Micro-firms may pay lower contributions starting 2018

Social security (ZUS) contributions for microenterprises may be lowered as early as January 2018, Minister Henryk Kowalczyk told TV Republika. Currently, all micro firms pay a lump sum contribution of at least PLN 1,200 a month. "It is a barrier to entrepreneurs, and many decide to terminate their company once the initial grace period [when only a part of the sum is paid] is up," said Kowalczyk. The contribution would depend on the revenue and would apply to entrepreneurs whose monthly revenue is below 2.5 times the national minimum salary (this year this would equal to PLN 5,000). The new legislation could apply to as many as 325,000 firms, as well as over 10 percent of sole proprietors. The new regulation is also aimed at reducing the size of shadow economy.