Since the introduction of the "Polish Deal," health insurance contributions have been the subject of widespread discussion among businesses and politicians. They also constitute a crucial element in tax planning. The tax deductibility of health insurance contributions has been significantly limited. Their amount is no longer set as a flat rate, but depends on the individual business's tax treatment.
Changes to health insurance contributions have been the subject of election promises from politicians of all political persuasions. They have proposed extreme solutions, ranging from including health insurance contributions in income tax to requiring farmers to pay them on the same terms as entrepreneurs.
Ultimately, the Sejm passed the government's bill amending the Act on Healthcare Services Financed from Public Funds. The bill was signed by the President.
The most important (and most media-generated) change is the elimination of the obligation to include income and tax-deductible expenses in determining the basis for calculating health insurance contributions. However, businesses will have the option to do so if they deem it more beneficial.
In addition to this change, the health insurance contribution base will also change in the coming year. In 2024, the health insurance contribution could not be lower than 9% of the minimum wage on the first day of the contribution year, i.e., PLN 381.78. In 2025, the minimum health insurance contribution will be 9% of 75% of the minimum wage applicable on the first day of the contribution year. If this change were not implemented, the minimum health insurance contribution in 2025 would be PLN 419.94 (9% of the minimum wage). However, due to the 25% reduction in the contribution base, the minimum health insurance contribution in 2025 will be PLN 314.96. This change will benefit entrepreneurs with low or no income. It will amount to nearly PLN 1,260 annually.
Please note that for individuals taxed under the general tax rules (tax scale), the contribution year begins on February 1 and ends on January 31 of the following year. This means that the minimum health insurance contribution will apply for January 2025 under the old rules.
We would also like to remind you that taking advantage of the contribution holiday only exempts you from paying social security contributions, but does not exempt you from the obligation to pay health insurance contributions.
Additionally, a favorable change will also apply to businesses paying the flat tax. In their tax returns filed by the end of April 2025, they can reduce their tax base by PLN 12,900 for paid health insurance contributions. This is PLN 1,300 more than in the current year.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of December 30, 2024
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