The health contribution is calculated slightly differently depending on the form of taxation, but it is one of the expenses that all entrepreneurs regularly incur. The government has declared that the current way of calculating it must change. Find out what the ruling parties are proposing.
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Will the old system of settling health premiums return? We check what the government has prepared for entrepreneurs
Published July 26, 2024 09:58
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How has the health premium changed in recent months?
To begin with, let's recall how the way health premiums have changed over the past few years. Until 2021, entrepreneurs paid a flat 9% contribution on a minimum of 75% of the average salary. What's more, 7.75% of the amount was tax deductible.
Since the introduction of the so-called "Polish Deal," entrepreneurs settling their accounts with the tax authorities on a general basis are required to pay a health contribution of 9% on income. For those taxed on a flat rate, the rate is 4.9%. Flat-rate taxpayers, on the other hand, depending on income, pay up to nearly PLN 1,300 a month for social security. In addition, the health contribution cannot be deducted from tax.
Changes in health premium calculations - pre-election promise or real change?
There is no doubt that changes in the calculation of health premiums have become the real bane of entrepreneurs. Interestingly - they have affected not only them, but also ZUS. Chaos in the legislation has caused numerous problems on the institution's side as well. For this reason, changes in the calculation of the health premium have become one of the hottest election promises. And one of the most eagerly awaited to be fulfilled.
Wondering how to account for contributions or what form of taxation to choose? You will find a number of reliable and up-to-date information on the portal for entrepreneurs Firmove.
New size of health contribution - changes as early as January 2025
The new government has put forward a proposal developed by the Finance Ministry. Back in March, it was announced that the flat-rate health contribution for general-paying entrepreneurs would be reinstated as of January 1, 2025. The new government proposed that its amount should be 9% of 75% of the minimum wage. This would, of course, bring the health contribution to a fixed value and would not have to be settled every month.
The case is slightly different for entrepreneurs who are taxed on a straight-line basis. The Ministry of Finance has proposed:
● a health contribution of 9% of 75% of the minimum wage for those whose monthly income does not exceed twice the average wage;
● a health contribution of 9% of 75% of the minimum wage plus 4.9% on the excess of earned income over twice the average wage for those whose monthly income exceeds twice the average wage.
The changes are also expected to extend to flat-rate entrepreneurs. Those with an income below four times the average wage will pay a health contribution of 9% of 75% of the minimum wage. And if their income exceeds the indicated threshold, then they will have to add to the health premium an amount of 3.5% on the excess over four times the average wage.
A change in the rules for calculating health premiums has been awaited by Polish entrepreneurs for many months. Will the new government's proposals come into effect as they are known today? Of this we cannot be sure. However, we can only hope that the new rules will be beneficial to business owners.
