Holiday from Social Security. How to gain 1 month without contributions

Holiday from Social Security 2024 – New opportunities for entrepreneurs

A holiday from ZUS is a solution that many Polish entrepreneurs have been waiting for for a long time. The new regulations will come into force later this year, giving entrepreneurs a break from paying social security contributions. Who will be able to benefit from this relief, under what conditions, and how to apply? Here is everything you need to know about the ZUS holiday in 2024.

What is a holiday from Social Security?

Social Security holidays, also known as contribution holidays, allow entrepreneurs to be exempt from paying social security contributions for one selected month per year. The relief applies to contributions:

-pensions,

-disease,

– accidents

-Labour Fund and Solidarity Fund.

Importantly, entrepreneurs will have to pay their own health contribution. During the holiday from Social Security, the entrepreneur will be able to run the business, issue invoices and generate income as in a normal month.

Why was the Social Security holiday introduced?

The new rules aim to relieve the burden on micro-entrepreneurs, who often had to pay contributions even when they did not generate revenue, e.g. due to illness or holidays. By being exempt from contributions for one month, business owners will be able to save money and increase the liquidity of their business.

Who can benefit from a holiday from Social Security?

Micro-entrepreneurs, i.e. sole traders who:

– have a maximum of 9 employees and

-have an annual turnover not exceeding €2 million.

The holiday is available to entrepreneurs regardless of their form of taxation:

– flat tax,

-tax scale,

–lump sum or

-tax card.

Who will not benefit from a holiday from Social Security?

A contribution holiday will not be available to entrepreneurs who:

As part of their activities, they work with their former employer.
They benefit from start-up relief.
They have achieved revenues in excess of €2 million in one of the last two years.
They are active in the liberal professions, schools or kindergartens.
They are creators or artists.

What contributions are included in the Social Security holiday?

The exemption applies only to social security contributions (pension, disability, sickness, accident) and the Labour Fund and Solidarity Fund. Health contributions remain to be paid by the entrepreneur.

How much can you save with a holiday from Social Security?

If the Social Security holiday is applied for in 2024, the savings for entrepreneurs could be:

for those paying full contributions – PLN 1,600.32 or PLN 1,485.31 with no sickness contribution;
for persons paying “Small ZUS”. – PLN 408.16 or PLN 376.55 with no sickness contribution.

When can you take a holiday from Social Security?

The legislation will come into force in November 2024, meaning that entrepreneurs will be able to take a holiday from Social Security as early as December 2024. In practice, the first savings will be felt in January 2025.

How do I apply for a holiday from Social Security?

An application for a contribution holiday should be submitted via the Platform for Electronic Services (PUE) of ZUS at the latest one month before the planned use of the relief. In the form, you will have to provide your data (first name, surname, NIP, PESEL), select the month in which you intend to take the holiday, and submit a declaration that you meet the conditions for the exemption, such as not cooperating with your former employer. ZUS has 40 days to process the application.

Highlights of holidays from Social Security

In summary, the holiday from ZUS is a new, beneficial solution for micro-entrepreneurs, giving them the possibility to be exempt from paying social contributions for one month a year. This financial support will not adversely affect social security benefits, and savings can reach up to several hundred PLN per month.