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Abolition of the upper limit of ZUS contributions

The Ministry of Family, Labour and Social Policy has prepared a draft amendment of the Social Security System Act, which assumes the abolition of the upper limit of the ZUS contributions, above which the best earners do not currently pay contributions to pension insurance.

The Ministry of Family, Labour and Social Policy has prepared a draft amendment of the Social Security System Act, which assumes the abolition of the upper limit of the ZUS contributions, above which the best earners do not currently pay contributions to pension insurance.

The Ministry of Family, Labour and Social Policy has prepared a draft amendment of the Social Security System Act, which assumes the abolition of the upper limit of the ZUS contributions, above which the best earners do not currently pay contributions to pension insurance. According to the changes proposed by the Ministry, pension and pension contributions from January 2018 they'll be diverted from the entire income.

In the current legal order, the annual basis for the assessment of pension contributions in a given calendar year must not exceed the amount corresponding to 30-times the projected average wage in the economy per year. This means that people who earn thirty times (or more) of an average monthly salary do not pay contributions to pension insurance from a surplus over that threshold. Such a regulation was intended to prevent ZUS from paying very high pensions in the future and deepening social inequalities.

According to assumptions from 2018 Pension and pension contributions will be deducted from total income, as is the case for sickness and accident insurance. This means that, regardless of the amount of remuneration, pension and pension contributions will always be paid on all of this amount.

This principle will also be introduced for contributions paid by the payer for workers employed under special conditions to the Pension Fund. It is estimated that the state budget will benefit from the proposed changes of approx. 5,400,000,000 PLN A year. The abolition of the upper limit of contributions concerns approx. 350,000 people.

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