Business owners who pay the flat-rate tax on recorded revenue (ryczałt) face the challenge of calculating their health insurance contribution correctly. This system differs significantly from the traditional forms of taxation, and its complexity comes from linking the contribution to the revenue earned and to the average wage announced by Statistics Poland (GUS). The threshold system has applied since 2022, and the contribution amounts change every year together with the average wage; the planned reduction of the health insurance contribution from 2026 did not enter into force (the act was vetoed).
Ryczałt taxpayers cannot deduct the health insurance contribution from their tax – since 2022 no form of taxation for business owners allows this. However, a partial deduction from taxable revenue is possible (Article 11 section 1a of the Flat-Rate Income Tax Act), which compensates for this disadvantage to some extent. Business owners must also remember the obligation to file settlement declarations with ZUS (Social Insurance Institution) every month.
The health insurance contribution for ryczałt taxpayers is 9% of the contribution base, which depends on the revenue earned. The base is set as the relevant percentage of the average wage announced by GUS for the fourth quarter of the previous year
How the health insurance contribution is calculated on ryczałt
The mechanism for setting the health insurance contribution for business owners on ryczałt is based on three revenue thresholds that determine the contribution base. The system is designed so that the contribution grows with the revenue earned, although it does not always reflect the business owner's actual financial situation.
The first element affecting the contribution is the business owner's annual revenue, which must be reduced by social contributions if they have not been included in tax-deductible costs or deducted from income under the PIT Act. This reduction is crucial for correctly placing you in the right threshold.
Key elements affecting the contribution:
- Business owner's annual revenue reduced by social contributions
- Average wage in the enterprise sector for the fourth quarter of the previous year
- Uniform health insurance contribution rate of 9% of the base
- Threshold system with three revenue brackets
- Possibility of a partial deduction of 50% of the contribution from revenue
The second key element is the average wage in the enterprise sector for the fourth quarter of the previous year, including payments from profit, announced by the President of GUS in the official journal Monitor Polski. This value is the basis for calculating the specific contribution amounts for each revenue threshold.
In 2026 the basis is the average monthly wage in the enterprise sector (including payments from profit) in the fourth quarter of 2025, which is PLN 9,228.64. This amount was announced by the President of GUS on 22 January 2026 and is the basis for calculating health insurance contributions for ryczałt taxpayers
The third element is the health insurance contribution rate, which is 9% of the base regardless of the revenue earned. This uniform percentage rate means that differences in the contribution amount result solely from differences in the base, which depends on the revenue threshold.
The threshold system is built so that the contribution burden rises gradually with revenue. The lowest threshold applies to business owners with revenue of up to PLN 60,000 a year, the middle threshold covers revenue from PLN 60,000 to PLN 300,000, and the highest threshold applies to revenue above PLN 300,000.
Health insurance contribution amounts in 2026
The current health insurance contribution amounts for ryczałt taxpayers in 2026 were set on the basis of the average wage for the fourth quarter of 2025 (Article 81 sections 2e–2f of the Act on Publicly Funded Healthcare Services). The rise in this wage compared with the previous year led to a corresponding increase in contributions in all revenue thresholds.
| Revenue threshold | Contribution base | Monthly base (PLN) | Monthly contribution (PLN) |
|---|---|---|---|
| Up to PLN 60,000 | 60% of the average wage | 5,537.18 | 498.35 |
| PLN 60,000 - 300,000 | 100% of the average wage | 9,228.64 | 830.58 |
| Above PLN 300,000 | 180% of the average wage | 16,611.55 | 1,495.04 |
For business owners with annual revenue of up to PLN 60,000, the health insurance contribution base is 60% of the average wage, which gives PLN 5,537.18 per month. The health insurance contribution at 9% of this base is PLN 498.35 per month. This lowest threshold is intended for small business owners with a limited scale of activity.
The second threshold covers business owners with annual revenue from PLN 60,000 to PLN 300,000. In this case the health insurance contribution base is 100% of the average wage, that is PLN 9,228.64 per month. The health insurance contribution is PLN 830.58 per month. This threshold applies to businesses with a medium level of revenue.
Business owners with revenue above PLN 300,000 a year pay the health insurance contribution on a base of 180% of the average wage. This means a monthly base of PLN 16,611.55 and a health insurance contribution of PLN 1,495.04 per month
Compared with 2025, there is a significant increase in the burden. In 2025 the average wage for the fourth quarter of 2024 was PLN 8,549.18, which meant lower contributions in all thresholds. For the lowest threshold the contribution was PLN 461.66, for the middle threshold PLN 769.43, and for the highest threshold PLN 1,384.97 per month.
The increase in contributions between 2025 and 2026 is PLN 36.69 for the lowest threshold, PLN 61.15 for the middle threshold and PLN 110.07 for the highest threshold. These increases reflect the general rise in wages in the economy, but they are an additional burden for business owners.
Simplified method of settling the health insurance contribution
Business owners on ryczałt can use a simplified method of calculating the health insurance contribution, which makes costs more predictable throughout the calendar year. This option is particularly beneficial for business owners with stable revenue who can forecast their financial situation on the basis of the previous year's results.
How to choose the simplified method:
- Checking the conditions - the business owner must have run the business for the whole previous calendar year
- Analysing the revenue from the previous year reduced by social contributions
- Setting the contribution base on the basis of the previous year's revenue
- Calculating a fixed monthly contribution for the whole calendar year
- Paying a fixed amount in every month of the year
- Verification after the end of the year and any adjustment
To use the simplified method, the business owner must meet several conditions. Above all, they must have run the business for the whole previous calendar year (Article 81 section 2h of the Act on Publicly Funded Healthcare Services). This means that people who started their business during the previous year cannot use this simplification; the situation of people who suspended their business in the previous year should also be assessed with caution.
In addition, in the previous year the business owner could have used various forms of taxation, not only ryczałt. The simplified method is available to people who in the previous year were taxed on the tax scale (12% and 32%), the flat 19% tax (podatek liniowy), the tax on qualified intellectual property rights (IP Box) or ryczałt.
Under the simplified method, the health insurance contribution base is set on the basis of the previous calendar year's revenue reduced by social contributions. This base stays the same for the whole calendar year, regardless of the actual revenue earned in the current year
The simplified method works as follows: throughout the year the business owner pays a fixed health insurance contribution set on the basis of the previous year's revenue. After the end of the year it is checked whether the annual contribution matches the actual revenue earned in that year – in the annual settlement reported in the ZUS DRA declaration (monthly contribution return) for April of the following year (Article 81 sections 2e and 2j–2ka). A special case is starting a business in January and the health insurance contribution.
If the actual revenue in the given year was higher than in the previous year and moved the business owner to a higher threshold, they must make an additional payment. The difference between the contribution they should have paid on the basis of actual revenue and the contribution paid during the year is the amount of the additional payment.
If the actual revenue was lower than in the previous year, an overpayment may arise. However, the overpayment is not refunded automatically – the business owner must file the relevant application with ZUS within one month of the deadline for filing the PIT (personal income tax) return (Article 81 section 2n), according to ZUS by 1 June of the following year. The overpayment will be refunded by 1 August at the latest, provided the business owner has no arrears with ZUS.
Standard method of settling the health insurance contribution
Business owners who cannot or do not want to use the simplified method must settle the health insurance contribution using the standard method. In this case the contribution is monitored on an ongoing basis and adjusted to the current level of revenue during the year.
The standard method requires the business owner to track their revenue on a cumulative basis from the beginning of the year. As soon as the revenue threshold that qualifies for a higher contribution is exceeded, the business owner must start paying the higher contribution from the month in which the threshold was exceeded.
In addition, when revenue rises to a higher threshold, the annual contribution is calculated on the base appropriate for the revenue from the whole year (Article 81 section 2e). This means that the business owner must pay the difference between the contribution paid in the lower threshold and the contribution that should have been paid in the higher threshold for all months from the beginning of the year – but only in the annual settlement (Article 81 sections 2j–2l).
Under the standard method, if the business owner exceeds a revenue threshold during the year, they must pay the contribution difference for all previous months of that year. The additional payment is reported in the DRA declaration for April of the following year and paid in one go by the payment deadline for April contributions
The system of additional payments in the standard method can lead to significant one-off financial burdens. For example, if the business owner exceeds the PLN 60,000 threshold in June, they will pay the difference for January to May in the annual settlement, and with a higher threshold and a later month of exceeding it this can be several thousand zloty to be paid in one go.
Example of exceeding a threshold under the standard method:
Mr Kowalski runs a business on ryczałt, and in June 2026 his cumulative revenue exceeded PLN 60,000. Until May he paid a health insurance contribution of PLN 498.35 per month. From June he must pay PLN 830.58 per month, and he will pay the difference for January–May of PLN 1,661.15 (a difference of PLN 332.23 × 5 months) in the annual settlement, in the DRA declaration for April 2027.
The advantage of the standard method is that in the first months of the year the business owner pays a lower contribution, which can help liquidity. However, the unpredictability of the adjustment amounts can be a problem for budget planning.
The choice between the simplified and the standard method should be based on an analysis of expected revenue and preferences regarding liquidity management. Business owners with stable revenue may prefer the simplified method, while those with variable revenue may choose the standard method.
Practical examples of calculating the health insurance contribution
To better understand how both methods of settling the health insurance contribution work, it is worth analysing specific examples showing different scenarios of how a business owner's situation develops during the year.
Example 1: Simplified method - revenue growth
The first example concerns a business owner using the simplified method. In 2025 Mr Adam earned revenue reduced by social contributions of PLN 45,000, which put him in the lowest threshold. In 2026 he chose ryczałt and decided to use the simplified method.
This means that throughout 2026 he will pay a health insurance contribution of PLN 498.35 per month, regardless of the actual revenue earned in that year. If his revenue in 2026 stays below PLN 60,000, he will not have to make any adjustments.
However, if Mr Adam's revenue in 2026 exceeds PLN 60,000, he will have to make an additional payment after the end of the year. Assuming his revenue rises to the level requiring a contribution on a base of 100% of the average wage, the additional payment will be PLN 3,986.76 for the year.
Example 2: Standard method - exceeding a threshold during the year
The additional payment under the simplified method is calculated as the difference between the contribution due on actual revenue and the contribution paid during the year. For Mr Adam it would be the difference between PLN 830.58 per month and PLN 498.35 per month, multiplied by 12 months
The second example illustrates the standard method. Mr Damian chose ryczałt in 2026 and did not opt for the simplified method. In June his cumulative revenue exceeded PLN 60,000.
Until May Mr Damian paid a health insurance contribution of PLN 498.35 per month. From June he must pay a contribution of PLN 830.58 per month. In addition, in the annual settlement (DRA for April 2027) he must pay the difference for January to May, which is PLN 1,661.15.
This adjustment is calculated as the difference between the contribution he should have paid for five months (PLN 830.58 × 5 = PLN 4,152.90) and the contribution he actually paid (PLN 498.35 × 5 = PLN 2,491.75). The difference is PLN 1,661.15.
Under the standard method, the total contribution burden for the whole year will be the same as under the simplified method, but the payments are spread differently over time. Mr Damian pays less in the first months, but must expect a one-off additional payment in the annual settlement.
Deducting the health insurance contribution from revenue
One of the most important changes in the health insurance contribution system for ryczałt taxpayers is the possibility of partially deducting the contributions paid from taxable revenue. This deduction is 50% of the health insurance contributions paid and can significantly affect the business owner's final tax burden.
The deduction works as follows: the business owner can reduce their revenue taxed under ryczałt by half of the health insurance contributions paid. The revenue reduced in this way is the basis for calculating the ryczałt tax at the relevant rate. For other forms of taxation, our guide shows how PIT and CIT advance payments are calculated.
Calculating the benefit of deducting the health insurance contribution:
- Determining the annual health insurance contribution on the basis of the chosen settlement method
- Calculating the amount to deduct (50% of the annual health insurance contribution)
- Reducing revenue by the calculated deduction
- Calculating the ryczałt tax on the reduced revenue
- Calculating the tax saving (deduction × ryczałt rate)
The size of the benefit depends on the ryczałt rate the business owner applies. The higher the ryczałt rate, the greater the benefit of the deduction. For business owners taxed at 8.5% the benefit will be greater than for those taxed at 3%.
Deducting the health insurance contribution from revenue can bring significant tax savings. For a business owner paying the highest health insurance contribution and taxed at the 8.5% ryczałt rate, the annual benefit may be around PLN 760
A practical example shows how the deduction works. In 2026 Mr Jan chose ryczałt at the 8.5% rate and, because his revenue exceeded PLN 300,000 in the previous year, decided to use the simplified method. His monthly health insurance contribution is PLN 1,495.04.
Mr Jan's annual health insurance contribution is PLN 17,940.48 (PLN 1,495.04 × 12 months). He can deduct 50% of this amount from revenue, that is PLN 8,970.24. At the 8.5% ryczałt rate this means a tax saving of PLN 762.47 a year.
Example of deducting the health insurance contribution:
Anna, a business owner, runs a business on ryczałt at 5.5% and pays a health insurance contribution of PLN 830.58 per month. Her annual contribution is PLN 9,966.96. She can deduct 50% of this amount from revenue, that is PLN 4,983.48. At the 5.5% ryczałt rate her tax saving is PLN 274.09 a year.
The deduction applies to contributions paid in the tax year and is made in the month of payment, which means that with monthly payments the business owner can reduce their monthly revenue by 50% of the monthly health insurance contribution paid. For Mr Jan the monthly deduction is PLN 747.52 (50% of PLN 1,495.04).
It is worth noting that since 2022 no form of taxation allows the health insurance contribution to be deducted from tax: under the flat 19% tax it is deducted from income (up to PLN 14,100 in 2026), and on the tax scale not at all. The 50% deduction from revenue is a partial compensation that reduces the disadvantage of ryczałt taxpayers as regards the health insurance contribution.
Reporting obligations and payment deadlines
Business owners on ryczałt must file ZUS DRA settlement declarations with ZUS every month. This obligation applies to all ryczałt taxpayers, regardless of whether they employ staff or run the business alone.
Schedule of reporting obligations:
- By the 20th of each month - filing the DRA declaration for the previous month
- By the 20th of each month - paying the health insurance contribution for the previous month
- By 1 June of the following year - filing the application for a refund of the overpayment (if any)
- By 1 August of the following year - receiving the refund of the overpayment from ZUS
- Once after the end of the year - adjusting the contribution under the simplified method
The deadline for filing the DRA declaration and paying the health insurance contribution is the 20th of each month. This deadline is the same for all payers who are natural persons and does not depend on the size of the business or its legal form.
The DRA declaration must contain information on the revenue earned, the health insurance contribution base and the contribution due. Under the simplified method the base stays the same for the whole year, whereas under the standard method it may change depending on the revenue earned.
Filing DRA declarations with ZUS is a statutory obligation, and failure to do so may result in financial penalties. The declaration must be filed even in months when the business owner earned no revenue; a business owner who pays contributions only for themselves does not file it for the period of business suspension (Article 36a section 3 of the Social Insurance System Act)
When using the simplified method, after the end of the calendar year the business owner must verify the amount of the annual contribution. If there is an underpayment, it must be paid together with the health insurance contribution for April of the following year (Article 81 sections 2k–2l of the Act on Publicly Funded Healthcare Services).
The procedure for refunding an overpayment is more complicated. The business owner must file the relevant application with ZUS, in electronic form only, by 1 June of the following year. An application filed after this deadline is left unexamined (Article 81 section 2o), but the overpayment is not lost – ZUS settles it on the payer's account by the end of the year (Article 81 section 2qa).
The overpayment is refunded by 1 August of the following year at the latest, provided the business owner has no arrears with ZUS. If there are arrears, the refund will automatically be set off against them.
The electronic filing system requires business owners to have suitable accounting software or to use the ZUS online system (PUE ZUS / eZUS, the ZUS online platform). Accounting software usually generates DRA declarations automatically on the basis of the revenue data entered. DRA declarations and ryczałt settlements are a regular part of our bookkeeping services.
Comparison of the methods of settling the health insurance contribution
The choice between the simplified and the standard method of settling the health insurance contribution has significant consequences for managing the business's finances. Both methods lead to the same final contribution burden, but they differ in how payments are spread over time and in how predictable the costs are.
| Criterion | Simplified method | Standard method |
|---|---|---|
| Cost predictability | Very high | Low |
| Liquidity at the beginning of the year | Fixed burden | Lower burden |
| Risk of one-off additional payments | Additional payment in the annual settlement | Additional payment in the annual settlement after exceeding a threshold |
| Administrative simplicity | High | Medium |
| Revenue monitoring | Not required | Continuously required |
The simplified method makes the cost of the health insurance contribution fully predictable throughout the calendar year. The business owner knows the exact contribution from the beginning of the year and can include it in their budget. This predictability is particularly valuable for small businesses with limited financial resources.
However, the simplified method carries the risk of a significant additional payment at the end of the year if revenue rises above the previous year's level. This payment may come as a surprise and affect the business owner's liquidity at the end of the year.
The standard method offers more flexibility in the first months of the year, when the business owner pays a contribution matching actual revenue. If revenue is low at the beginning of the year, the contribution will also be low, which can improve liquidity.
The standard method of settlement can lead to significant one-off burdens when revenue thresholds are exceeded. The adjustment for previous months can amount to several thousand zloty and must be paid in one go in the annual settlement
The risk of the standard method lies in the unpredictability of the adjustment amounts. The business owner may not expect to exceed a revenue threshold and may not prepare financially for a one-off additional payment. This can lead to liquidity problems.
From an administrative point of view, both methods require filing DRA declarations every month, but the standard method requires closer monitoring of revenue and its impact on the contribution. The simplified method is easier to manage because the contribution is fixed.
Recommendation on choosing a method:
The simplified method should be chosen by business owners with stable revenue who value cost predictability and do not expect a significant rise in revenue. The standard method can be chosen by business owners with variable or growing revenue who prefer flexible payments at the beginning of the year.
The decision on the method should be based on an analysis of expected revenue trends, preferences regarding liquidity management and the administrative capacity of the business. Business owners with stable revenue may prefer the simplified method, while those with variable or growing revenue may choose the standard method.
Impact on the business's financial planning
The health insurance contribution for ryczałt taxpayers is a significant item in the business budget and must be properly taken into account in financial planning. Its amount can significantly affect profitability, especially for small businesses with limited margins.
Budget planning must take into account not only the monthly contribution burden but also potential adjustments and additional payments at the end of the year. Under the simplified method, the business owner should set aside funds for a possible additional payment if they expect revenue to rise compared with the previous year.
Financial planning elements related to the health insurance contribution:
- Monthly contribution burden according to the chosen settlement method
- Reserve for adjustments under the standard settlement method
- Reserve for the annual additional payment under the simplified method
- Savings from deducting 50% of the contribution from revenue
- Software costs for handling DRA declarations
- Accounting service costs related to settling the contribution
The amount of the health insurance contribution may also affect decisions about the form of taxation. Business owners with high revenue may consider switching to other forms of taxation, where the health insurance contribution depends on income (9% on the tax scale, 4.9% under the flat 19% tax), although under none of them can it be deducted from tax.
When planning the business budget, take into account not only the monthly health insurance contributions but also potential adjustments at the end of the year. The reserve for this purpose should be at least the difference between the contributions in adjacent revenue thresholds
An analysis of the profitability of different forms of taxation should take into account the total health insurance contribution burden, including the fact that under ryczałt only 50% of the contribution paid is deducted from revenue. For some business owners this may be the deciding factor when choosing a form of taxation.
Liquidity management requires particular attention under the standard settlement method, where adjustments can be significant and unpredictable. The business owner should monitor their revenue and prepare financially for possibly exceeding the thresholds.
The health insurance contribution system for ryczałt taxpayers also requires suitable accounting software that will automatically calculate the contributions due and generate DRA declarations. The cost of such software should be included in the business budget.
