Mandatory health insurance contribution – legislative changes

Pursuant to the Polish Deal, health insurance contributions must be paid by, among others, by persons appointed to perform functions by virtue of an appointment letter who receive remuneration on that account.

Pursuant to the Public Healthcare Act, health insurance contributions of the above-mentioned persons are calculated on the remuneration of such persons paid on account of their appointment. 

When introducing the Polish Deal, the lawmakers have not provided an exhaustive list of sources of income which they have defined as “remuneration”. Therefore, healthcare insurance contributions should be calculated on income from all sources related to performing functions under an appointment letter. The term “remuneration” used in the act should be construed broadly, i.e. as all kinds of income which trigger tax obligations under tax laws.

To refine the obligations of remuneration payers related to calculating health insurance contributions, withholding them from the insured’s remuneration and remitting them, the new act makes changes which confirm the consequences of legislation on the insurance obligations and the contribution base. 

Ever since their effective date the regulations have raised doubts as to whether the above applies also to commercial attorneys (prokurent).

To clear the doubts, the amended act is supposed to include a reworded (more precise) provision and include commercial attorneys in the list of people subject to health insurance.

Under the current legislation, general partners in partnerships limited by shares do not pay social insurance contributions or health insurance contributions. However, that is going to change from 2023, when they will be subject to that insurance. This is supposed to make the legal and tax position the same for limited partnerships and partnership limited by shares.

If you have any questions regarding the planned changes in legislation, you are welcome to contact our experts.