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Lower ZUS for small business

The draft amendment of the Social Security System Act prepared by the Ministry of Family, Labour and Social Policy provided for an extension of the period during which the new entrepreneur will be entitled to pay ZUS contributions at a reduced rate by first three years of business....

The draft amendment of the Social Security System Act prepared by the Ministry of Family, Labour and Social Policy provided for an extension of the period during which the new entrepreneur will be entitled to pay ZUS contributions at a reduced rate by first three years of business....

The draft amendment of the Social Security System Act prepared by the Ministry of Family, Labour and Social Policy provided for an extension of the period during which the new entrepreneur will be entitled to pay ZUS contributions at a reduced rate by first three years of business.

Finally, work on the project on preferential rates of ZUS for new entrepreneurs was postponed in time.

It is competitive to the solution proposed by the Ministry of Family, Labour and Social Policy that the Ministry of Development prepares a bill on the so-called small business activity, according to which the ZUS contributions will depend on the amount of revenue obtained.

In accordance with applicable regulations of the entrepreneur, by first 24 months of business activity, the right to pay ZUS contributions calculated from the reduced basis of the dimension which is currently 30% the minimum wage for work.

After 2 years the entrepreneur loses the right to benefit from preferential contributions from the Social Security Office, meaning that from 25 the month of establishment is obliged to pay contributions for which the basis of the assessment is 60% average salary for work.

Thus the monthly social security contribution increases from the amount 190.62 PLN up to amount 812.61 PLN, to which the health premium of 297.28 PLN.

The draft amendment of the Social Security System Act prepared by the Ministry of Family, Labour and Social Policy assumed to leave the reduced contributions of the Social Security Office in first two years of activity at the current level, i.e. 30% minimum wage for work.

The change was not due until third the year in which contributions were also to be reduced but counted from the base of the dimension of 60% minimum wage for work.

The above would mean that contributions paid between 25 a 36 A month of business activity would be higher than contributions due in first 2 years of operation, but still significantly lower than the "standard" contributions which would apply only from fourth the year of business activity.

However, the bill on the social security system ultimately addressed to the Sejm does not propose preferential contributions from the Social Security Office to new entrepreneurs.

A competitive bill reducing the burden on social security contributions of low-income entrepreneurs was prepared by the Ministry of Development. The so-called Small Business Act provides for a new reduced amount of social security contributions for entrepreneurs achieving a monthly income of less than 2.5-the rate of minimum remuneration.

This means that the amount of insurance premiums, the labour fund and health premiums will depend on the amount of income generated. An entrepreneur who does not get the equivalent of two and a half times the minimum wage will have a reduced premium.

The bill on the so-called small business activity, which assumes a reduction of contributions for entrepreneurs, is to go to the Sejm at the end 2017.

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