Publication date: May 05, 2026
With the development of technology, in the age of digital innovation, increasing emphasis is being placed on the so-called token model, which provides a portion of employee compensation. This model involves companies paying a specific portion of an employee’s earnings in the form of utility tokens, which are digital units of value created using blockchain technology — the same technology used for cryptocurrencies. These tokens constitute a form of barter that can be exchanged for loyalty points, various benefits (training on specific topics, language courses, etc.), bonuses, and specific services or privileges at work. These tokens are stored in a virtual wallet within an app, accessible by each employee. Furthermore, these tokens can sometimes be exchanged for cash, which sometimes raises legal issues, as discussed below.
Tokens
Considering the technical aspect, a token in a broader sense than just an employee benefit can be defined as a line of code. A more precise definition of this crypto-asset is provided in Regulation (EU) 2023/1114 of the European Parliament and of the Council, known as MICA, which, in Article 3, divides tokens into three separate categories. In the case we are discussing, we are dealing with a utility token, used solely to access a specific good or service provided by a specific issuer in a specific environment (in our case, an internal workplace). It is important that it does not function as a means of payment. In the case of such a token, supervisory approval is not required; publishing an information document is sufficient. Another category of tokens specified in the EU regulation are asset-linked tokens. They must maintain relative value to one or more currencies, commodities, or other assets. They do not have the status of electronic money, although they attempt to maintain its function. Moreover, their issuer is not a bank (they can be described as a kind of equivalent to stablecoins). However, the MICA Regulation imposes several obligations on these assets, such as obtaining a permit for their issuance, maintaining a specified capital buffer, maintaining a reserve corresponding to the value of the tokens, and the ability for the holder to redeem the tokens. The final type of tokens specified in the MICA Regulation are tokens that also function as electronic money. These are cryptoassets with the same value as the official national currency. As mentioned in Article 48, Section 1 of the MICA, such tokens may only be issued by official electronic money institutions or banks, i.e., entities licensed under Directive 2009/110/EC. Furthermore, the issuer must be able to redeem the tokens at any value at any time. Classifying a token into any of these groups affects the organizational and legal structure of tokens.
Implementing the model
The model most often described in this article is implemented through an entity independent of the employer that organizes and manages the token system. This company is responsible for creating the token, determining the purpose for which it is issued, the distribution model, and selecting the appropriate technology to ensure its proper functioning. Furthermore, the company’s responsibilities include creating a virtual wallet within the application, which every employee participating in the token system will have access to. The company is also responsible for determining the technical and legal aspects, including establishing the terms and conditions for using the token program, as well as the documents necessary for its proper operation. Furthermore, the company prepares token issuances and provides technical support for the platform, and is also responsible for employee training and internal communication.
Mechanism of action
Token model assumes that it can be co-financed by both parties to the employment relationship: the employee and the employer. In practice, the employer covers a significant portion of the value of individual tokens, while the employee covers only a small portion. The operating process itself can be divided into the following parts:
– Employer’s declaration of willingness to grant utility tokens to its employees as part of some program.
– Employee’s consent to participate in the program and consent to the employer’s deduction of part of the net remuneration for co-financing the tokens.
– Issuing tokens by an external company that also operates and manages the platform.
– Enabling the exchange of tokens for individual goods via the platform, or their resale to the token company.
– Repurchase of so-called unused tokens – payment to the employee of the nominal value, i.e. the value that was financed by both parties.
Inclusion of the token in regulations
The most important legal acts regulating employee tokens in national law include the Personal Income Tax Act of 26 July 1991 (Journal of Laws of 2025, item 163, as amended). Article 12, section 1, states that an employee’s income includes not only their cash payments, but also the “cash value of benefits in kind or their equivalents,” regardless of the source of financing, which can be adapted to the issue analyzed in this article. Furthermore, Article 11, sections 2 and 2a of the Personal Income Tax Act also specify the method for valuing benefits in kind; this is to be done at market prices for similar items, taking into account their condition, wear, and tear, and the time and place of granting. Furthermore, numerous tax interpretations and case law also address the issue of tokens (one such judgment will be described in the next subsection).
In EU law, the flagship legal act regulating tokens is Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in cryptoassets and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 2023, p. 40, as amended). However, much depends on the nature of the employee token. It is assumed that if such a token is provided free of charge or as part of an internal rewards program, they may be exempt from certain MICA requirements. However, even if a token is subject to EU regulations, it does not determine its tax treatment as employee income – this is regulated by national law.
Case law
An important ruling on the subject of employee tokens is the Judgment of the Court of Appeal in Warsaw of February 19, 2025, case no. III AUa 1247/24. It resolves a dispute between an employer and the Social Insurance Institution (ZUS), which concerns an employee benefit based on a blockchain token SoCap. It allowed employees to purchase tokens monthly at a lower price than the market price, with the employer covering the difference in value. These tokens operate in a virtual wallet within a dedicated application and allow for the use of specific functions within a closed system. The Social Insurance Institution (ZUS) determined that such a benefit constitutes income from employment and should be subject to ZUS contributions. According to the ZUS, despite being digital and having an unusual formula, the token is a form of benefit similar to remuneration and does not fall within the list of benefits listed in § 2, section 1, item 26 of the Regulation of the Minister of Labor and Social Policy of December 18, 1998, regarding detailed principles for determining the basis for calculating contributions for retirement and disability insurance (Journal of Laws of 2025, item 316). The District Court ruled that this type of benefit met the exemption criteria specified in the regulation. The employee acquires a service or entitlement for partial payment, which corresponds to the mechanism of purchasing at preferential prices. The Court of Appeal also upheld this argument, dismissing the ZUS (Social Insurance Institution) appeal, finding that the service-based, not monetary, nature of the benefit is decisive. The employee does not receive money, but rather access to a digital service system. This ruling aligns with existing case law permitting preferential sales of goods and services to employees (sports cards, car discounts), highlighting the continuity of the approach in the technological context. In practice, the ruling is precedent-setting and paves the way for the design of token- based digital benefits that can benefit from exemption from ZUS contributions, provided they are properly incorporated into internal remuneration regulations and the non-monetary nature of the benefit is maintained. At the same time, it reminds us that despite the contribution exemption, the value of such a benefit is still subject to personal income tax.
Buying below market value
If an employee purchases tokens at a price lower than their market value, the difference between the purchase price and the value may be treated as a gratuitous or partially gratuitous benefit from the employer. Pursuant to Article 12, Section 1 of the Personal Income Tax (PIT), such income should be included in the employee’s income. In practice, the tax authority recognizes that granting tokens at a preferential price may create net income equal to the market value, from which the price paid is deducted, thus conferring a financial benefit on the employee.
Risks
The main risks associated with using token systems are primarily legal. If tokens are part of remuneration, there are risks related to tax obligations, as well as the risk of GDPR violations and the risk of the regulations being challenged by the National Labor Inspectorate. Another group of risks includes technological risks, which include: token theft (if the wallet’s security is insufficient), irreversible transactions (if the blockchain is public), and various types of application or infrastructure failures. Business risks include: excessive token volume (so-called inflation), lack of employee acceptance of the system, and difficulties in accurately valuing benefits and specific settlements.
To mitigate the following risks, clear token program regulations should apply, their unambiguous classification, taxation principles and token valuation should be consulted with a professional tax advisor, and token issuance limits and audits should be in place in accordance with GDPR regulations.
Token model, financed by both the employer and the employee, develops new opportunities in terms of remuneration, motivation, competitive advantage, and building trust and team engagement. This solution fosters innovation, cost optimization, and diversification of employee income. However, when implementing the described system, clear and transparent program rules, tax analysis, and appropriate communication with employees remain crucial.