[Poland] Working pensioners will settle their additional income with the ZUS by the end of February

29 February is the deadline for informing the Social Insurance Institution (ZUS) of additional income earned in 2023 by early retired pensioners and disability pensioners.

Retired pensioners and disability pensioners report additional earnings to ZUS

The Social Insurance Institution settles the benefits paid to retired pensioners and disability pensioners on the basis of certificates from workplaces or declarations of income earned by self-employed persons.

The obligation to inform ZUS of the additional income for 2023 by 29 February 2024 concerns:

• working disability pensioners and early retired pensioners (including those who worked abroad in the previous year or kept ZUS informed of gainful activity).

The legislation refers to disability pensioners and retired pensioners:

• who have not reached the general retirement age (60 for women and 65 for men) and
• who have earned additional income in 2023 from an employment contract, a contract of mandate or from running a business.

Information on income – ZUS may reduce or suspend benefit

Informing the Social Insurance Institution about additional income is an obligation for working disability pensioners and early retired pensioners. This is because the Act on Pensions from the Social Insurance Fund sets limits on the amount they can earn.

The limits on additional income are as follows:

• Additional income does not exceed 70% of the average monthly salary – pension paid in its full amount;
• The additional income exceeds 70% of the average monthly salary (from December 2023 to February 2024 the limit is PLN 5,036.50, from 1 March 2024 it will be PLN 5,278.30) – the benefit for a given month is similarly reduced;
• Additional income exceeds 130% of the average monthly salary (in the period from December 2023 to February 2024 the limit is PLN 9,353.50, from 1 March 2024 it will be PLN 9,802.50) – payment of the benefit for a given month is suspended.

Additional income limits do not always apply

There are some working pensioners who do not have to settle with the Social Insurance Institution. These are retired pensioners who have reached the general retirement age of 60 for women and 65 for men. They are free to earn extra income without restrictions and are not bound by the limits mentioned earlier.

Moreover, the limits on additional income do not further apply for:

• Persons receiving a family allowance pension, as a more favourable benefit, who have an established right to an old-age pension on completion of the general retirement age;
• Persons receiving a partial retirement pension, a war disabled person’s pension, a military invalid’s pension, whose inability to work is connected with military service or have a survivor’s pension from such an invalid;
• Secondary school pupils and students receiving a family allowance or disability pension who are under 26 years of age and employed under a contract of mandate or agency contract;
• Retired pensioners and disability pensioners who earn income that is not subject to social insurance, e.g. from a contract for specific work that is not performed for their own employer.

Moreover, the Social Insurance Institution may settle the benefit according to one of two settlement methods – annual or monthly settlement, applying the variant which is more favourable for the benefit recipient. In order to enable the Social Insurance Institution to settle the benefit in a way which is most favourable for the benefit recipient, it is necessary to submit a certificate of the amount of earnings achieved in particular months. At the same time, it is important that the payer of contributions shows in the certificate on the amount of income earned last year the earnings of individual months.

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