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Contribution calculation basis - the amount of ZUS contributions of the entrepreneur and the employee

Paying ZUS contributions, both for yourself and for your employees, is the responsibility of every entrepreneur. Failure to comply with this obligation has certain consequences, including a fine. How much are ZUS contributions for entrepreneurs and employees? It depends on the base, the height of which depends on several factors. Importantly, the calculation basis for social insurance contributions (retirement pension, disability pension, sickness, accident) differs from the calculation basis for health insurance.

Contribution basis for beginning entrepreneurs

An entrepreneur who sets up a business may take advantage of the so-called small ZUS. This means that it pays preferential ZUS contributions for 24 months. In this case, the contribution base depends on the minimum wage applicable in a given year. More specifically, the base for preferential social contributions is 30% of the minimum wage. In 2021, the minimum wage is PLN 2,800.

In 2021, the base for preferential social contributions is PLN 840 (PLN 2,800 x 30% = PLN 840). From this amount, contributions are calculated using the appropriate percentage.

Full ZUS contributions for entrepreneurs

The percentage of social contributions is the same for entrepreneurs paying preferential contributions and full ZUS. However, they are calculated from other bases. Entrepreneurs who cannot benefit from preferential contributions pay them in a higher amount. In their case, the basis for the amount of contributions depends on the forecast average remuneration for work for a given year. The basis for ZUS contributions is 60% of this amount.

In 2021, the forecast average remuneration for work is PLN 3,155.40 (PLN 5,259 x 60%). This amount is the basis for the assessment of contributions.

The health premium for all entrepreneurs is the same

Regardless of whether the entrepreneur pays preferential or full contributions, everyone is obliged to pay the health insurance contribution. The basis for calculating health insurance contributions is the same for all entrepreneurs, regardless of the basis on which they pay social contributions.

The basis for calculating health insurance contributions depends on the average salary in the business sector, including the payment of profit in the fourth quarter of the previous year. Information on this amount is provided by the Central Statistical Office.

The basis for the health insurance contribution is 75% of the average salary, i.e. PLN 4,242.38 in 2020 (75% x PLN 5,656.51). The value of the health insurance contribution that all entrepreneurs must pay in the current year is 9% of this base, i.e. PLN 381.81. The tax deductible health contribution is 7.75% of the tax base, i.e. PLN 328.78.

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ZUS contributions per employee

The contribution basis for an employee is not a top-down amount. The amount of contributions depends on the gross wage he receives. However, the regulations guarantee a minimum wage for work. Importantly, part of the contributions is paid by the employee (i.e. they are deducted from the employee's salary), and the rest is paid by the employer from his own resources, in addition to the salary paid to the employee.

Example 1.

Jan Kowalski is employed on the basis of an employment contract with a minimum wage in force in 2021, i.e. PLN 2,800 gross. What will be the amount of contributions taken from the employee's remuneration, and how much will be the actual cost of employing the employee for the employer?

The calculation of ZUS contributions is presented in the table below:

Name of contributions	Contribution covered by the employee	Contribution paid by the employer
retirement	PLN 2,800 x 9.76% = PLN 273.28	PLN 2,800 x 9.76% = PLN 273.28
disability	PLN 2,800 x 1.50% = PLN 42.00	PLN 2,800 x 6.5% = PLN 182.00
sick	PLN 2,800 x 2.45% = PLN 68.60	-
resultant	-	PLN 2,800 x 1.67% = PLN 46.76
labor Fund	-	PLN 2,800 x 2.45% = PLN 68.60
FGŚP	-	PLN 2,800 x 0.1% = PLN 2.80
health	2416.12 x 9% = PLN 217.45	-
TOTAL	PLN 601.33	PLN 573.44