Entrepreneurs who pay for compulsory social security contributions from their own businesses need to prepare additional 127 PLN for them. This is the result of a dynamic increase in average wages. Larger premiums will also be paid by people who start work and use preferences for ZUS payments.
The only group that will benefit from the dynamic growth of wages, and in particular minimum labor costs, are small business entrepreneurs who have been in effect since the beginning of 2019 and are called by the law: small business ZUS.
Premium increase of 127 zlotys per month
Increasing contributions to compulsory social security for job-holders is the result of higher salaries. The basis for the minimum level of pension, disability and other contributions depends on the amount of compensation. In the case of standard contributions, the basis is 60 percent. the average remuneration foreseen for a given year, and in the case of premium paid under preferential terms – the amount of the minimum remuneration for a given year.
Such a prognosis is included in the draft budget law for 2020, which has already been approved by the Council of Ministers. It is anticipated that the average salary in 2020 will increase from PLN 4,765 (2019 forecast, according to which entrepreneurs will determine the amount of contributions for 2019) to 5,227 PLN, or nearly 10%. In practice, this means that the minimum social security contributions for entrepreneurs will increase by 9.7 percent, and a total of 127 zlotys.
The situation was the same as a year ago, and the burden on business owners at ZUS was also a record in history, though it was just over 88 zlotys.
For most small businesses, especially self-employed, there is a huge additional burden – no one increases machine revenue, they have to make additional business costs by increasing their efforts to get the right amount of profit.
ZUS's loads will also increase their initial business
The fact is that some people who run their own business have the right to make use of the preferential payment rules. For a long time, entrepreneurs have taken the first steps in their own business, and starting from 2019, they also receive little business. For both groups, the amount of ZUS contribution is directly or indirectly dependent on the minimum fee for work. This year's new year will also record a record growth. How far we will reach, we will finally find out, only in September,
but certainly not less than 2,450 PLN (compared to 2,250 PLN at this time), which means an increase of 8,9%, which is not lower than the contributions of non-privileged business owners.
What is the average monthly gross earning?
It will also increase the contribution of people who run the business in the first two years. This will increase the number of people who will be eligible for ZUS's disbursement on a minimal basis of estimates depending on the average fee rather than the actual turnover of their business activities.
This is not the end. Of course, the compulsory health insurance premium will also increase. However, if we do, we will find out only in the beginning of 2020, because its amount depends on the average salary in the fourth quarter, and that amount is secured by the OCD only at the end of January.
Small Business Small ZUS 2020
Since 2019, low-cost companies are paying ZUS out of their real income, and not on the same basis for the size, which is 60 percent. projected average wages. However, this form can be used by entrepreneurs who share business turnover in the past year, but do not exceed 30 times the minimum fee for their work. It is currently 63,000 PLN and at least 73,500 PLN for 2020. This corresponds to the average monthly turnover of PLN 5,250 (for the previous year) and PLN 6,525 this year.