Social fund occurs in many workplaces, but not everyone knows what the Social Fund is. The Social Fund is found in many workplaces, but not everyone knows exactly what it is and how it can be used. The Company Social Benefits Fund, or ZFŚS, is a fund that is collected by the employer for the purpose of providing social assistance to employees. When is there an obligation to create a social fund? Who can make use of it? We answer.
Who is obliged to set up the ZFŚS?
The Company Welfare Fund must be established by employers:
- with at least 50 employees,
- employing at least 20 employees, provided that the fund is requested by a company trade union,
- operating in the form of budgetary units and local government establishments.
The legal act governing the Company Social Benefits Fund is the Act of 4 March 1994 on the Company Social Benefits Fund. Our product for the SAP platform supports the handling of the ZFŚS.
Who can benefit from the ZFŚS?
The resources collected in the fund are intended to meet the social needs of the:
- employees and their families,
- pensioners (former employees) and their families,
- other persons designated by the employer, e.g. persons cooperating under civil law contracts.
The nature and amount of the aid granted depends on the material, family and health situation of the beneficiaries, so there cannot be a situation in which all employees are paid an equal amount of the fund. In this case – to each according to need!
What can the funds of ZFŚS be used for?
The funds collected by the Company Social Benefits Fund are used to finance the following social activities:
- leisure activities, e.g. holiday subsidies,
- cultural and educational activities, e.g. subsidised cinema or theatre tickets,
- sports and leisure activities, e.g. subsidised sports cards,
- childcare at day nurseries, children’s clubs, kindergartens,
- material or financial assistance, e.g. purchase of Christmas parcels for children, aid due to accidents,
- assistance for housing purposes, for example a renovation loan.
The detailed terms and conditions for the use of social benefits should be laid down in the internal regulations agreed by the employer with the employees’ representatives.
How to fund ZFŚS?
The Company Social Benefits Fund at SAP is created from an annual basic allowance calculated according to the number of employees. Its amount per employee is 37.5% of the average monthly salary of the previous year.
The funds of the Fund are collected in a separate bank account and can only be spent for strictly defined social purposes. Although it would seem that accounting for funds from the Social Fund should not be difficult, in practice it can cause many problems.
Rules for the granting of benefits from the ZFŚS
It is the employer’s responsibility to distribute the funds to its employees. When distributing, the material, living, family and health situation of individual employees must be taken into account.
In practice, a social committee is most often set up and has a say in who benefits are granted to whom and in what amount – that is, the employee submits an application and the committee decides (on the basis of the regulations) whether benefits are due.
Among the indicators that companies use to determine the extent of assistance, the most common are the number of people in a shared household and the average income per family member.
How can the handling and settlement of benefit claims be streamlined? The right SAP Benefit Management software automates the process and does some of the work for the HR officer.
Get to know the SAP Haergi e-Fund! Company benefit fund management software on SAP HR. How does it work? We would be happy to tell you. Write to us now!
