The so-called small ZUS is to cover more than 173,000 sole proprietorships whose average monthly revenue does not exceed 2.5 times the minimum wage.

Currently, entrepreneurs pay the same ZUS contribution regardless of the size of their revenue. Thanks to the changes, people running sole proprietorships whose average monthly revenue does not exceed 2.5 times the minimum wage—currently PLN 5,250—will be able to pay reduced social insurance contributions proportional to their revenue.

– Anyone who decides to pay lower contributions should remember that less money will be credited to their pension account during this period, which may result in a lower pension in the future – explains Iwona Kowalska, ZUS press spokesperson in Lower Silesia.

Are there more benefits for entrepreneurs?

“Small ZUS” is not the only benefit for entrepreneurs. Anyone who is just starting their own business or who had a break in running one of at least 60 months can also take advantage of the “start-up relief.”

Are there any disadvantages to the “start-up relief”?

However, it is important to remember that while using this benefit, the entrepreneur is not covered by social insurance. No one pays contributions on behalf of the business owner, so if, while using the “start-up relief,” they fall ill, care for a child or another sick family member, or have a child, they will not receive:

  • sickness benefit
  • rehabilitation benefit
  • maternity benefit
  • care benefit.

(That is, benefits granted under sickness insurance).

– If incapacity for work arises while the start-up relief is in effect, the entrepreneur may have difficulty obtaining a disability pension if more than 18 months have passed since their last period of insurance. They will also not be entitled to benefits for incapacity for work caused by an occupational accident or occupational disease, payable under accident insurance – warns Iwona Kowalska.

What does the decision to use preferential contributions entail?

The decision to use preferential contributions affects the amount of benefits granted under sickness and accident insurance, as they are calculated on the basis used to determine sickness or accident insurance contributions. If an amount equal to 30% of the minimum wage is declared as the contribution base, that amount will be used to calculate the benefits due.

Therefore, the decision to use both “small ZUS” and the “start-up relief” should be made consciously, remembering that this is our choice, not an obligation. And that this decision does affect entitlement to, and the amount of, social insurance benefits.