ZUS Contribution Holidays: Applications Now Open!

From November 1, 2024, entrepreneurs in Poland can take advantage of the so-called ZUS holidays, a one-time exemption from paying social insurance contributions for a selected month during the year. This relief can provide tangible savings, but access to it requires meeting specific conditions.

Requirements to Qualify for ZUS Holidays

To benefit from the relief, an entrepreneur must:

• Be registered in CEIDG (Central Registration and Information on Business) and employ no more than nine employees.
• Be subject to social insurance contributions (retirement, disability, accident insurance) for at least one day in the month preceding the application submission.
• Have not exceeded an annual revenue equivalent to €2 million in the past two years.
• Not perform business activities for a former employer in the current or previous year.

 

Who Can Apply?

The ZUS holiday program is available to individuals conducting sole proprietorships. Excluded from eligibility are partners in general partnerships, limited partnerships, and single-member limited liability companies.

 

What Do ZUS Holidays Cover?

The exemption includes contributions for:

• Retirement insurance,
• Disability insurance,
• Accident insurance,
• Voluntary sickness insurance,
• The Labor Fund and the Solidarity Fund.
•  

However, the exemption does not apply to health insurance contributions, which the entrepreneur must still pay.

Tax Benefits

The savings from not paying social insurance contributions depend on the amount of contributions paid. For example, for the minimum contributions under “Large ZUS” in 2024, the savings will amount to PLN 1,485.31 (for those not paying sickness contributions) and PLN 1,600.32 (for those paying health contributions).

Entrepreneurs should note, however, that the actual tax benefit will be smaller. Unlike health insurance contributions, social insurance contributions can be treated as tax-deductible expenses. The lack of this natural expense in the KPiR (Simplified Tax Records) will increase the tax base, thus reducing the net benefit of the ZUS holidays.

Those benefiting from the so-called “Small ZUS” may also save with the contribution holidays, though the savings will be minimal. In some cases, the costs associated with verifying eligibility and submitting the application may exceed the financial benefits.

Importantly, utilizing the ZUS holidays will not negatively affect future pension or allowance amounts, as the state budget will cover the missing contributions.

 

Where and When to Submit Applications

Applications must be submitted electronically via the PUE ZUS platform. In 2024, the relief applies to December, meaning applications must be submitted by November 2024. Applications submitted after this deadline will disqualify entrepreneurs from receiving the benefit for 2024. Applications should be submitted a month before the month for which the contribution holiday is planned. Entrepreneurs can apply again in December to take advantage of the holidays for January 2025. The ZUS holiday can only be used once per year.

 

Supporting Small Entrepreneurs

The new regulations aim to support small businesses by enabling them to reduce their operating costs during a selected period of the year. This initiative is designed to improve financial liquidity for companies during more challenging months.