Full ZUS from all contract already in 2025. Your wage will drop drastically?

The government is finalising work on 1 of the biggest revolutions in the Polish labour marketplace for years. Since 2025, it is planned to introduce a full cover-up of all civilian law contracts, including, most importantly, work contracts. This is the end of an era and possible drama for hundreds of thousands of Poles who have utilized this flexible form of earning so far. For freelancers, artists, IT professionals and many another professions, this means 1 thing: a crucial drop in income “on hand”. The government argues that this is simply a step towards "civilising" the labour marketplace and providing future pension benefits. However, experts and stakeholders themselves are alerting that specified a fast change can push part of the economy into a grey region and drastically increase the cost of operating in Poland. Is this truly a essential improvement or a nail to the coffin for Polish creativity and professional flexibility? We analyse precisely what this change means and who will feel it most.

What precisely is the government planning? No more junk contracts.

The main nonsubjective of the project, which is to enter into force on 1 January 2025, is to include full social contributions (elemental, pension, sickness and accident) all contract orders and, which is an absolute breakthrough, besides contract for the work. So far, work contracts, due to their nature (focus on the consequence alternatively than the work process), have been exempted from covering ZUS. This made them highly popular in creative industries and among freelancers.

The amendment aims to destruct the alleged confluence of insurance titles in the case of contract contracts. Today, if individual has respective specified contracts, the contributions pay only one, up to the minimum wage. After the changes, ZUS will be charged to each gold earned on each contract. However, this is the inclusion in the strategy Work Agreements It creates the top controversy. The government argues that many companies abused this form of contract to avoid labour costs, depriving workers of basic rights specified as paid medical leave or future retirement.

Who's gonna lose the most? Drama of freelancers, artists and IT industry

The fresh rules will primarily affect those whose economical model is based on flexibility and implementation of circumstantial projects. The financial impact will be immediate and very severe. The groups that will feel the most change are:

• Freelancers and creative industry: Graphicists, copywriters, translators, journalists, photographers who frequently settle through work contracts.
• Artists and creators: actors, musicians, writers for whom a work contract is simply a natural form of remuneration for their work.
• IT specialists: programmers, testers and analysts frequently working on B2B contracts, but besides on work contracts for smaller projects.
• Lecturers and trainers: people conducting courses, workshops or guest lectures at universities.

Consider a simple example. A computer graph that has been awarded a work contract for the task so far 5000 PLN gross (which was equal to the amount ‘on hand’, after deduction of income tax), after the changes it will receive much less. ZUS contributions of around 20-25% will be deducted from his salary. This means that his net wage will fall to around PLN 3800-4000. This is simply a decrease in income of over PLN 1000 per period at the same workload.

Higher costs for companies. Do we have a wave of layoffs?

The problem is besides with the another side – employers and employers. For them, covering work contracts means a sharp increase in the cost of cooperation. To date, the full cost of order of the 5000 PLN work was equal to this amount. After the changes, the company will gotta include further contributions on its side (approximately 20%), which will rise the full cost of employment to more than PLN 6000.

The consequences can be threefold. Firstly, companies may effort to shift these costs to contractors, offering them lower gross rates to keep the full cost at the same level. Secondly, they can limit their cooperation with freelancers by seeking savings. Thirdly, what is most dangerous to the economy, any of the medicine can decision to grey areawhere settlements are held ‘under the table’ without any contracts or taxes. This, in turn, will hit the gross of the state budget which the government wants to save ZUS's finances.

Two sides of the medal: Social safety versus marketplace flexibility

However, the arguments raised by the improvement supporters cannot be ignored. Full coverage is an chance for many to build on the pension capital they will be able to usage in the future. It is besides access to paid sick leave (L4) or maternity benefits, whose freelancers have been deprived so far. In the long term, this is intended to guarantee greater stableness and social security.

The key question, however, is whether the marketplace is ready for specified a extremist and abrupt change. Many experts believe that alternatively of revolutionising, the government should consider indirect solutions, e.g. voluntary ZUS for work contracts or progressive shelling. The current proposal puts hundreds of thousands of creative and enterprising Poles against the wall, who consciously chose flexibility and independence, and can now be forced to drastically change their working life model. The coming months will show whether the government listens to these voices and whether a compromise can be found that will address the needs of the strategy with the realities of the modern labour market.