Social security contributions for entrepreneurs are growing

The beginning of the new year does not always bode a good mood for entrepreneurs, mainly due to the increases that await them. What makes employees happy, i.e. the increase in the minimum wage, means for entrepreneurs the necessity to pay higher ZUS contributions. The changes concern both new entrepreneurs who pay ZUS contributions on a preferential basis, and those who are not affected by small ZUS.

Preferential social security contributions

The increase in the minimum wage from PLN 1,750 gross in 2015 to PLN 1,850 in 2016 resulted in an increase in ZUS preferential contributions. Why? As the basis for calculating social contributions for new entrepreneurs, who can benefit from lower rates than generally applicable for a period of 24 months, is precisely the minimum wage - exactly 30% of the minimum wage.

The table below shows how the minimum social security contributions for entrepreneurs who settle on a preferential basis have changed.

Type of insurance	Accrual Dimension	Contribution amount in 2015 (base PLN 525)	Contribution amount in 2016 (base PLN 555)
retirement	19,52%	PLN 102.48	PLN 108.34
disability	8%	PLN 42.00	PLN 44.40
sick leave - voluntary	2,45%	PLN 12.86	PLN 13.60
accident	1,8%	9.45 PLN	PLN 9.99

ZUS contributions - standard basis

When calculating social security contributions (ZUS) for entrepreneurs who pay them on general terms, the basis of assessment is 60% of the average national remuneration. The amount of remuneration is specified at the end of the year in the Budget Act. As it was established, in 2016 it amounts to PLN 4,055. The basis for the calculation of general social security contributions will therefore be PLN 2,433. This means that, compared to the previous year, it increased by PLN 57.60

The table shows a comparison of the contribution assessment base in 2015 and 2016.

Year	Average monthly salary	Contribution basis (60%)	Sum of social security contributions (including voluntary sickness insurance)
2015	PLN 3,959.00	PLN 2,375.40	PLN 754.67
2016	PLN 4,055.00	PLN 2,433.00	772.96 PLN

Health insurance premium

The amount of the health insurance premium in 2016 results from the Central Statistical Office data on the average salary in the fourth quarter of 2015. Because 75% of this remuneration is the basis for calculating the health insurance contribution.

Year	Average monthly salary in the fourth quarter of the previous year	Contribution basis (75%)	Contribution amount for health insurance
2015	PLN 4,139.42	PLN 3,104.57	PLN 279.41
2016	PLN 4,280.80	PLN 3,210.60	PLN 288.95

ZUS contributions - summary

Based on the calculated contributions, we can see that in 2016 a new entrepreneur will pay about PLN 10 more per month for both social and health contributions, i.e. he will pay ZUS more than PLN 240 per year than in 2015.

As for entrepreneurs who are not entitled to pay premiums in a preferential amount, an increase in the base calculation results in an increase in social security contributions by PLN 18.29 per month. Together with the change in the amount of the health insurance contribution, payers must pay for themselves less than PLN 350 more than in the previous year.