The Polish government adopted a bill on the so-called “Small Pension”. As a result of this new regulation, over 300,000 small businesses will be able to make contributions, on average PLN 500 per month lower, to the social security system. At present, lower contributions are made by about 180,000 small business owners.
MATEUSZ MORAWIECKI, PRIME MINISTER OF POLAND said: “This is a solution which will enable small businesses to flourish. I am talking about micro and mid size small businesses. We estimate that the amount to pay to the Social Pension will be lowered by 500 Polish zlotys on the average. For businesses with income higher than 5000 PLN this discount would be smaller, and for those with small earnings the amount would be much higher than 500 PLN. So, the average is the average. On the scale of the whole budget of Poland it is a shift of at least one billion 300 million to small and very small businesses. Why am I presenting this in such a way? This is because the pension plan system will have a deficit, and this deficit must be compensated. It is going to be compensated by the transfer of funds from the state treasury. So, in order to help small and very small businesses, and frankly micro businesses, we will move one billion 300 million, maybe even 500 million”
JADWIGA EMILEWICZ, MINISTER OF DEVELOPMENT added: “Let’s imagine a business owner who’s gross income was about 84 000, the net income was about 36 000, presently the Social Pension contribution would be about 990 PLN, and starting in 2020, the respective amount of the contribution will be 517 PLN. So, it is that average 500 PLN less than until now. It is very beneficial solution, cash in the small business owner’s pocket”.
Source: Poland Daily/NB