The Polish government wishes to introduce the possibility of a one-month “holiday” from contributions to the Social Insurance Institution (ZUS) for micro-entrepreneurs from October. This will cost the budget up to PLN 1.73 billion in 2024.
The possibility for micro-entrepreneurs to be exempted from paying ZUS contributions for one month is provided for in the draft amendment to the Act on the social insurance system and certain other acts. “Contribution holidays” are to be a response to the increasing public and legal burdens on entrepreneurs.
The draft assumes that entrepreneurs conducting one-person business activity will be able to submit an application to the Social Insurance Institution (ZUS) for exemption from paying contributions for a selected one calendar month in each calendar year. This concerns contributions to compulsory pension and disability insurance, accident insurance, sickness insurance, the Labour Fund and the Solidarity Fund.
“In the month selected by the entrepreneur, social insurance contributions will be paid from the state budget, in the amount constituting the contribution assessment basis”, says the ‘Regulatory Impact Assessment’.
On the basis of ZUS calculations, it is stated that the cost of this solution for the state budget in 2024 will reach a maximum of approximately PLN 1.73 billion. Over the next 10 years, the total projected cost to the budget is PLN 24.97 billion.
The introduced relief consisting of a temporary reduction of the costs of conducting business activity will contribute to the financial relief of entrepreneurs. The solution is aimed at reducing the scale of suspension and closure of business activities.
The government has already sent the draft law for consultation to employers’ organisations and trade unions. The Council for Social Dialogue and the Office of Competition and Consumer Protection are also expected to express their opinions.
The draft law is planned to enter into force on 1 October 2024. The deadline is due to the need to provide adequate time for the adaptation of ZUS’s ICT systems.
Arkadiusz Słomczyński