costs (bills) | Expected costs (market averages) |
| Amount variability | Changes monthly | Fixed amount |
| Documentation | Bills from the employee | Employer’s calculation |
| Administrative burden | High (monthly calculations) | Low (one-time calculation) |
| Employee PIT | Exempt | Exempt |
| ZUS contributions | Not subject to contributions | Not subject to contributions |
| Employer’s deductible cost | Yes (indirect cost) | Yes (indirect cost) |
Most of our clients at Progress Holding choose the lump sum. The reason is simple: one calculation at the start, a fixed amount each month and no need to collect bills from employees. The employee does not have to present electricity or internet invoices — the lump sum calculation only needs to be based on market prices and consumption norms.
How to calculate the remote work lump sum in 2026
The lump sum amount is set by the employer, taking into account electricity consumption norms, market prices for telecommunications and the proportion of remote working time. The Labour Code does not prescribe specific amounts — it only defines the calculation criteria (Article 67²⁴(4)).
Calculating the electricity cost
A typical remote work setup (laptop + monitor + lighting) consumes approximately 0.1–0.15 kWh per hour. At an average electricity price of around PLN 0.65–0.85/kWh (G11 tariff after partial price unfreezing) and 8 working hours per day, the hourly cost is approximately PLN 0.07–0.13. This gives roughly PLN 0.55–1.00 per day and around PLN 12–21 per month (at 21 working days). Market practice is a lump sum of PLN 30–60 per month for electricity — the higher amount accounts for electric heating of the workspace or additional devices (printer, second monitor, docking station).
Calculating the internet cost
The average internet subscription cost in Poland is PLN 50–100 per month. Full-time remote work accounts for roughly one-third of connection usage (8 out of 24 hours). The proportional reimbursement is PLN 17–33 per month. If the employer provides the employee with a mobile internet device or a company phone, no telecommunications equivalent is required.
Sample lump sum calculation
| Cost component | Minimum | Market average | Higher estimate |
|---|---|---|---|
| Electricity | PLN 15 | PLN 40 | PLN 60 |
| Internet | PLN 17 | PLN 25 | PLN 35 |
| Private equipment depreciation* | PLN 0 | PLN 50 | PLN 100 |
| Total monthly lump sum | PLN 32 | PLN 115 | PLN 195 |
* Applies when the employee uses a personal laptop, monitor or phone for work. If the employer provides company equipment, this component is PLN 0.
Market practice in 2025/2026 is a lump sum of PLN 50–150 per month for full-time remote work. The amount must be reduced proportionally if the employee works remotely only part of the week (e.g. 2 out of 5 days — the lump sum is 40% of the full amount).
Is the remote work lump sum subject to PIT and ZUS?
No. The lump sum, equivalent and reimbursement of remote work costs do not constitute employee income under the PIT Act. They are also not subject to ZUS contributions. This follows directly from Article 67²⁵ of the Labour Code.
Confirmation from the tax authorities
The Director of National Tax Information has confirmed in individual rulings (including refs. 0114-KDIP3-2.4011.341.2023.2.MN and 0112-KDIL2-1.4011.487.2023.1.KF) that both the lump sum and the equivalent are not employee income. The employer does not withhold PIT or ZUS contributions on them and does not report them in the PIT-11.
Condition: the calculation must be reasonable
The PIT and ZUS exemption applies on the condition that the lump sum amount corresponds to the expected costs of remote work. If the tax authorities consider the amount inflated, the excess may be classified as employee income. From our experience at Progress Holding, lump sums of up to PLN 150 per month for full-time work do not raise concerns. For higher amounts — prepare a detailed calculation justifying each component.
How to book the remote work lump sum
The remote work lump sum is a deductible cost for the employer — as an indirect employee-related expense. In a tax revenue and expense ledger (KPiR), it is recorded in column 13 “Other expenses”, not column 12 “Remuneration”.
Recording in the KPiR
The lump sum is not remuneration under bookkeeping rules. It is a cost reimbursement — a different type of employee-related expense. The correct column is therefore column 13 “Other expenses”. The accounting document is the payroll sheet or a separate lump sum statement — signed by the employer and dated.
Recording in full accounting books
In full accounting books, the remote work lump sum is booked to cost-by-type accounts:
- Debit account 40-5 “Social insurance and other benefits” or account 40-9 “Other costs by type”
- Credit account 23-4 “Other employee settlements” (then Credit account 13-0 “Current account” upon payment)
Alternatively, the settlement account can be skipped: Debit 40-5 or 40-9, Credit 13-0 (bank account) or 10 (cash). The approach depends on the company’s accounting policy.
When the cost is recognised for tax purposes
The lump sum is a deductible cost in the month it relates to — provided it was paid or made available to the employee by the deadline set in the remote work regulations. If the employer pays late, the cost is recognised only on the actual payment date (Article 22(6ba) of the PIT Act; analogously Article 15(4g) of the CIT Act).
We process hundreds of payroll settlements at Progress Holding and know that timely lump sum payment directly affects when the cost is recognised. A delay of a few days can shift the expense to the following month — impacting the CIT or PIT advance.
Does occasional remote work require cost reimbursement?
No. Occasional remote work (up to 24 days per calendar year) does not oblige the employer to cover electricity, internet costs or pay a lump sum. This follows from Article 67³³(1) of the Labour Code, which excludes the application of Article 67²⁴(1)(2)–(4).
What does occasional remote work cover?
The employee may request occasional remote work for up to 24 days per year. No agreement or remote work regulations are needed. The employer must only provide work tools (e.g. a company laptop). There is no obligation to cover electricity and internet costs or to pay a lump sum or equivalent.
This is an important distinction. Many of our clients at Progress Holding use a hybrid model: 2–3 days from the office, the rest remotely. If remote work is agreed on a permanent basis (in the employment contract or regulations), the employer must reimburse costs. If the employee only uses occasional remote work (e.g. a few days per month on request), the employer has no such obligation.
How to properly implement remote work regulations
Remote work regulations are a document setting out the rules for remote work — including the form and amount of cost reimbursement. They are mandatory when there are no trade unions and no collective agreement has been concluded.
What must the regulations contain?
Remote work regulations should specify at least:
- groups of employees eligible for remote work,
- rules for covering costs (equivalent or lump sum) and the amounts,
- calculation methodology — with justification for the amount,
- communication rules (email, messenger, phone),
- rules for monitoring remote work performance,
- health and safety rules,
- data protection and IT security procedures,
- rules for installing, servicing and maintaining work tools.
The employer consults the regulations with employee representatives. The regulations take effect 2 weeks after being communicated to employees — analogous to internal work regulations.
What does this look like in practice? Progress Holding’s experience
Based on payroll services for over 280 companies at Progress Holding — including several dozen with remote or hybrid workers — we have identified three most common employer errors when settling home office costs.
Error 1: No regulations or agreement
38% of new clients who come to us with remote employees have no formal remote work regulations. They pay a lump sum “by feel” — without a calculation or legal basis. This is risky: without regulations, the tax authorities may challenge the PIT and ZUS exemption. Drafting regulations is a one-time effort — and it protects the company for years.
Error 2: No calculation supporting the lump sum amount
Even companies with regulations often lack a written lump sum calculation. During a ZUS or tax office audit, the employer must prove that the amount corresponds to expected costs. Without a calculation, the entire lump sum may be reclassified as employee income subject to PIT and ZUS.
Error 3: Paying a lump sum for occasional remote work
12% of clients paid a lump sum for occasional remote work (up to 24 days per year). The law does not require this — and a lump sum paid without a legal basis may be treated by the tax authorities as employee income. If the employee uses occasional remote work, do not pay a lump sum — unless you deliberately want to cover these costs as a benefit (in which case, tax and contribute accordingly).
Frequently asked questions
Can an employee waive remote work cost reimbursement?
No. The obligation to cover electricity and telecommunications costs is absolute. The employee cannot waive it. The Ministry of Labour confirmed in March 2023 that the employer cannot agree with the employee to forgo the lump sum in exchange for permission to work remotely.
Must the remote work lump sum be reported in PIT-11?
No. The lump sum, equivalent and cost reimbursement are not employee income (Article 67²⁵ of the Labour Code). The employer does not report them in PIT-11 and does not withhold PIT. They are also excluded from the ZUS contribution base in the ZUS DRA/RCA declaration.
Which KPiR column is used for the remote work lump sum?
Column 13 “Other expenses”. The lump sum is a cost reimbursement, not remuneration. Column 12 “Cash and in-kind remuneration” is reserved for gross wages — base salary, bonuses, allowances and holiday equivalents. The remote work lump sum does not fall into this category.
How to calculate the lump sum for an employee working remotely 2 days a week?
Proportionally. If the full-time remote work lump sum is PLN 100, an employee working remotely 2 out of 5 days (40% of the time) receives PLN 40. The lump sum must correspond to the actual proportion of remote work — this is a condition for the PIT and ZUS exemption.
Does the remote work lump sum apply to mandate contracts?
No. Articles 67¹⁸–67³⁴ of the Labour Code apply exclusively to employees on employment contracts. Mandate contractors have no statutory right to a remote work lump sum. Cost reimbursement may be agreed individually in the mandate contract — but it is not mandatory and is subject to standard taxation rules.
Is there a statutory cap on the remote work lump sum?
There is no statutory monetary cap. The Labour Code only requires the lump sum to correspond to expected costs. In practice, amounts of PLN 50–150 per month for full-time work do not raise concerns. For higher amounts, prepare a detailed calculation and keep it in your HR records.
Key takeaways for settling remote work costs
Settling remote work costs requires three documents: regulations (or an agreement), a written lump sum calculation and correct bookkeeping entries. Without them, the employer risks the PIT and ZUS exemption being challenged during an audit.
The obligation to cover remote work costs applies to every employer who agrees permanent or partial remote work with an employee. Draft the regulations, prepare a written lump sum calculation, pay it on time and book it in KPiR column 13 or to account 40-5/40-9 in your accounting books. Remember: the remote work lump sum is not remuneration — it is a cost reimbursement, free from PIT and ZUS.
Need help drafting remote work regulations, calculating the lump sum or handling payroll for remote employees? Contact us at Progress Holding: +48 603 232 418 or office@progressholding.pl. We serve companies on full and simplified accounting — from one employee to several dozen.
