On November 24, 2017, the Polish Parliament accepted draft amendments to the Act on the social insurance system that will liquidate binding limits on pension and disability insurance contributions. Currently, the annual basis for pension and disability insurance contributions cannot be higher than the amount equal to 30-times expected average remuneration in the national economy for the given calendar year (in 2017 the limit was PLN 127.890). After reaching the limit, pension and disability insurance contributions were no longer paid.

As a result of the limit liquidation, pension and disability insurance contributions will be paid on the whole remuneration received by the employee. The new regulations will significantly increase the additional costs of employment borne by employers and will lower the net remuneration of the employees involved.

Below, we present the overview tables that show the essential changes in the amount of pension and disability insurance contributions for an exemplary remuneration of PLN 30.000 gross before and after the amendments.

Remuneration

PLN 30.000 monthly

Contributions (PLN)

Pension (19,52%)

Disability (8%)

Employee

(9,76%)

Employer

(9,76%)

Employee (1,5%)

Employer

(6,5%)

before

after

before

after

before

after

before

after

I

2.928

2.928

2.928

2.928

450

450

1.950

1.950

II

2.928

2.928

2.928

2.928

450

450

1.950

1.950

III

2.928

2.928

2.928

2.928

450

450

1.950

1.950

IV

2.928

2.928

2.928

2.928

450

450

1.950

1.950

V

770

2.928

770

2.928

118

450

513

1.950

VI

0

2.928

0

2.928

0

450

0

1.950

VII

0

2.928

0

2.928

0

450

0

1.950

VIII

0

2.928

0

2.928

0

450

0

1.950

IX

0

2.928

0

2.928

0

450

0

1.950

X

0

2.928

0

2.928

0

450

0

1.950

XI

0

2.928

0

2.928

0

450

0

1.950

XII

0

2.928

0

2.928

0

450

0

1.950

Total:

12.482

35.136

12.482

35.136

1.918

5.400

8.313

23.400

Remuneration

PLN 30.000 monthly

Total pension and disability insurance contributions

paid to ZUS (PLN)

Currently

As a result of amendments

Employee

14.400

40.536

Employer

20.795

58.536

These amendments are currently progressing through the Senate. The planned date for these new regulations to come into force is January 1, 2018. However, several institutions, including the Social Insurance Office, are requesting for a postponement of their date of entry into force.

Regarding the number of questions that arise in this matter, we will be happy to discuss the effects of the new regulations for your organization and the potential steps that may be taken to mitigate the resulting risks.