Reduction in health insurance contributions for entrepreneurs from January 1, 2026
On 4 April 2025, the Polish Parliament passed a law reducing health insurance contributions for entrepreneurs. This is due to come into effect on 1 January 2026. However, it should be noted that further proceedings are required for the law to be enacted: first, it must be passed by the Senate, and then signed by the President of the Republic of Poland. It will only be possible to confirm the final wording and entry into force of the changes in question (planned date: 1 January 2026) once this legislative process has been completed and the legal act has been announced. This alert discusses the planned changes in detail, taking into account their potential impact on various groups of entrepreneurs.
The Act introduced on 4 April 2025 introduces a new health insurance contribution model which aims to make it easier for entrepreneurs to fulfil their obligations, though it may introduce additional burdens for some. The key elements of the proposed changes are:
1. The introduction of a two-part system for calculating health insurance contributions.
The amendment to the Act introduces a two-part system for calculating health insurance contributions consisting of a fixed and a variable part.
• A lump sum (fixed) part
The contribution will amount to 9% of the base amount, which is 75% of the minimum wage. For example, in 2025, the gross minimum wage is PLN 4,666, which equates to a base amount of PLN 3,499.50, resulting in a monthly contribution of approximately PLN 315.
• Variable part (flat tax and tax scale).
In this case, the second basis will be the entrepreneur’s income in excess of: 1.5 times the average monthly salary in the enterprise sector in the fourth quarter of the previous year. The health insurance contribution will then be 4.9% of this amount. For example, if the average salary in 2025 is estimated to be PLN 8,500, the threshold will be PLN 12,750. If the income were PLN 15,000, the variable contribution would be PLN 110.25.
• Variable part (lump sum on income):
For taxpayers taxed on a lump sum basis, the lump sum on income will be 3.5% of the surplus income above three times the average monthly salary in Poland. With an average salary of PLN 8,500 in 2025, the variable part will be calculated from a base of PLN 25,500. For example, if income is PLN 30,000, the variable contribution will be PLN 157.50.
2. Elimination of the health insurance contribution deduction
It is also expected that it will no longer be possible to deduct the health insurance contribution paid in an amount of up to PLN 12,900 in a tax year (in the case of a flat tax) or to deduct 50% of the health insurance contribution paid from income (in the case of a lump sum on income).
3. Comparison of legislative changes
• Basis for calculating health insurance contributions:
From 1 January 2022 to 31 December 2025, it will be calculated on the basis of income (tax scale/flat tax) or revenue (lump sum). Minimum basis of 75% of the minimum wage.
From 1 January 2026 (planned): two-part basis: fixed part (9% of 75% of the minimum wage) + variable part.
• Fixed part:
From 1 January 2022 to 31 December 2025, the minimum amount is PLN 314.96 per month.
From 1 January 2026 (planned): estimated at PLN 346.50 per month (assuming a minimum wage of approximately PLN 5,100).
• Variable part:
From 1 January 2022 to 31 December 2025, in the case of a flat tax and a scale, there is no variable part.
For taxpayers subject to lump sum taxation, the variable part depends on the income threshold (60%, 100% or 180% of the average salary).
From 1 January 2026 (planned):
- Tax scale/flat tax: – 4.9% on income > 1.5 × average salary (threshold approx. PLN 13,515).
- Lump sum on income: 3.5% on income > 3 × average salary (threshold equal to approx. PLN 27,030).
• Deduction:
From 1 January 2022 to 31 December 2025, you can deduct up to PLN 12,900 of health insurance contributions paid in a tax year from your income (if you are paying the flat tax rate) or deduct 50% of health insurance contributions paid from your income (if you are paying the lump sum tax rate).
From 1 January 2026 (planned), no deduction will be possible.
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If you would like to discuss the issues raised in this alert, please contact us – we will be happy to explain how the changes may affect your situation.