[Poland] ZUS contribution holidays – everything you need to know about the new relief

From 1 November 2024, entrepreneurs entered in the Central Register and Information on Economic Activity (CEIDG) can take advantage of a monthly exemption from paying ZUS contributions for themselves. What are the contribution holidays and how to apply?

ZUS contribution holidays – what is the new relief?

ZUS contribution holiday is a one-month exemption from paying contributions for:

• compulsory social insurance: pension, disability and accident insurance;
• voluntary sickness insurance;
• Labour Fund and Solidarity Fund – if the entrepreneur pays them.

The relief applies to contributions from the lowest assessment base, which applies to a person running a business and does not include contributions to the entrepreneur’s own health insurance.

Exemption from paying contributions – who can benefit?

The following persons may benefit from the exemption:

• micro-entrepreneurs registered in CEIDG, and
• court bailiffs.

Contribution holiday can only be used for one month per year, which is chosen by the entrepreneur independently.

The condition for benefiting from contribution leave is also:

• number of insured persons: maximum 10 insured persons (including the entrepreneur) registered for social insurance (pension, disability and accident insurance) or health insurance in the month before submitting the application;
• insured status, i.e. being subject to at least one day of insurance (pension, disability and accident) on account of conducting non-agricultural business activity in the month preceding the month in which the application is submitted;
• income from non-agricultural business activity in at least one of the last two years preceding the year in which the application is submitted may not exceed the PLN equivalent of EUR 2 million (if the application concerns 2024, it concerns 2022 or 2023)
• no business activity on behalf of the former employer in the previous year and in the year in which the entrepreneur submits the application until the date of submission of the application (“until” means here including that day); this refers to activities performed on behalf of the former employer that fall within the scope of the insured person’s current activity.

Two months of relief in a row?

As is known, contribution holidays can only be used for one selected month of the year. However, this does not mean that it is impossible to use them for two months in a row. Let us explain:

In 2024, contribution holidays can only be used in December (the application must be submitted in November). In December 2024, one can submit another application for holidays from ZUS for January 2025. In this way, the entrepreneur obtains exemption for two months in a row:

• for December 2024 and
• for January 2025

Contributions financed from the state budget

The contributions from which the entrepreneur is exempt are financed from the state budget (de minimis aid). This means that:

• they count towards the future pension or disability pension,
• the entrepreneur retains the right to social security benefits for the period of relief;
• in the month for which one is entitled to the exemption, one can run business without any problems; one does not have to suspend it;
• no option to benefit from the relief if, over a period of three years, the entrepreneur has received de minimis aid in the amount of EUR 300,000 or more.

Contribution holidays are therefore a good opportunity for a micro-business to take a slight break and put the money saved into business development.

Contribution holidays – how to take advantage of them?

To benefit from the new relief, you must submit an RWS application via the PUE ZUS platform (applications submitted in any other form will not be considered).

It is also important to submit the application one month before the planned period of leave. ZUS has prepared instructions to help fill out the application.

An entrepreneur who will be exempted from all contributions will receive information to a PUE/eZUS payer account. In the event of a partial exemption or if the relief is not granted, ZUS will issue a decision and also send it to the payer account.

It is also worth remembering that the completed application can be signed in one of the following ways:

• PUE profile,
• ePUAP trusted profile,
• personal signature,
• qualified electronic signature.

In addition, there is also the option of correcting the application, but only until its first consideration.

Why is it worth taking advantage of contribution holidays?

Taking advantage of the relief known as contribution holidays is associated with several benefits, including the following:

• savings: lower costs of running a business in the month of leave, the saved funds can be used, among other things, for investments in the development of the company;
• simplification of formalities: a one-time exemption from some obligations related to the settlement of contributions means fewer formalities for the entrepreneur;
• continuity of insurance: despite the exemption from paying contributions, the insurance remains valid, which guarantees future benefits from ZUS.

Contribution holiday – what do the statistics say?

Data published by the Social Insurance Institution (ZUS) indicate the great popularity of contribution holidays. In the period from 1 to 12 November 2024, ZUS received over 333 thousand applications for exemption from paying contributions. The largest number of applications were submitted by entrepreneurs from the Mazowieckie voivodship – 58 thousand. The lowest interest in the relief is currently observed in the Lubuskie voivodship – 8.3 thousand.

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