20:20 4 April 2025
New Health Contribution Rules in Poland to Benefit Most Entrepreneurs, But Not All
Poland’s Sejm has passed a new law changing the way entrepreneurs pay health contributions, set to take effect in January 2026. The updated model will include a fixed (lump-sum) component and a percentage-based component calculated on income above a certain threshold.
For most self-employed individuals, the reform means a simpler system and real financial savings. Entrepreneurs taxed under the general or flat-rate tax systems will especially benefit if their income stays within the new limits. Those using the lump-sum tax card (karta podatkowa) will also pay less, as the contribution base is being reduced from 100 to 75 percent of the minimum wage.
However, around 130,000 entrepreneurs using the lump-sum taxation model may end up paying more, particularly those who previously deducted health contributions as business expenses.
While the reform favors the majority, it creates a divide between those who gain and those who will face increased costs.
