A fixed limit of sickness insurance contributions from January

The Act of 26 July 2013 amending the Act on the social insurance system and certain other acts introduces a considerable simplification, because starting from January 2014 the limit of social insurance contributions will not change every quarter. Most importantly, this limit is to apply throughout the year.

The basis for the contribution for voluntary sickness insurance may not exceed 250% of the forecast average remuneration for a given year. Currently, this limit is also 250%, but it refers to the average salary for the previous quarter.

The introduced modifications will be a great help, especially for entrepreneurs who will not have to wait and check the maximum basis for the calculation of sickness insurance contributions every quarter.

Importantly, a contribution payer (as a rule, an entrepreneur) employing persons in his company on the basis of civil law contracts (mandate contract, contract for specific work) must keep an eye on the limit of the limit of sickness insurance contributions not only paid for himself, but also for employees. The change will therefore also benefit some employers.

The limit of the calculation basis for contributions to voluntary sickness insurance does not apply to employees employed under an employment contract. Their contributions are compulsory and their amount is determined by the amount of their income.