In 2024, social insurance contributions (ZUS) bases will increase for entrepreneurs in Poland. Analysts from inFakt estimated the minimum contribution base for the upcoming year and what specific salary would allow an employee to receive a partial exemption from ZUS.
The projected average gross salary in the national economy in 2024 has been set at 7824 PLN. According to the regulations, 60% of this amount accounts for the basis for calculating social insurance contributions for entrepreneurs. This means that in 2024, it cannot be lower than 4694.40 PLN.
ZUS contributions in 2024 will total 1600.27 PLN, distributed across various categories, including retirement (916.35 PLN), disability (375.55 PLN), sickness (115.01 PLN), accident (78.40 PLN), and the labor fund (115.01 PLN).
For entrepreneurs, there is a limit on the upper boundary of the monthly contribution base and it cannot exceed 250% of the projected average salary in the national economy. In 2024, this limit will be 19560 PLN. The maximum amount of contributions that an entrepreneur could deduct to ZUS in 2024 would be 6668 PLN per month.
It must be reminded, however, that on November 29, 2023, the Supreme Court ruled that ZUS has the right to verify the contribution base of the entrepreneur in a situation when they declared a contribution base that is not reflected in their revenue, especially in their early business period.
This leniency could be limited as it gives ZUS the capacity for a subjective evaluation, which may result in lower contribution bases for entrepreneurs.
The minimum basis for ZUS, known as “small ZUS”, will be raised twice in 2024, first on January 1st, and then again on July 1st. The basis for calculating social insurance contributions for beginning entrepreneurs is 30% of the minimum salary, which as of January 1, 2024, will be 4242 PLN and from July 1, 2024 – 4300 PLN. Currently, the minimum salary is 3600 PLN, which means that the small ZUS will increase by 20% in 2024.
ZUS contributions for employees are paid in the same percentage as for entrepreneurs, with the difference that the contribution base is the employee’s gross salary, and a part of it is paid by the employer. The ZUS contribution base for employees is limited annually and cannot be higher than the 30 times projected average salary. This limitation applies only to retirement and disability insurance contributions. The projected salary is 7824 PLN, so the restriction on the annual base for retirement and disability insurance contributions in 2024 will be 234, 720 PLN.
If an employee has a gross salary of 23,472 PLN per month, they will not have to pay the retirement (9.76%) and disability (1.5%) contributions from November 2024. The monthly saving in such a case for the employee will be 2,642.95 PLN.
– Piotr Juszczyk, Chief Tax Advisor at inFakt.
