All sides set to benefit from cuts to ZUS contributions

Finance Minister Zyta Gilowsa proposed that the contributions should be cut by 3% starting from July. Moreover, they would fall by another 4% at the beginning of 2007. Instead of the current 13%, the contributions would amount to 6%, of which 1.5% would be paid by employees and 4.5% by employers. This move would lead to extra budget spending on ZUS of zł.3.3 billion this year and zł.19.3 billion in 2007, but would bring about a 9% net increase in wages. Law and Justice (PiS) however, wants the 2007 cut to be 1% lower, that is to amount to 3% and not 4%. "The funds which will be saved by the budget on this 1% would be devoted to increasing the tax-free amount for families with children," said Deputy Prime Minister Przemysław Gosiewski. The final vote concerning the future of the ZUS contributions will be held today in Parliament. (Rzeczpospolita, p. B1) A.K.