The last month of the summer brought notable modifications concerning the delegation of drivers in road transport. On August 19, 2023, new regulations from the Mobility Package came into effect, which alter the method of settling wages for Polish drivers working in another EU country. The primary alteration is the increase in benefits deductible from the social insurance contribution base.
The changes in August are successive ones, which fundamentally impacted drivers’ earnings. Since February 2022, drivers carrying out official duties in international transport are not on business trips. This indicates that allowances no longer dominate their salaries, forcing a significant increase in basic pay.
Domestic Delegations Only
Currently, a business trip can be described only in the context of transport within Poland. The specificity arises from the drivers’ working time legislation.
According to the current provisions, by “business trip” for drivers, one understands every official task performed within domestic road transport or setting out for such transport on the employer’s command outside specified locations/places. These drivers are entitled to allowances in line with the Labor Code, and these benefits are exempt from taxes and contributions, explains Beata Gądek, an expert from TC Law Firm.
No Allowances but Increased Salary
The Mobility Package includes drivers under the regulations concerning employee delegations for all types of transport, including cabotage. A consequence of this is that international transport drivers are not paid allowances, but they are entitled to the remuneration effective in the country where the service is performed.
Partial tax and contribution exemptions were anticipated:
- For determining the personal income tax base – regulations for domestically employed individuals temporarily abroad.
- For setting the base for pension and disability insurance contributions – regulations for workers employed abroad by Polish employers.
From August 19, 2023, the range of services deductible from the social insurance contribution base expanded.
Previously, the deduction was for the equivalent of the allowance for business trips abroad, with certain stipulations. Now, for international drivers whose monthly income exceeds the average salary, a 60-euro equivalent for each day of stay is not included in determining the social insurance contribution base, clarifies Beata Gądek.
Wages and Working Conditions During Delegations
Benefits equivalent to the driver’s incurred costs can include accommodation, travel to the transport start location, documented expenses, and the use of sanitary facilities. As stated by the TC Law Firm expert, the driver’s salary can be paid in two installments:
- Initially, within the first 10 days of the following month.
- Subsequently, immediately after determining the total salary amount, no later than the 21st day of the next calendar month.
These are fixed, predetermined deadlines.
The principle of delegation is to ensure employment conditions as per the host country’s laws. The dispatching carrier must provide conditions in line with the Polish Labor Code. If a driver performs cabotage in Poland, they are entitled to remuneration according to Polish law. The National Labor Inspectorate monitors employment conditions. Matters related to employment contracts in EU countries will be decided according to the sending country’s regulations.
Delegation According to Regulations
Delegating is associated with specific administrative duties:
The essence is to report the delegation, mentioning relevant details. Delegated drivers must have documentation confirming their status, explains Beata Gądek from TC Law Firm.
Drivers unable to produce the mentioned documents during inspections may face hefty penalties imposed on both the driver and the carrier.
Failure to possess the necessary documents could result in a fine ranging from 4,000 to 7,000 PLN, the TC Law Firm expert explains. Equipping drivers with tampered or forged delegation notifications or altered or falsified delegation confirmations carries a risk of a 7,000 PLN fine. Meanwhile, if the carrier reports inconsistent information, they could face penalties up to 4,000 PLN.
While the new delegation regulations have enhanced the situation for Polish drivers, they might weaken the Polish transport sector’s position in the international market. A significant advantage was the lower transport costs, partly due to Polish drivers’ lower salaries compared to Western Europe. Now, they must receive remuneration commensurate not with their country of origin but with the location of service provision. Although this might harm the Polish TSL sector, it essentially levels the playing field for all European carriers in a highly competitive international transport market.
