Tax-free amount of PLN 30,000 PLN means that most old-age and disability pensioners in Poland will not pay the tax. The border will be 2.5 thousand. PLN gross monthly benefits.
- Free amount at the level of 30 thousand. PLN means exempting even more than 5 million old-age and disability pensioners from the tax
- At the same time, as part of the Polish Order, PiS proposes to people reaching retirement age to extend their professional activity in exchange for the release of their salaries in the last years of their PIT activity
- More such information can be found on the main page of Onet.pl
– We will eliminate the degressive tax system and raise the tax-free amount to 30,000. PLN – announced the president of PiS, Jarosław Kaczyński, when presenting the assumptions of the Polish Deal.
As we calculated on the basis of ZUS and the Ministry of Finance data published by the ministry last yearThanks to such an increase, almost 10 million taxpayers will not pay any tax. Most of them will be old age and disability pensioners. The threshold up to which the recipient of benefits from ZUS, KRUS or the departmental pension institution will not pay PIT will be 2.5 thousand. PLN gross monthly.
Over 4.5 million retirees and disability pensioners will benefit
According to the information published by ZUS on the distribution of the amount of disability pensions pensions (the latest relates to the situation on March 1, 2020), about 65 percent. recipients received exactly that much or less each month.
Assuming that after indexation and the emergence of new retirees, whose benefits are calculated on a more favorable basis due to the pandemic, it can be assumed that still over 60 percent. retirees and disability pensioners do not receive monthly transfers in the amount exceeding 2.5 thousand. PLN. This is about 4.6-5.2 million people who will not pay any tax after the increase.
Tax-free work after reaching retirement age
The second of the changes proposed in Novi Lada to people of retirement age is Regardless of the amount of salary, exemption from the obligation to pay PIT in the event of prolonging professional activity.
See also: More and more Poles work, although they could retire. It’s an easy way to increase your benefit
– If they do not choose a retirement pension, they will be able to work tax-free and thus they will be able to build a substantially higher pension capital – the prime minister explained. As he added, the prolongation of professional activity combined with the exemption of salaries in the last years of work from tax will simultaneously increase the private savings of future pensioners and increase the amount of the future benefit.
We have written many times in Business Insider about how the mechanism of increasing future retirement benefits works by extending professional activity. Experts say even a 10% increase after the first year of longer work.
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