In the context of social safety legislation, the crucial question is how to deal with a contractor who has turned 26 during the period and whether contributions should be deducted proportionally to the days after the failure of student status. On the example of a contractor who will be 26 years old on September 5, 2024, the situation can be analysed in detail.
Social safety obligations – legal basis
Pursuant to Article 6(1)(4) of the Act on the Social safety System, compulsory pension and pension insurance are subject to persons performing work under an order contract or another service contract to which the contract rules apply. However, the exception to this regulation is those who are secondary school students or students who are under the age of 26. In practice, this means that until the client has a student position and is 26 years old, the employer is not obliged to pay social safety contributions for the contract concluded.
The legislator so makes the social safety work subject to 2 key conditions:
- Age of the contractor (until the age of 26),
- Having student status.
Obligation to pay contributions after the age of 26
In this situation, the contractor ends 26 years on September 5, 2024. Therefore, from that date, he loses the statutory exemption from the insurance obligation. As of 6 September, he becomes a compulsory contributor to social safety contributions, unless there is simply a coincidence of titles for insurance.
Proportional calculation of contributions
The key issue in this situation is the way in which contributions are calculated for the period of September, in which the client has benefited partially from the exemption and is already subject to insurance obligations. ZUS explains that contributions should be paid in proportion to the number of days under social insurance. This means that the remuneration due for the period from 6 to 30 September will be the basis for the contribution, while the remuneration for the period from 1 to 5 September will be exempt from this obligation.
Position of ZUS
By letter from ZUS of 6 August 2024 (DI/100000/43/684/2024) ZUS clearly states that the work to pay contributions is determined not by the deadline for payment of remuneration, but by the period for which remuneration is due. Therefore, if the remuneration for September is paid in October, the contributions should be calculated in proportion to the days on which the contractor was subject to social insurance. The contribution work is secondary to the work to be subject to social insurance – contributions are payable only for the days on which the insurance work existed.
IMPORTANT: The work to pay contributions is determined by the period for which remuneration is due for the contract of order, not erstwhile it is paid.
Notification to insurance
The contractor who turns 26 during the period must be notified to social safety from the date on which he ceased to benefit from the exemption (in this case from 6 September 2024). He will then be required to contribute to pension, pension and accident insurance, while sickness insurance will be voluntary.
Consequence of insurance titles
It is besides worth remembering that the social safety work under the contract does not arise erstwhile there is simply a confluence of insurance titles. An example of this is the conclusion of an employment contract with another employer or the establishment of a business. If contributions from the assessment base not little than the minimum remuneration are paid from another contract of order or business, then social safety from the contract will be voluntary. In that case, the employer is obliged to pay only wellness insurance contributions.
Summary
In the event that the Student Contractor reaches 26 years of age during the period (in this case 5 September 2024) and the September remuneration is paid in October, the employer will not be required to pay social safety contributions for the period until 5 September. Contributions should be calculated and deducted only for the period from 6 to 30 September, in proportion to the days on which the client is subject to compulsory social insurance. The contributor must besides bear in head the timely notification to the social safety contractor.
However, if there is simply a coincidence of titles for insurance, then social safety contributions may be voluntary for the client and only wellness insurance will be compulsory.
The article takes into account the interpretations of the provisions contained in the position of the Social safety Office and specifically refers to the applicable law, which makes it a complete guide to employers who deal with akin situations in their companies.
The information on the website is simply a description of the legal position at the date of publication and is not a legal advice on an individual case. The legal position of publication may change. The law firm is not liable for utilizing an alert to solve legal problems.You have questions or request aid – welcome to contactOh, my God!
Legal basis: Article 6(1)(4) and Article 6(4) of the Act of 13 October 1998 on the social safety strategy (i.e. OJ of 2024 item 497)
Continued here:
ZUS contributions to the client after the age of 26 – applicable guide
