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Reduction, proportional to income, of social security contributions for small entrepreneurs – this is the result of a bill that the Senate passed Friday without amendments. "Little ZUS" must cover more than 173,000 sole proprietorships whose average monthly income does not exceed 2.5 times the minimum wage.
An Act to amend certain acts to reduce the social security contributions of natural persons doing business is supported on a smaller scale by 64 senators, seven against, 18 arrested.
What's Changing
Minister of Entrepreneurship and Technology Jadwiga Emilewicz argued during the legislative process that this law realistically addresses the needs of entrepreneurs. It lowers premiums, especially, those who earn the lowest income.
Currently, contractors pay the same ZUS premium regardless of the amount of income. The law passed weekly by the Sejm and passed without amendments by the Senate is to adjust the burden imposed by entrepreneurs on social security contributions to their financial capabilities.
Owing to the changes, those who run a sole proprietorship whose average monthly income does not exceed 2. 5 times the minimum wage (5.250 PLN in 2018), they will be able to pay reduced social security contributions in proportion to the income
The intention of the settlement, as explained the deputy head of the Ministry of Entrepreneurship and Technology Mariusz Haładyj: development of the spirit of business, stimulation of the professional activity, limitation of the so-called gray area and improve the survival capacity of enterprises. MPiT, which prepared the project, relies on the fact that the new regulation will come into force on 1 January 2019.
Amount of contributions
Small ZUS is to supplement existing solutions such as, for example, the start-up aid or undeclared activities
Contributions are designed to correspond to the current preferential ZUS for persons starting (it is 200 PLN of social insurance contributions for two years ), and then increase proportionately – from about 16 grams for each additional zloty incomes up to about 850 PLN, the amount of the current ZUS
In each case, an amount compulsory PLN 319.94 for health insurance must be added to this amount. These are calculations based on ratios from 2018. – Every year, they will change, depending on the amount, among other things, the minimum wage – said the deputy head of the Ministry of Culture and National Heritage.