25.10.2019 ZUS

[Poland] Changes in 2020 ZUS contributions


„Mały ZUS plus” (Small ZUS plus) for the smallest companies and an increase in the financial burden for other entrepreneurs – these are the changes planned in social security contributions from 1 January 2020.

A bill introducing the so-called “Small ZUS plus” will reduce the contributions for the smallest enterprises and will expand the group of recipients of the existing relief. At the same time, the minimum amount of ZUS contribution for companies that will not benefit from the relief will increase by almost 10%.

Small ZUS plus – support for micro-enterprises

The Ministry of Entrepreneurship and Technology has submitted to public consultations a bill reducing ZUS contributions for the smallest companies, the so-called Small ZUS plus. It is scheduled to enter into force in January next year, and the amount of social security contributions will be calculated on the basis of income level.
Currently, since January 2019, the Small ZUS programme has been in force. It makes the amount of contributions for the smallest enterprises dependent on the revenue level.

Small ZUS plus – the terms and conditions of taking advantage of the relief:

  • the annual revenue in 2019 not exceeding 120 thousand zlotys per year and the income not exceeding 6 thousand zlotys per month,
  • operating in 2019 for at least 60 days,
  • not having the settlement in the form of a tax card in the previous year and not benefiting from the exemption from VAT on sales,
  • submission of information in a personal report or in a settlement declaration on income, taxation form, annual revenue from non-agricultural business activity and contribution basis,
  • taking advantage of the reliefs in the established order i.e. first tax relief for new start-up companies (“ulga na start”), then preferential contributions for 24 months and only then Small ZUS plus,
  • the new relief may be continued only for 36 months in the consecutive period of 60 months of running business operations.

Small ZUS plus is to enter into force from 1 January 2020. The intention to benefit from this relief must be declared by the end of January. MPiT estimates that nearly 320 thousand companies will take advantage of the new solution. However, lower contributions will automatically lead to lower pensions in the future.

Small ZUS plus – advantages

Source: www.pit.pl

Increase in minimum ZUS contributions

Entrepreneurs not subject to reliefs will face a substantial increase in the amount of social security contributions. It is already known that the draft budgetary act for 2020, approved by the Council of Ministers, provides for an increase in the average gross monthly remuneration by nearly 10%, i.e. to the amount of PLN 5227. Thus, the minimum social security contributions for people running business activity will increase by 9.7%.

Such a significant increase is a result of the fact that the amount of social security contributions is dependent on the average projected gross remuneration in a given year, which shows a relatively high upward trend.

At the same time, the minimum gross remuneration will increase from January 2020 to the amount of PLN 2600. Thus, the basis of social security contributions will be increased and the rates themselves will automatically rise.


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