Wealthy farmers bear the brunt of social insurance change

Wealthy farm owners will be hardest hit under a draft bill on changes to the social insurance regulations, as they will pay the highest contributions, according to daily Rzeczpospolita. The most significant change, due to come into force in 2010, envisages introducing two rates for pension insurance.

The first will be calculated against the size of the farm, while the second will depend on revenues. At present all farmers pay the same amount of zł.190 a quarter.

According to the foundations of the new act, farmers running farms exceeding 100 ha would pay a double rate of zł.127.26 on monthly basis. As of July 2010 farmers will also have to pay the second rate based on revenues, which might range from a few złoty to zł.388 a month.

Income would be calculated as the difference between value of production and EU subsidies and costs borne by the farm. "The reform should enable the state subsidy to be directed only at those farmers who have low revenues and cannot afford to finance social insurance," said Kazimierz Plocke, deputy agriculture minister.

Source: Rzeczpospolita