On 15 May, the Prime Minister presented the Polish New Order, a socio-economic programme for the post-Covid period, the implementation of which is to take place in 4 stages. One of the planned changes involves introducing a new way of calculating and settling health insurance contributions. This will affect both the operations of entrepreneurs and the incomes of their employees.
Currently the health insurance contribution is 9% for all employees, the differences are in the way it is calculated:
Under the existing model, both employees with contracts of employment, contracts of mandate and other equivalent contracts and the self-employed are allowed to deduct part of their health contribution – 7.75% of the calculation base – from their taxes. Under the New Oder, however, this option is to disappear as from 2022.
The end of the possibility to deduct 7.75% of the calculation base of the health contribution from the tax due will result in an increase in the tax burden for employees and entrepreneurs.
For example, an employee earning around PLN 7 000 gross who currently pays 17% tax (the first tax threshold) will pay 24.75% income tax (7.75% more).
A self-employed person, currently taxed under the 19% flat tax, after the change will pay tax at the rate of 26.75% of income (19% + 7.75%).
One thing will remain unchanged and that is keeping the health contribution at 9%, but it will be calculated on income for all. The existing lump sum for entrepreneurs will therefore disappear.
At the same time, there is to be a minimal contribution rate so as to eliminate situations in which entrepreneurs who incur high costs and have no income do not pay health contributions at all.