Contribution Holidays Still in 2024

On June 7, 2024, the President signed an amendment to the Act on the Social Insurance System and certain other acts, thereby introducing contribution holidays for entrepreneurs. The law will come into force on the first day of the month following four months after its publication, i.e., on November 1, 2024.

The justification for the bill states that social insurance and related contributions are among the most sensitive topics in discussions about doing business in Poland, and the social insurance system should reflect the principles of social justice. The proposed solution aims to provide significant support for the microenterprise sector registered in CEIDG, without putting the Polish social insurance system at risk.

What Are Contribution Holidays?

Under the so-called contribution holidays, entrepreneurs will be exempt from paying pension, disability, and accident insurance contributions for one month each year, at a time of their choosing. During this month, these contributions will be covered by the state budget. Notably, if the entrepreneur was voluntarily covered by sickness insurance in the month of application and the preceding month, this contribution will also be covered. However, contributions to the Labor Fund and Solidarity Fund may also be waived—but unlike the others, they will not be covered by the state budget.

Who Qualifies and Under What Conditions?

To benefit from contribution holidays as an entrepreneur, you must:

1. In the calendar month preceding the month of application, have no more than 10 people (including yourself) registered for pension, disability, accident, or health insurance;
2. In the two calendar years preceding the year of application, either not generate income from non-agricultural business activity, or generate income in at least one of those two years not exceeding the PLN equivalent of 2 million euros (calculated using the average exchange rate published by the National Bank of Poland on the last working day of the calendar year preceding the year of application);
3. Not conduct non-agricultural business activity for a former employer (for whom you performed the same tasks as an employee) in the calendar year prior to applying, or in the year you started the business;
4. In the month preceding the application, be covered by pension, disability, and accident insurance due to your non-agricultural business activity.

How to Apply for Contribution Holidays?

Entrepreneurs can only be exempted from paying contributions upon request—this must be submitted through an electronic form available on the ZUS platform. The exemption will apply only to the entrepreneur—not to employees or cooperating persons, for whom contributions must still be paid under standard rules.

When to Apply for Contribution Holidays in 2024?

Applicants must submit their request in the month preceding the month for which they wish to be exempt from contributions. Therefore, if an entrepreneur wants to benefit from the contribution holiday in 2024, the application must be submitted in November.

For the month covered by the exemption, the entrepreneur is still obligated to submit a settlement declaration and individual monthly reports by the 20th of the following month.

If you need assistance with issues related to the Social Insurance Institution (ZUS) or would like to learn more about available contribution preferences, feel free to contact us remotely: https://atl-law.pl/prawo-pracy-sprawy-zus/