Changes to way Polish employers pay social insurance boosts state coffers Changes to way Polish employers pay social insurance boosts state coffers

Changes to way Polish employers pay social insurance boosts state coffers
01 Feb 2018

Poland's Social Insurance Institution (ZUS) has reported a 10% increase in revenues generated by the social security contributions paid by employers.

According to the PAP news agency, so far this year employers have paid ZUS a huge PLN17 billion (US$5.1 billion) using individually assigned account numbers - a 10% rise on the same period last year.

ZUS has restructured the way Polish companies and self-employed people pay mandatory social contributions, assigning an individual bank account number to each payer. Starting this year, employers make a joint bank transfer to their individual ZUS account instead of carrying out multiple online transactions.

Labour minister Elzbieta Rafalska said the increase in revenues from social security contributions was the result of a low unemployment rate, an improving job market and rising wages.

Figures have also been released on the effects of a contentious retirement reform, introduced by the ruling Law and Justice (PiS) party last year. Under the new rules, women can retire at 60 and men at 65, reversing a 2012 law setting the statutory retirement age for everyone at 67.

ZUS chief Gertruda Uscinska said new estimates indicate that the 2017 reform will cost less than initially expected.

 

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

Poland's Social Insurance Institution (ZUS) has reported a 10% increase in revenues generated by the social security contributions paid by employers.

According to the PAP news agency, so far this year employers have paid ZUS a huge PLN17 billion (US$5.1 billion) using individually assigned account numbers - a 10% rise on the same period last year.

ZUS has restructured the way Polish companies and self-employed people pay mandatory social contributions, assigning an individual bank account number to each payer. Starting this year, employers make a joint bank transfer to their individual ZUS account instead of carrying out multiple online transactions.

Labour minister Elzbieta Rafalska said the increase in revenues from social security contributions was the result of a low unemployment rate, an improving job market and rising wages.

Figures have also been released on the effects of a contentious retirement reform, introduced by the ruling Law and Justice (PiS) party last year. Under the new rules, women can retire at 60 and men at 65, reversing a 2012 law setting the statutory retirement age for everyone at 67.

ZUS chief Gertruda Uscinska said new estimates indicate that the 2017 reform will cost less than initially expected.

 

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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