NAVIGATION
1. Admission
A natural person running their own business registered in CEIDG is obliged to pay social insurance (ZUS) and health insurance contributions for themselves.
Mandatory ZUS contributions are divided into several categories:
- social security contributions are:
- (i) pension,
- (ii) pension,
- (iii) accidental,
- contributions to funds: Labor Fund and Solidarity Fund
Entrepreneurs can still pay sickness insurance contributions voluntarily.
Additionally, entrepreneurs pay health insurance contributions.
An entrepreneur is subject to ZUS contributions in Poland regardless of his or her citizenship, which means that a citizen of Ukraine who has registered his or her business in Poland must also pay ZUS contributions in Poland.
It is worth mentioning that so-called unregistered activity, i.e. activity that does not need to be reported to CEIDG, is not considered economic activity. We deal with unregistered activity when a person's monthly income does not exceed 75% of the minimum wage (in 2024 this limit is: January-June PLN 3 and July-December PLN 181,50) and for the last 3 months he or she has not conducted economic activity. People who meet these conditions and conduct such activity are not subject to social insurance or health insurance in Poland.
2. General principles and the amount of ZUS contributions
The amount of contributions and the right to preferential ZUS contributions depend on the form of taxation chosen by the entrepreneur, the amount of income or revenue from business activity from both the previous and current year, as well as the average or minimum wage. In general, the contribution system for entrepreneurs is quite diverse and complicated in Poland.
Entrepreneurs pay social insurance contributions based on the declared amount, and therefore not on actual income (note: a different rule applies to health insurance contributions). The basis for calculating contributions is an amount not lower than 60% of the forecasted average salary for a given year.
In 2024, the contribution base is PLN 4 (694,40% of PLN 60). This is the minimum base, so the entrepreneur can (voluntarily) declare and pay higher contributions (while remembering the 7-fold limit, i.e. the maximum amount of the contribution base for retirement and disability insurance - in 824, the annual limit is PLN 30). In the case of voluntary sickness contributions, the contribution base cannot exceed 2024% of the average monthly salary - in 234, this is PLN 720.
Type of insurance/fund: | Retirement | Annuity | Accidental | Sick leave | Labor Fund and Solidarity Fund |
Monthly contribution calculation basis | 4 694,40 zł | 4 694,40 zł | 4 694,40 zł | 4 694,40 zł | 4 694,40 zł |
Contribution amount in % | 19,52% | 8% | 1,67% | 2,45% | 2,45% |
Contribution amount | 916,35 PLN | 375,55 PLN | 78,40 PLN | 115,01 PLN | 115,01 PLN |
Total monthly contributions payable | 1 600,32 zł | ||||
Total contributions to be paid, excluding voluntary health insurance | 1 485,31 zł |
3. Declaration and deadline for payment of ZUS contributions
The entrepreneur settles ZUS contributions for himself, his collaborators and his employees in a monthly settlement declaration on the ZUS DRA form.
The deadline for submitting settlement documents and paying contributions for the previous month is the 20th day of each following month – for contribution payers, including entrepreneurs paying contributions exclusively for themselves and entrepreneurs employing employees or other insured persons.
4. Social insurance contributions and PIT settlements
Paid social insurance contributions: pension, disability, sickness and accident insurance can be included in tax costs or deducted from income/revenue. The method of deduction depends - among other things - on the type of contribution and the form of taxation chosen by the entrepreneur.
In turn, contributions to the Labour Fund and the Solidarity Fund can only be included in the costs of obtaining income (i.e., for example, in the case of a flat-rate tax, they cannot be deducted at all). It is worth mentioning that an entrepreneur does not have to pay contributions to the Labour Fund and the Solidarity Fund for themselves if they are entitled to reduced ZUS contributions from the preferential base or have reached the age of 60 (men) or 55 (women).
5. Contribution holidays
From November 1, 2024, entrepreneurs can take advantage of contribution holidays - i.e. exemption from paying ZUS contributions for one freely chosen month of the year.
Contribution holidays cover contributions to the entrepreneur's own insurance and are voluntary. During the month of leave, the entrepreneur must still pay contributions for insured persons, such as employees or contractors.
In order to take advantage of this relief, the entrepreneur should submit an application to ZUS in the month preceding the calendar month that is to be covered by the exemption. Contribution holidays include exemption from paying contributions for:
- compulsory pension, disability and accident insurance,
- Labour Fund and Solidarity Fund,
- voluntary health insurance (if the entrepreneur was covered by this insurance in the month of submitting the application and the preceding month).
Generally, an entrepreneur who meets the following conditions may benefit from contribution holidays:
- was subject to compulsory ZUS insurance in the month preceding the submission of the application,
- paid ZUS insurance contributions for himself or herself or for no more than ten people, including himself or herself,
- income from business activities did not exceed the equivalent of EUR 2 million or had no income from business activities at all (in one of the last two calendar years before submitting the application).
6. Reliefs on ZUS contributions
Entrepreneurs who are starting a business or have low income have the right to relief from ZUS contributions, thanks to which the premium can be significantly reduced.
An entrepreneur who provides services for a former employer cannot take advantage of reliefs (Start-up relief, preferential ZUS contributions, Small ZUS Plus) if the scope of activity overlaps with the activities performed as a full-time employee. The limitation applies to the tax year in which the entrepreneur performed work for the former employer and the following tax year.
7. Start-up allowance
This relief is generally available to people who are starting their first business activity or who had a business activity earlier, but 60 months (5 years) have passed since its termination.
Entrepreneurs taking advantage of the start-up relief for 6 month period from the day they start their business activity, they are exempt from social insurance, i.e. they do not pay contributions for retirement, disability and accident insurance, as well as for the Labor Fund and Solidarity Fund. However, the start-up relief does not apply to health insurance. Entrepreneurs continue to pay contributions for health insurance.
Taking advantage of the start-up relief also means that during this period the entrepreneur does not save for retirement or disability pension and does not receive any benefits in the event of illness, maternity or accident.
8. Preferential ZUS contributions
After the start-up relief period has elapsed – if the entrepreneur has used it – he or she can continue to pay reduced ZUS contributions for the next 24 months. Of course, he or she can also choose not to use the start-up relief or immediately use preferential ZUS contributions.
When using this relief, social security contributions are calculated from 30% of the minimum wage.
If a person only runs a business activity and benefits from preferential contributions, he or she does not have to pay contributions to the Labour Fund and the Solidarity Fund.
Type of insurance/fund: | Retirement | Annuity | Accidental | Sick leave | Labor Fund and Solidarity Fund |
Monthly contribution calculation basis | 1 272,6 zł | 1 272,6 zł | 1 272,6 zł | 1 272,6 zł | 1 272,6 zł |
Contribution amount in % | 19,52% | 8% | 1,67% | 2,45% | 2,45% |
Contribution amount | 248,41 PLN | 101,81 PLN | PLN 21,25 | PLN 31,18 | PLN 0 |
Total monthly contributions payable | 402,65 PLN | ||||
Total contributions to be paid, excluding voluntary health insurance | 371,47 PLN |
After the end of this period in which the entrepreneur pays reduced ZUS contributions, he or she may switch to standard contributions (paying them from a base of 60% of the average salary) or, if he or she meets the relevant conditions, use the small ZUS plus option.
The relief does not apply to health insurance, which is paid in full.
9. Small ZUS Plus
Regardless of the “Start-up Relief” and “Preferential ZUS contributions”, an entrepreneur may benefit from reduced ZUS under the so-called Small ZUS Plus. An entrepreneur may pay Small ZUS Plus also after using the Start-up Relief and after the period of paying reduced contributions from the preferential ZUS base. Small ZUS Plus cannot be used if the conditions for the preferential ZUS contribution relief are met.
This solution applies mainly to entrepreneurs whose income from business activities in the previous calendar year did not exceed PLN 120.
Entrepreneurs who meet the income criteria can pay contributions based on an individually determined amount for a period of 36 months, calculated on the basis of their income.
Such persons may limit the basis for social insurance contributions so that it falls within the range of 30% of the minimum wage (in 2024 – PLN 1) to 272,60% of the forecasted average wage (in 60 – PLN 2024).
An entrepreneur who wants to benefit from the Mały ZUS Plus relief must have conducted business activity in the previous calendar year for at least 60 calendar days.
You cannot benefit from Mały ZUS Plus if in the previous year you conducted business activity as: e.g. a creator, artist or freelancer.
Lower social insurance contributions under the small ZUS plus program can be paid for a maximum of 36 months during the next 60 calendar months of running your own business.
10. Health insurance contributions
The obligation to pay health insurance contributions is governed by its own, separate rules from social insurance contributions, and the amount of the health insurance contribution depends on:
- the form of taxation chosen by the entrepreneur and
- the amount of income he generates.
If the entrepreneur settles income tax:
1. on general terms (according to the tax scale), the health insurance contribution is 9% of the contribution assessment base (income from business activities).
It is worth noting that in this case it is not possible to deduct health insurance contributions from income or include them in tax revenue costs.
2. in the form of a flat tax (19%), will pay a health insurance contribution of 4,9% of the contribution assessment base (income from business activities).
Entrepreneurs who settle their taxes using the flat-rate tax method may include part of the paid contributions in their PIT settlement (by including them in the costs of obtaining revenues or by deducting them from income). For 2024, there is an annual deduction limit of 11 600 zł.
Regardless of whether the entrepreneur settles on general terms or on a straight-line basis – if his income in any month is lower than the minimum wage applicable in a given year – the amount of the health insurance contribution in that month will be 9% minimum wage (from January 2024 – PLN 4, from July 242 – PLN 2024).
3. flat-rate tax on recorded revenues, his monthly health insurance premium is 9% flat rate baseThe contribution calculation basis depends on the amount of annual income from business activity and amounts to:
- revenues not exceeding PLN 60 in a calendar year – the basis is 000% of the average monthly salary,
- revenues above PLN 60 and not exceeding PLN 000 in a calendar year – the basis is 300% of the average monthly salary,
- revenues exceeding PLN 300 in a calendar year – the basis is 000% of the average monthly salary.
Health insurance contribution 2024 – lump sum recorded | Average salary: PLN 7
|
Income per year | Monthly health insurance contribution amount 2024 |
Up to PLN 60 | PLN 419,46 – 9% of the amount of 60% of the average salary |
From 60 PLN to 000 PLN | PLN 699,11 – 9% of the amount of 100% of the average salary |
Over 300 PLN | PLN 1 – 258,39% of the amount of 9% of the average salary |
Entrepreneurs taxed with the flat-rate tax may deduct from their income for the purpose of PIT tax settlement 50% of the health insurance premium paid in the tax year for business activity taxed in this form. The deduction is also available for persons cooperating with the entrepreneur.
4. in form tax card, where the basis for calculating the health insurance contribution will be the minimum wage applicable in a given year and a rate of 9%. That is, the health insurance contribution in 2024 for such entrepreneurs is PLN 381,78 per month.
Taxpayers of the card can deduct part of the health insurance premium they have paid from the tax paid in this form. According to the regulations, the tax set in the decision of the head of the tax office can be reduced by an amount corresponding to 19% of the health insurance premium.
11. Annual health insurance contribution settlement
Regardless of the settlement for PIT tax purposes, entrepreneurs are required to settle the annual health insurance contribution due for 2024 in the settlement declaration for April 2025.
If, as a result of the annual settlement of the health insurance contribution, it turns out that this contribution was paid in an amount higher than the established one, the entrepreneur is entitled to a refund. The entrepreneur can apply for a refund of the overpaid health insurance contribution until the end of May 2025. This is the final deadline for submitting applications for a refund. ZUS will prepare an application for a refund of the overpayment on the PUE account, which the entrepreneur will be able to approve. The entrepreneur may also not apply for their refund, and then the overpaid contributions will be included in future settlement periods.
If the settlement indicates an amount to be paid, the entrepreneur shall pay the amount of the annual health insurance contribution settlement together with the contributions resulting from the declaration for April 2025 by 20 May 2025.
12. Concurrence of insurance titles to ZUS
The overlap of ZUS insurance entitlements for an entrepreneur occurs when the entrepreneur, in addition to the business activity he or she conducts, has other insurance entitlements, e.g. a contract of mandate, employment contract or other entitlements under which he or she is also subject to ZUS.
The most typical situations are conducting several types of business activities, an additional employment contract or a contract of mandate.
If an entrepreneur runs several companies and generates income from business, as a rule, pays social security contributions only from one activity of your choice. However, health insurance contributions are paid for each activity, i.e. the entrepreneur must pay a health insurance contribution from the total income.
If an entrepreneur runs a business and at the same time has an employment contract, whether he or she will pay social security contributions from the business depends on remuneration from an employment contract. If he receives at least the minimum wage from his employment contract, then while running a business he no longer has to pay social insurance contributions. Contributions are collected only from the salary for work. If the salary from the employment contract is lower than the minimum, then the entrepreneur also pays social insurance contributions for running the business.
Regardless of the amount of remuneration for full-time employment, health insurance contributions are paid both on remuneration received from an employment contract and from business activity.
If the entrepreneur also has a contract of mandate and the subject of this contract is different from the subject of the business activity, he or she is subject to mandatory social insurance solely for business purposes. Two conditions must be met simultaneously:
- pays standard ZUS contributions (60% of the forecasted average monthly salary)
- the value of the remuneration under the contract of mandate does not exceed 60% of the forecast remuneration for work in a given year.
However, he/she is subject to social insurance on both grounds, i.e. from business activity and from a contract of mandate, if at the same time:
- benefits from preferential ZUS contributions or the Mały ZUS Plus relief
- the value of the remuneration under the contract of mandate does not exceed the amount of the minimum wage.
13. Social Insurance Institution benefits
An entrepreneur covered by the ZUS system is entitled to the following benefits:
- Pension – an entrepreneur is entitled to a pension after reaching the statutory retirement age (60 years for women and 65 years for men), provided that they have paid pension contributions throughout their period of activity. The amount of the pension depends on the amount of contributions collected and their indexation. The longer the entrepreneur pays contributions and the higher their bases, the higher their pension will be. Entrepreneurs may voluntarily decide to continue their activity and pay pension contributions after reaching retirement age, which allows for a further increase in the future benefit.
- Pension due to incapacity for work – paying pension contributions entitles the entrepreneur to a pension in the event of partial or total incapacity for work, if, among other things, the entrepreneur has the required contributory and non-contributory period appropriate to the age at which the incapacity for work occurred, the incapacity for work occurred during the contributory period (for example while running a business).
- Sickness benefit – is available to an entrepreneur who pays voluntary sickness insurance contributions and is unable to work due to illness. The benefit is paid after a waiting period of 90 days from the date of registration for sickness insurance.
- Maternity allowance – available to entrepreneurs who pay voluntary sickness insurance contributions. It is paid in connection with the birth of a child, adoption or taking care of a child. The amount of maternity benefit depends on the amount of contributions paid (from the declared base from which contributions are calculated) in the last 12 months before the start of maternity leave.
- Paternity leave – An entrepreneur can take paternity leave, provided that they pay a voluntary contribution to sickness insurance. This leave lasts 14 days (2 weeks) and can be used in its entirety or divided into two weekly periods, with each part having to last at least one week. An entrepreneur is entitled to paternity leave if the child is under 12 months old. An entrepreneur can also take paternity leave while the child's mother is on maternity leave. During paternity leave, ZUS pays the entrepreneur a paternity benefit, and the entrepreneur can reduce social insurance contributions for the duration of paternity leave.
- Care allowance – a benefit granted in the event of the need to care for a sick child or other family member. To obtain this benefit, the entrepreneur must also pay a sickness contribution.
- Rehabilitation allowance – benefit for entrepreneurs who, after exhausting their sickness benefit, still require treatment or rehabilitation and are unable to work. Requires payment of a voluntary sickness contribution.
- Work accident benefit – if the entrepreneur is covered by accident insurance, he or she may receive an accident benefit in the event of an accident at work or an occupational disease.
- Funeral grant – this benefit is due to the family of the deceased entrepreneur or the person who covered the costs of his funeral. The funeral allowance is also paid when a family member of the insured entrepreneur dies.
Each of these benefits requires appropriate contributions, and their amount depends on the selected contribution base. It is worth noting that voluntary payment of the sickness contribution allows the entrepreneur to use additional benefits, such as maternity, sickness and rehabilitation benefits.
14. Employment of employees by the entrepreneur
If an entrepreneur decides to employ employees, they are obliged to pay contributions to ZUS for the following insurances:
- Social security:
- Retirement
- Annuity
- Accidental
- Sick leave
- Medical insurance
- The Labour Fund (FP) and the Solidarity Fund (FS)
- Guaranteed Employee Benefits Fund (FGŚP)
15. Amount of ZUS contributions
Social Insurance Institution (ZUS) contributions that an entrepreneur is obliged to pay for employees are financed partly by the employer (entrepreneur) and the employee.
Ubezpieczenie | SUM | part financed by the employer | part financed by the Employee |
Retirement1) | 19.52% | 9.76% | 9.76% |
Annuity1) | 8.00% | 6.50% | 1.50% |
Sick leave | 2.45% | - | 2.45% |
Accidental |
1.67%2) / (0.67% - 3.33%)3) |
1.67%2) / (0.67% - 3.33%)3) | - |
Labor Fund | 2.45% | 2.45% | - |
Guaranteed Employee Benefits Fund | 0.10% | 0.10% | - |
SUM | 34.19%2) / (33.19% - 35.85%)3) | 20.48%2) / (19.48% - 22.14%)3) | 13.71% |
1) contributions paid up to the employee's annual income limit PLN 234 (720) 2) up to 9 employees 3) more than 9 employees – contribution depends on the type of activity | |||
Health insurance contribution | |||
9.00% the basis of assessment, i.e. the employee's gross income reduced by the employee's ZUS contributions | |||
16. Employee registration with ZUS
Each employee must be registered with ZUS before starting work. The registration should be made within 7 days of the date of employment. To do this, the entrepreneur must complete the ZUS ZUA form (if the employee is covered by all insurances) or ZUS ZZA (if they are only reporting to health insurance).
17. Employment of persons by an entrepreneur on the basis of a contract for services
When cooperating with individuals on the basis of a contract for services, the entrepreneur, as a rule, incurs the same ZUS costs as in the case of an employment contract, unless the employee is covered by social insurance on other grounds in another company (coincidence of insurance grounds). Certain differences are related to sickness contributions, which are limited.
18. Employment of persons by an entrepreneur on the basis of a contract for specific work
Employing people on the basis of a contract for specific work by an entrepreneur is associated with several significant consequences related to ZUS:
- No social security contributions: The employer is not obliged to pay social security contributions (pension, disability, accident, sickness) or health insurance for people employed under a contract for specific work. This means that the person performing the work is not entitled to ZUS benefits, such as retirement or disability pension.
- Lack of insurance coverage: people performing their duties under contracts for specific work are not covered in the event of illness, accident at work or maternity. In the event of health problems, the contractor will not receive sickness benefits or other benefits.
- Reporting to ZUS: although people performing activities based on a contract for specific work are not subject to ZUS, the entrepreneur is obliged to inform ZUS about the conclusion of such a contract. Information about the conclusion of a contract for specific work should be submitted to ZUS within 7 days of the date of conclusion of the contract. This can be done electronically, via the ZUS PUE portal or in writing, on the ZUS-RUD form.
- Possibility of classifying the contract as an employment contract: if the contract for specific work is in fact an employment contract (e.g. concerning work at fixed hours, under the direct supervision of the employer), ZUS may classify it as an employment contract. In such a case, the entrepreneur will bear the financial consequences related to outstanding social security contributions and financial penalties.
- No right to leave: People employed under a contract for specific work are not entitled to leave or other rights granted to employees employed under an employment contract.
19. ZUS inspections
The Social Insurance Institution (ZUS) is obliged to carry out audits of contribution payers, which results from the Act on the Social Insurance System of 13 October 1998. The aim of the audit is to check whether entrepreneurs correctly fulfil their obligations in the field of social insurance.
As part of the inspection, ZUS checks whether entrepreneurs:
- register themselves, their employees and other persons for social security in accordance with the regulations,
- correctly calculate, deduct and pay contributions and other dues,
- correctly determine entitlement to social security benefits,
- pay benefits and settle related liabilities in a timely and proper manner,
- prepare applications for pensions and annuities in accordance with deadlines and requirements,
- issue certificates and report data required for social insurance.
If an entrepreneur (payer of contributions) is in arrears with the payment of contributions, ZUS may also check his assets.
The inspection is carried out by ZUS inspectors. Before starting the inspection, the ZUS inspector must show his/her official ID and give the entrepreneur authorization to carry it out. These documents should be presented directly to the payer of contributions or his/her authorized representative.
If the payer of contributions is an entrepreneur, ZUS is obliged to inform them in advance of the intention to conduct an inspection. In such a case, the inspector may start the inspection no sooner than after 7 days and no later than within 30 days from the date of delivery of the notification. However, the inspection may start earlier if the entrepreneur agrees to this in writing. If 30 days have passed since the delivery of the notification, ZUS must submit it again before the inspection begins.
Inspections are planned on the basis of an annual schedule, and entrepreneurs are selected for inspection based on a risk analysis of potential irregularities in the implementation of obligations towards ZUS.
20. Employee capital plans
Employers employing employees, like other employers, are required to create an Employee Capital Plan (PPK) for employees. Employee Capital Plans (PPK) are a savings program that aims to increase retirement savings. Creating a PPK is mandatory for employers, while employee participation is voluntary (they can opt out).
Micro-entrepreneurs who employ at least one employee must also create a PPK. This obligation applies to all companies, regardless of their size. However, a micro-entrepreneur will be exempt from the application of the PPK Act if all persons under 55 years of age submit a declaration of resignation from making payments to the PPK. In such a situation, the entrepreneur is exempt from the obligation to create a PPK.
The basic contribution to PPK financed by the employee is generally 2% of their gross salary, and the basic contribution financed by the employer is 1,5% of the employee's salary. The employee can also finance an additional contribution of up to 2%, and the employer an additional contribution of up to 2,5% of salary.
Entrepreneurs are obliged to inform employees about the principles of PPK operation, contribution amounts and their rights.