The government is planning to contribute to premium contracts, Rzeczpospolita wrote on Monday. And although later Deputy Minister of Labor Stanisław Szwed distanced himself from such reports, he did not deny that the government was working on such a project. We counted how much the employee and the employer can lose on this idea. With the national average, these are hundreds of zlotys on one contract.
- The government is thinking about making contracts of mandate
- The idea is for entrepreneurs to pay higher contributions on the remuneration of people who work on at least two mandate contracts or combine contract work with full-time and business activity
- BCC calculated that with the national average (approx. PLN 5,000), a monthly employee would lose nearly PLN 500 on one contract, and the employer as much as PLN 1024
– No decisions have been made yet – Stanisław Szwed told PAP on Monday. This is a reaction to the publication “Rzeczpospolita”, which wrote about the government’s plan of premiums for contracts of mandate. As he noted, the government talks with social partners about various solutions, and the form in which the reform would enter into force and when “depends precisely on dialogue with trade unions and employers’ organizations.”
Ozusowanie contracts of mandate. How much will the employee and the employer lose?
Let us remind you that according to the current regulations, if the entrepreneur pays the premiums under the first contract, then he has to pay only the health insurance for the next ones. Both he and the employee benefit from it, because he receives a higher by approx. 30 percent. reward.
The advantage of such a solution would certainly be a greater stream of money to ZUS and ensuring that people working on the “rubbish” they will earn a long time for retirement. The problem, in turn, is that currently, in the era of a pandemic, implementing such changes would entail a lower salary for the employee and much more costs for the employer.
– We are dealing again with the so-called an insert, not supported by data. The employers’ union is against the proposal to fully fund contracts of mandate, because it does not fit into any systemic change and is purely fiscal in nature– says Wojciech Nagel, a member of the supervisory board of ZUS and a BCC expert.
– The consequence will be an increase in the shadow economy – he adds.
Grzegorz Grochowina, senior manager in the PIT team at KPMG in Poland, is of a similar opinion. As she calculates, these are the next unfavorable changes in the field of social security, on which work has been carried out recently.
– At the end of last year, the abolition of the 30-fold limit of contributions to ZUS was proceeded, from which, however, it was finally withdrawn. The change in the scope of full premiums for mandate contracts will both increase costs on the side of principals and reduce net remuneration on the part of contractors. Bearing in mind that a large group of taxpayers continues to feel the negative effects of the coronavirus pandemic, the introduction of further public law burdens may contribute to increasing the so-called the shadow economy – Grochowina is concerned.
Employees will lose out on contracts of mandate
The government would like entrepreneurs to pay higher contributions on the remuneration of people who work on at least two mandate contracts or combine contract work with full-time and business activity.
Business Insider Polska asked the BCC to calculate how much an employer and an employee may lose in the changes proposed by the United Right. It should be noted that the calculations are made on a general level, as we do not know the detailed solutions on which the labor ministry is working.
And yes. In the case of a mandate contract, up to the amount of the minimum remuneration (PLN 2600 gross this year), a contractor not employed anywhere receives the amount of approx. PLN 1,965 net. The total cost of the client / employer is PLN 3132.
Under the current regulations, if the contractor has paid the premium on at least the minimum wage, only the health insurance premium is paid for subsequent contracts.
The first option – 3,000 PLN on a mandate contract
Currently (before the planned changes), in the case of the second contract of mandate, for example for the amount of PLN 3,000 gross, the contractor receives PLN 2,554 on hand, and the client’s cost is PLN 3,000.
If the idea was to be implemented, if the second contract of mandate was fully funded for the amount of PLN 3,000 it will be, respectively, about PLN 2,267 for the contractor (less by PLN 287) and PLN 3,614 for the client (the cost is higher by PLN 614).
Option two – 5,000 PLN on a mandate contract
Similarly, for the second contract of mandate for the amount of PLN 5,000 gross, the contractor currently receives PLN 4,257 at the principal’s cost of PLN 5,000 (contributions from the first contract up to the minimum remuneration for work).
In the case of full contributions, the contractor will receive accordingly approx. PLN 3,778 per hand (approx. PLN 480 less), and the total cost of the client / employer will be PLN 6,024 (more by PLN 1,024).
With the national average, the employee will lose nearly PLN 500 a month, and the employer as much as PLN 1024.
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