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Health insurance premium in 2024. Tax advisor about the changes

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The proposed changes in the health insurance premium are minor corrections, says tax advisor and professor at Lazarski University, Adam Mariański. In his opinion, the fundamental solutions regarding tax increases will not change and they will not introduce chaos, as was the case with the “Polish disorder”.

On Thursday, Finance Minister Andrzej Domański presented proposals for changes to the health insurance contributions paid by entrepreneurs. From the beginning of 2025, the contribution is to be at a basic rate of 9%. calculated from 75 percent minimum wage. In the case of entrepreneurs who pay a flat tax or a lump sum tax, the contribution may increase after exceeding the limits, the amount of which depends on the average salary.

Changes in health insurance premiums – comment

– The proposed changes in the health insurance premium are minor corrections that do not bring any fundamental solutions to the issue of tax increases and chaos introduced by the “Polish disorder” (this is the Polish Order program, under which changes to taxes and health insurance premiums were introduced from the beginning of 2022 – ed.). These proposals solve the issue of lower income, allow for the elimination of the issue of contributing to income from fixed assets, but at the same time increase the burden on lump sum recipients – said Marianski.

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He emphasized that the current regulations differentiate the amount of taxation depending on the form of taxation and the type of activity performed.

– “Polish disorder” freely differentiates the amount of taxation depending on the chosen taxation method, type of business and, in some cases, profession. For example, if someone is a doctor, they have a lower tax rate than other professions. The result is an unfair distribution of the tax burden, uncertainty at the beginning of the year as to which form of taxation to use, unconstitutional regulations – and these amendments only deepen these problems. Entrepreneurs will once again wonder which form to choose, and if they choose the wrong one, they will pay higher tax than they should, said the expert.

In his opinion, comprehensive changes in the taxation system are necessary and entrepreneurs are waiting for such comprehensive proposals.

– We are very concerned that there is no comprehensive discussion on income tax reform. I am talking about taxation of small and large entrepreneurs, but also large corporations. Meanwhile, for now, only the burdens on Polish entrepreneurs are increasing, said Marianski.

He also emphasized that the health insurance contribution should be treated as a tax, as it is not associated with any benefit, as is the case with, for example, social security contributions.

– Public and legal charges that do not involve any benefit should be equal regardless of the amount of income. Yes, it is assumed that they may be lower, for example in the case of business activity or family preferences. Meanwhile, it is not known why income from gambling is taxed the lowest and why income from capital is taxed lower than income from work. We should discuss making the burdens simple, fair and equal, because progression is a myth – higher taxes are paid by those who cannot or do not want to pay lower ones – said Adam Mariański.

Health insurance premium – proposed changes

The Ministry of Finance proposes that the health contribution for entrepreneurs settling on general principles, i.e. according to the tax scale, should amount to 9%. from 75 percent minimum wage, which in 2025 would amount to approximately PLN 310 per month. According to the ministry, all entrepreneurs settling accounts under general rules – over 1.3 million people – would benefit from such a change. Entrepreneurs settling their taxes using a tax card would also pay a health insurance contribution of 9%. from 100 percent minimum wage.

For people who settle their accounts using the 19% interest rate. linear rate, the Ministry of Finance proposes a health insurance contribution of 9%. from 75 percent minimum wage if the entrepreneur's income does not exceed twice the forecast average wage. Those whose income exceeds twice the forecast average salary would have their contribution increased by 4.9%. surplus above this limit. The ministry reported that entrepreneurs would benefit from this solution from at least PLN 100 per month to PLN 530 per month for people with income at twice the average wage. The Ministry of Finance also assured that it would enable these entrepreneurs not to report income from the sale of fixed assets.

Also in the case of entrepreneurs who settle lump sums on recorded income, the Ministry of Finance proposes a health insurance contribution of 9%. from 75 percent minimum wage for those whose income does not exceed 4 times the forecast average salary. Above this 4 times the health insurance premium would be increased by 3.5%. surpluses over the limit. According to the estimates of the Ministry of Finance, lump sum holders who do not exceed the 4-fold limit will pay – in 2025 – approximately PLN 310 per month. In this case, entrepreneurs will also not have to report revenues from the sale of fixed assets.

The Ministry of Finance emphasized that the health insurance contribution will not be tax deductible. The proposed date of entry into force of the new regulations is the beginning of 2025.

Main photo source: Grand Warszawski/Shutterstock

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