Healthcare contribution for entrepreneurs: current and new for 2025

In Poland, every entrepreneur has a permanent financial obligation: healthcare contribution. The method for calculating the premium has been revised with the latest amendments to the so-called Polish Deal. Additionally, the Ministry of Finance has announced upcoming changes that are expected to take effect in 2025.

Healthcare contribution – current regulations

Note that as of January 1st, 2022, the deductibility of health insurance premiums from personal income tax has been eliminated, and the rules for determining the basis for calculating the health insurance premium for entrepreneurs have changed.

The change in the rules means that income from business activities becomes the basis for calculating the health insurance premium for those paying income tax according to the rules set by the tax scale, flat tax, and those paying income tax on qualified intellectual property rights. This income, for each calendar year, is calculated as the difference between income, as defined in the Personal Income Tax Law, and the costs incurred to obtain such income, following the same law.

In addition, the amount of pension, disability, sickness, and accident insurance premiums paid in a given year, if not included as deductible expenses, is deducted from this income.

The health insurance premium corresponds to 9% of the base amount calculated by statutory rules. Note that the contribution cannot be less than 9% of the minimum wage established at the beginning of the relevant contribution period.

In other words, when preparing the return for January 2024, the lowest value of health contribution will be set at the level of the minimum wage applicable in 2023 (3,490.00 PLN).

Deadlines for payment of contributions

Contribution payers send the settlement declaration (ZUS DRA), monthly personal reports (ZUS RCA, ZUS RSA, ZUS RPA), and pay contributions for the month:

• by the 5th day of the following month – budgetary units and local government budgetary establishments,
• by the 15th day of the following month – taxpayers with legal personality, such as capital companies (joint stock companies and limited liability companies), cooperatives, associations, foundations, local government units, universities, churches, Social Security, ZOZ, etc.,
• by the 20th of the following month – other premium payers, i.e., payers who pay only premiums for their insurance (e.g., partners of companies), entrepreneurs, and other unincorporated entities that employ other insured persons, including partnerships (i.e., general partnerships, partnerships, limited partnerships, limited joint-stock partnerships).

Healthcare contribution in 2025 – fixed caps of 9% and 4.5%

If the proposed changes go into effect, 2025 will bring a new method of calculating the contribution, covering both entrepreneurs on the tax scale and those on the flat tax and lump sum.

A fixed threshold for the health contribution will be introduced for those settling personal income tax (PIT) and conducting business according to both of the aforementioned tax settlement forms. This means that it will be fixed absolutely, at 9% of the amount equivalent to 75% of the minimum wage. Calculations show that this will amount to about PLN 310 per month in 2025.

This is a significant change because, until 2024, entrepreneurs using the flat tax will pay a contribution of 4.9% on the income that was earned in the preceding month. However, the amount cannot be less than 381.78 PLN.

“Flat-rate” taxpayers, i.e. those who settle PIT and conduct business on a flat-rate basis, when earning monthly income up to four times the projected average salary, will also be required to pay a health contribution of 9% of 75% of the minimum salary.

Above four times the projected average salary, there will be an obligation to pay a surcharge on the minimum contribution (calculated based on 9% of 75% of the minimum salary) of 3.5% on the excess above four times the projected average salary.

The proposed changes apply only to businesses and are likely to take effect on January 1st, 2025.