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A three-year period of reduced social insurance contributions thought to be a poor solution

Gawlak-600x600Recently the Ministry of Family, Labor and Social Policy has submitted a proposal to extend the period of preferential contributions to the Social Insurance Institution (ZUS) for new business activities. The period of preferential ZUS contributions would last three years instead of two as it is now. According to some, this idea is not justified when the demand for labour is clearly growing. Even more so that people who do not manage as entrepreneurs should become employees.

Specialists are supportive of the preferential ZUS contributions for people starting a business for the first time. However, they point out that the relief was introduced in the period when unemployment in Poland was at a very high level. At the moment, such a phenomenon is no longer large-scale. That is why a two-year preference is enough, and three years is probably too long.

Although two years of reduced contributions seem too short a period to motivate people to set up and maintain a long-term businesses, the three-year period will not improve ZUS income at all. The forecasts indicate that this income will decrease even further. Nonproductive entrepreneurs would pay higher social security contributions if they were employed in other companies.

 

Author of the text: Patryk Szulc
Translate: Beata Wiśniewska
Source of information: http://inforfk.pl