Changes to health insurance contribution for entrepreneurs in Poland from January 2025

On 1st of January 2025, new provisions of the Act of 6 December 2024, amending the Public Healthcare Act in Poland entered into force. These changes introduce significant modifications to the rules for calculating health insurance contributions for entrepreneurs. The purpose of the amendment is to reduce the financial burden on entrepreneurs with the lowest incomes and to clarify the rules related to accounting for income from the sale of tangible assets.

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Reduction of the minimum health insurance contribution

One of the key changes is the reduction of the minimum health insurance contribution for entrepreneurs paying tax according to tax brackets, flat-rate tax on net income, and paying tax based on the tax card. The new regulations lower the base for assessment of health insurance contributions to 75% of the minimum wage applicable on the first day of the contribution year. This means real savings for entrepreneurs with low incomes.

In 2025, the minimum wage in Poland is set at PLN 4,666, which means the base for assessment of health insurance contributions is PLN 3,499.50.

The minimum health insurance contribution calculated from this base is PLN 314.96 per month.

In January 2025, entrepreneurs will not yet feel the full impact of the new regulations and will pay the minimum ZUS (social security) contribution of PLN 381.78.

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How does this look in practice?

• Previous rules (in force until January 2025):

The minimum health insurance contribution was 9% of 100% of the minimum wage. With the minimum wage of PLN 4,242 (contribution base applicable from February 2024 to January 2025) entrepreneurs had to pay a contribution of PLN 381.78 per month. Assuming the minimum wage in force in 2025, this would be PLN 419.94.

• New rules (in force from February 2025):

The minimum contribution base is 9% of 75% of the minimum wage. With the new minimum wage of PLN 4,666 in 2025, the base for assessment of health insurance contributions is PLN 3,499.50. As a result, the minimum monthly health insurance contribution is PLN 314.96, resulting in a saving of PLN 104.98 per month.

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Who benefits from the reduced contribution?

• Entrepreneurs paying tax according to tax brackets (a fixed health insurance contribution amounting to 9%):

Minimum contributions apply to those who:

• Earn less than PLN 4,666 in a given month, or
• Record a loss from business activity.
• Entrepreneurs paying flat-rate tax on net income (a fixed health insurance contribution amounting to 4.9%):

The minimum contribution will be paid by those whose monthly income does not exceed PLN 8,570.

• Entrepreneurs paying tax based on the tax card:

They will also pay the minimum contribution of PLN 314.96 per month.

Example 1:
An entrepreneur, who pays taxes based on the tax bracket, earns PLN 3,500 in January 2025. According to the new rules, his health insurance contribution will be a minimum of PLN 314.96, rather than 9% of income, which would be lower.

Example 2:
An entrepreneur, who pays flat-rate tax on net income, earns PLN 8,000 in February 2025. The health insurance contribution calculated as 4.9% on the income would be PLN 392. Thanks to the new regulations, he will pay the minimum contribution of PLN 314.96.

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Taxpayers paying flat-rate tax on revenue

Entrepreneurs paying flat-rate tax on revenue will continue following the current rules (the health insurance contribution for flat-rate taxpayers is 9% of the assessment basis). The contribution amount in 2025 will depend on the income earned in a given year and the thresholds to which they are assigned:

• 60% of the average wage – for income up to PLN 60,000.
• 100% of the average wage – for income between PLN 60,000 and PLN 300,000.
• 180% of the average wage – for income above PLN 300,000.

The average wage in Q4 2024, which determines the contribution rates for flat-rate taxpayers in 2025, will be announced at the end of January 2025.

If a certain income threshold is exceeded during the year, a contribution rate in accordance with the higher threshold must be paid from the month the threshold is exceeded. If, at the end of the year, it turns out that the revenue has actually exceeded the specified threshold, it will be necessary to make an equalisation of contributions for the earlier months according to the highest threshold. This adjustment must be settled by the end of the month following the deadline for submission of the annual tax return.

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Exclusion of income from the sale of tangible assets from the health insurance contribution base

From January 1, 2025, entrepreneurs can exclude income and costs related to the sale of tangible assets from the health insurance contribution base. This change applies to those paying tax according to tax brackets, flat-rate tax on net income, or flat-rate tax on revenue. As a result, entrepreneurs do not have to fear that a single transaction, such as the sale of real estate, machinery or cars, will result in an increase in liabilities towards the Social Insurance Institution (ZUS).

Who is affected by this change?

The exclusion of income from the sale of tangible assets from the health insurance contribution base applies to:

• Entrepreneurs paying:
• according to general rules (tax brackets),
• flat-rate tax on net income.
• Taxpayers paying flat-rate tax on revenue- in this case, the sale of tangible assets will not affect the income thresholds on which the amount of the healthcare contribution depends.

Flexibility in application

The legislator has introduced an option that allows entrepreneurs to decide whether it is more favourable to exclude revenues and costs from the sale of tangible assets from the basis for the health insurance contribution or to include them. This decision depends on individual circumstances, such as:

• the purchase and sale price of the tangible asset,
• the depreciation rate of the asset,
• other costs related to the sale.

If the entrepreneur decides to include the income and costs of sale in the health insurance contribution base, he may do so only in the annual settlement for 2025 by making a relevant statement in the Social Insurance Institution’s (ZUS) settlement documents.

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Summary

The changes to the health insurance contribution, which came into effect on 1 January 2025, provide significant improvements for entrepreneurs. The reduction of the minimum health insurance contribution to 75 % of the minimum wage brings real savings especially for those with low income or losses.

The amendment also introduces favourable solutions with regard to the sale of tangible assets – the possibility to exclude income and costs from such transactions from the base for assessment of health insurance contributions prevents a significant increase in liabilities towards the Social Insurance Institution (ZUS). However, the provisions provide flexibility, allowing entrepreneurs to choose the solution that is more favourable to them.

We encourage you to carefully analyse the new regulations and their impact on your company’s finances – if necessary, our accounting team will support you in adjusting your accounts to the current regulations.

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If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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