Summary of social insurance
In Poland there are four types of insurance: pension, disability, sickness and accident. There is also health insurance regulated by the Law on Health Care Services. A separate premium is paid for each of these insurances.
Insurance for persons running a non-agricultural business activity
Persons running business activity are subject to retirement, disability, accident and health insurance from the date of commencement of business activity until the date of its termination. Sickness insurance is voluntary. The contribution for sickness insurance is 2.45% of the basis of assessment. However, you should remember to pay social insurance contributions on time because otherwise you will be excluded from sickness insurance. The exception is the period of suspension of business activity – then the entrepreneur does not pay contributions for insurance. These rules also apply to persons cooperating with persons running business activity. The cooperating person is the spouse, own children, children of the second spouse, adopted children, parents, stepmother and stepfather, if they cooperate in running the business activity or in executing an agency agreement or a commission agreement.
As of January 1, 2010 the minimum salary is PLN 1317 and the minimum contribution basis is PLN 395.10. This amount can be reduced if the business activity was commenced and completed during a calendar month or if the person running the business activity was incapacitated for work for part of the month and fulfills the conditions for sickness benefit.
If a person who starts running a business declares an amount of 30% of the minimum wage for retirement and disability insurance, the same basis will be used to calculate the premiums for accident and sickness insurance (if he/she joins it). Health insurance premiums are calculated according to general rules. It cannot be reduced as in the case of pension and disability insurance. A self-employed person pays contributions for social and health insurance by the 10th of the month for the previous month. In the case of persons who also pay contributions for others, they should pay them by the 15th of a given month for the previous month.
Insurance of persons who start running a business
There is a relief for people who are just starting their business activity. They can pay social insurance premiums from a lower base. This relief is valid for a period of two years. These are preferential contributions. They can be used by persons who run a non-agricultural business activity, partners in a civil partnership, registered partnerships, limited partnerships and partners, one-man partners in a limited liability company, persons performing so called freelance profession, e.g. a lawyer, a doctor, artists and creators. At the same time they are subject to retirement pension, disability pension, accident, health insurance and voluntary sickness insurance.
Employee insurance depends on the contract under which they are employed. In the case of persons employed under an employment relationship, they are subject to all types of insurance: retirement, disability, sickness, accident and health. The employer should report the employee to the insurance within 7 days from the date of the employment relationship.
A person employed on a contract of mandate, who has no other title to insurance, is subject to mandatory payment of contributions for retirement pension, disability pension and health insurance, and voluntary sickness insurance. All contractors who are subject to retirement and disability pension insurance, are also obligatorily subject to accident insurance.
As regards sickness insurance, a contractor may join it at any time and be covered by it as of the date indicated on the ZUS ZUA form. If a contractor is a pupil or a student under 26 years of age – they are not subject to social security or health insurance. If a contractor turns 26 during the term of the contract, he should be reported for insurance on his 26th birthday.