The need for a thorough reform of the health insurance contribution has been talked about for a long time by the groups forming the ruling coalition. In fact, it is an element of the coalition agreement, which includes the departure from the “oppressive tax and contribution system, among others, by introducing favorable and clear rules for calculating the health insurance contribution.”
On Monday, the speaker of the Sejm and head of Poland 20250, Szymon Hołownia, spoke on the planned reform. He pointed out that the most pressing issue at present is the elimination of the health insurance contribution from fixed assets. This concerns the contribution from the sale of a fixed asset, such as a machine or a car, introduced as part of the Polish Deal.
It doesn't cure anyone's health. It kills Polish companies, Polish small companies, enterprises, sole proprietors. And this too must be remedied.
– stated Szymon Hołownia. The Speaker of the Sejm also recalled that “Minister Domański made a very clear declaration before the Sejm, which we insisted on when we talked about the law on widows' pension, that the principles of calculating the health insurance contribution will be different. And there is money for this in the budget”. Hołownia also referred to the words of Ryszard Petru, MP of Poland 2050, who threatened that his group could even block the budget if the principle of collecting the health insurance contribution is not changed. The Speaker of the Sejm stated that “there probably will be no such need”.
What's next for health insurance premiums? Coalition wants to move away from “oppressive system”
At the end of July this year, the Minister of Finance announced that “from January 1, 2025, the health insurance contribution for entrepreneurs from the sale of fixed assets will be abolished.”
Today I would like to clearly inform you that we will provide financing for changes in the scope of limiting health insurance contributions for entrepreneurs with effects for 2025 at the level of PLN 4 billion
– noted Andrzej Domański.
The Ministry of Finance assumes that the new health insurance contribution for entrepreneurs will come into force on 1 January 2025. As Domański emphasised, he is keen for a joint government project to be created.
Minister of Health Izabela Leszczyna indicated that if there is no consensus on the reform of health insurance contributions, the government will want to at least abolish the payment of health insurance contributions on the sale of fixed assets.
One of the coalition partners wants a higher health insurance premium and additional payments from the state budget, the other wants to reduce the health insurance premium. It is difficult to reconcile these demands. I am convinced of one thing, that we must implement the pre-election demand and move away from the aberrant idea of paying the health insurance premium from the sale of fixed assets in the company.
– Leszczyna said at the end of July at the headquarters of the Supreme Medical Chamber, quoted by the portal politykazdrowia.com.
Health Insurance Premium Down? Here's What's on the Table
Let us recall that as part of the Polish Deal, the method of calculating the health insurance contribution was changed from a flat-rate to one dependent on income (in the case of general principles or a flat tax; three thresholds were introduced for the flat-rate). Additionally, for everyone – not only the self-employed – the possibility of deducting most of the health insurance contribution from tax was eliminated.
The Civic Coalition wants to eliminate the income criterion. It proposes a return to a flat rate for everyone on the scale, as well as some line workers. In general, the “base” contribution amount would be 6.75% of the minimum wage, although for flat-rate and line workers it would increase after exceeding the appropriate level of income/revenue. The reform would cost around PLN 4-5 billion. We wrote more about the details of this idea HERE.
Polska 2050 has a different idea for the planned reform. Szymon Hołownia's group wants everyone (not just entrepreneurs!) to pay a flat-rate contribution according to three thresholds. For revenues up to PLN 85,000, it would be 4% of the average salary in the enterprise sector in the third quarter of the previous year. For revenues from PLN 85,000 to PLN 300,000, the rate would increase to 7%, and for over PLN 300,000, to 9.4%.
The Left also wants reform, but instead of lowering the contribution, it proposes increasing it. This group expects the current system to be replaced with a health tax of 9%. The tax would also cover CIT payers (i.e. companies) and entrepreneurs who currently apply lower contributions (line payers have a rate of 4.9%, flat-rate payers have three rates depending on revenue).