At the end of the first half of 2024, 622,300 active payers were in debt to the Social Insurance Institution (ZUS), representing a decrease of 11.4% year on year. Simultaneously, data shows that the overall debt on the accounts of these types of payers increased by 5.1% annually, reaching the value of PLN 19.6 billion. Meanwhile, in the first half of 2024, the number of installment agreement applications decreased by 1% year on year, totaling a little over 49,300. 26,800 of these agreements were made during this period, which was 0.5% more than in the corresponding period of 2023. Experts commenting on these figures consider this to be the effect of an improved job market situation, resulting from better economic conditions in the country.
By the end of the first half of 2024, 622,300 active payers had debt to the Social Insurance Institution (ZUS), a decrease of 11.4% year on year. In the respective period of the previous year, there were 702,600 entities with arrears to the office. These figures include debt amounts of at least PLN 0.01. The decrease is interpreted by experts as a harbinger of a strengthening economic situation.
“Pension, disability and sickness insurance contributions amount to a total of PLN 250 billion. Therefore, the debt of these payers is a very small part of the burdens paid annually by employees, not to mention what employers still pay. Overall, it’s not a big deal that so many entities are in arrears,” notes Prof. Stanisław Gomułka, former Deputy Minister of Finance.
However, Jeremi Mordasewicz of the Confederation Lewiatan interprets these data as an improvement in the economic situation, although we don’t currently have very strong economic growth. He also notes that economic growth of 2-3% is an achievement worth noting and appreciating, even though a few years ago this situation would not have been acknowledged since results were typically around 3-4%.
“Everything is relative after such calamities as the pandemic or Russia’s aggression against Ukraine, and the associated economic shocks. I wouldn’t like it to sound overly optimistic, but in such a challenging situation, we could have expected an increase in the number of indebted payers,” adds Jeremi Mordasewicz.
On the other hand, legal advisor Aldona Międlar-Adamska from Ars AEQUI law firm also notes that official data is a positive signal, but the problem still concerns over 622,000 companies. The decrease in the number of indebted payers could result from an improvement in financial conditions, which in turn could be the effect of more favorable economic conditions, increased business revenues, and government actions supporting this sector.
“A key factor is also the intensification of ZUS’s debt collection activities. This includes negotiations on installment payment plans, which could prompt some debtors to settle their arrears. Legislative changes, such as new contribution payment regulations, reductions, or more flexible forms of settlements, could have also improved the situation,” adds Aldona Międlar-Adamska.
The disclosed data also shows that as of June 30, 2024, the total debt amount for all funds in the active payer accounts with the Social Insurance Institution was PLN 19.6 billion. This is 5.1% more than a year earlier when it was PLN 18.6 billion. However, this increase doesn’t alarm anyone.
“This is largely due to wage growth and inflation. We also have considerable employment of foreigners, which has led to an increase in contribution payments. These are not significant numbers, but still they are in the hundreds of thousands, so there are enough new employees to make the situation generally beneficial from ZUS’s perspective,” explains Prof. Stanisław Gomułka.
Jeremi Mordasewicz emphasizes that there has been a certain, albeit small, improvement in the economic situation. As a result, businesses are dealing with social security contributions (ZUS) and taxes as a matter of priority. In other cases, serious consequences can occur, so these are payers who settle such obligations first if they have financial liquidity.
“Entrepreneurs may have difficulty paying even smaller amounts, which leads to accruing interest and increasing total debt. Such a situation has serious consequences for the social security system. The increase in debt can directly lead to a deficit in the system, which in turn may require a hike in contributions or a reduction in benefits,” underlines legal advisor Aldona Międlar-Adamska.
The expert from Ars AEQUI also points out an apparent paradox. Despite the decrease in the number of debtors, the total amount of arrears is growing. This means that those who still remain in debt have on average taken on more obligations. There are several reasons for this situation. Primarily, financial problems of some businesses that already faced previous challenges are worsening and leading to higher arrears.
“The prospects for the future depend on many factors, including the development of the economic situation, actions taken by ZUS, and potential legislative changes. There is a risk that the decrease in the number of debtors may mask the deepening financial problems of some businesses, which might negatively affect the stability of the social security system in the long run,” assesses Aldona Międlar-Adamska.
According to ZUS data, in the first half of 2024, the number of installment agreement applications totaled 49,300. That’s 1% less than in the first half of 2023, when there were 49,800. But in the first six months of this year, 26,800 such agreements were made. This, on the other hand, is 0.5% more than in the respective period of 2023 when 26,700 were recorded.
“This is a very small amount compared to the total number of employees. This could be interpreted as a result of payers not having grounds to submit such applications. Work on this matter does involve certain difficulties, as it deeply affects companies. I would like to stress this very clearly, that the legislator’s intention was never for this to lead to their demise,” says Prof. Stanisław Gomułka.
Added to this, Jeremi Mordasewicz says it is very delicate material. In the expert’s opinion, ZUS approaches these procedures flexibly, but there will always be businesses that will feel bitter about how they were treated. The authority also often faces unfair assessments of its actions, even though employees have the awareness that a company’s bankruptcy doesn’t benefit anyone.
“If ZUS was too flexible with such procedures and forgave all arrears in the form of overdue contributions, such funds couldn’t be recovered. The office can’t, of course, succumb to political pressure that if a mine or a factory or a service company doesn’t pay dues, it should be supported indefinitely, because after all, jobs are priceless. That can’t be the case,” adds Mordasewicz.
Meanwhile, Aldona Międlar-Adamska assesses that the decrease in applications could suggest improved payer situations or better financial planning, which reduces the need to spread obligations into installments. The increase in the number of agreements on first glance indicates more effective negotiations and consideration of applications by ZUS, and better business adjustments to the economic situation.
“Establishing installment agreements helps payers manage liquidity and avoid late penalties. For ZUS, it’s a way to receive payments that would otherwise be difficult to recover. Establishing a larger number of agreements is beneficial for ZUS as it improves financial liquidity and supports the stability of businesses,” concludes the expert from Ars AEQUI law firm.
Source: https://managerplus.pl/w-gospodarce-cos-drgnelo-spada-liczba-polakow-zadluzonych-w-zus-e-jednak-ogolny-dlug-wciaz-rosnie-91563
