Moving from KRUS (Agricultural Social Insurance Fund, Kasa Rolniczego Ubezpieczenia Społecznego) to ZUS (Social Insurance Institution, Zakład Ubezpieczeń Społecznych) has many consequences for people running a business. One of the most important issues is settling the health contribution correctly in the year in which you move from one insurance system to the other. In a ruling of 10 May 2024 (DI/200000/43/401/2024), ZUS (its Lublin branch) clarified an important question: business income earned while you were covered by farmers' social insurance is not included in the annual health contribution base. If a family member helps in the business, it is also worth knowing how deducting a cooperating person's ZUS contributions from income works.
Social insurance systems for farmers who run a business
Farmers in Poland who run a non-agricultural business can be covered by one of two social insurance systems. The first is farmers' social insurance administered by KRUS; the second is general social insurance administered by ZUS. Which system applies depends on meeting specific legal conditions, and the choice has significant financial consequences for the business owner.
Farmers' social insurance in KRUS covers farmers and the household members and helpers who work with them, provided they are Polish citizens or are entitled to work in Poland. The system has separate accident, sickness and maternity insurance and old-age and disability pension insurance
Conditions for staying in KRUS while running a business
A farmer or household member who has been fully insured in KRUS without a break for at least 3 years can keep this insurance after starting a non-agricultural business. However, this depends on meeting a number of strict conditions set out in the law.
- Filing a statement with KRUS on continuing the insurance within 14 days of starting the business
- Continuing to run agricultural activity, or working permanently on a farm of more than 1 conversion hectare (ha przeliczeniowy)
- Not being employed under an employment contract or in service with any employer
- Not having an established right to an old-age or disability pension or other social insurance benefits
- The income tax due on the business for the previous tax year not exceeding the annual threshold (for 2025 – PLN 4,576, for 2026 – PLN 4,713; the amount is announced every year). Calculating the previous year’s tax and contributions is a standard element of our bookkeeping services.
Starting a non-agricultural business also includes resuming a business after a period of suspension and changing the type or scope of the business under the Polish Classification of Activities (PKD). If the required conditions are not met, KRUS insurance ends automatically
Definition of a non-agricultural business
For the purposes of farmers' social insurance, a non-agricultural business means a business run in Poland by individuals under the Entrepreneurs' Law (Prawo przedsiębiorców) of 6 March 2018. The definition excludes partners in commercial companies and people practising a liberal profession within the meaning of the rules on flat-rate income tax.
- The business must be run in line with the Entrepreneurs' Law
- Revenue from the business is business revenue within the meaning of PIT (personal income tax)
- Partners in commercial companies are excluded
- People practising liberal professions are excluded to a certain extent
Health insurance when moving between the systems
Health insurance when moving from KRUS to ZUS needs special attention because contributions are calculated and paid differently. Under the Act on publicly funded health care services, compulsory health insurance covers people who meet the conditions for social insurance or farmers' social insurance. Similar questions about compulsory contributions arise with other sources of income; one example is tax and ZUS on management board member remuneration.
Farmers and their household members pay health insurance contributions in KRUS, while people running a non-agricultural business pay them in ZUS. Changing the insurance system therefore means that your contribution obligations move from one institution to the other
Rules for paying the health contribution in each system
| Insurance system | Institution | Contribution base | How it is settled |
|---|---|---|---|
| KRUS | Agricultural Social Insurance Fund | Set by the rules for farmers | Fixed contribution: PLN 1 for each full conversion hectare |
| ZUS | Social Insurance Institution | Income (tax scale, flat 19% tax) or revenue (ryczałt) | Contribution depends on income or on the revenue band |
| ZUS (tax scale) | Social Insurance Institution | 9% of income | Annual settlement |
ZUS ruling – a business owner's case
The business owner who asked ZUS for a ruling was running a non-agricultural business while fully insured in KRUS. The situation changed in August 2023, when he switched to ZUS insurance and started paying health contributions of 9% of the income earned.
The business owner's question about the annual settlement
His main doubt concerned how to calculate the annual health contribution for 2023. He was not sure whether the health contribution base should include:
- Only the income earned from August to December 2023 (the period of ZUS insurance)
- The income earned in the whole of 2023, including the period of KRUS insurance
The business owner argued that since he had been covered by ZUS only from August 2023, the annual health contribution should be calculated only on the income earned between August and December 2023. In his view, income from the period of KRUS insurance should not be subject to the ZUS health contribution.
The business owner's position was based on the logical assumption that KRUS and ZUS insurance are two separate systems that should not overlap when health contributions are calculated. He pointed out that there was no legal basis for including income from the period when he was not covered by health insurance in ZUS
ZUS position in the ruling
In its ruling, ZUS analysed the issue in detail and took a clear position. ZUS stated that the obligation to be covered by health insurance, payment of the contribution and the contribution base are governed by the Act on publicly funded health care services.
Legal basis of the decision
Under Article 81 section 2 of the Act on publicly funded health care services, the annual health contribution base for people running a non-agricultural business is the business income determined for the calendar year. This income is calculated as the difference between revenue earned and the tax-deductible costs of earning it.
- The base is the income determined for the whole calendar year
- The income is reduced by social insurance contributions paid
- Revenue not subject to tax is excluded
- The base applies from 1 February of a given year to 31 January of the following year
- This period is called the contribution year
The key element of the ZUS ruling was that the business period used to determine the annual health contribution base does not include periods in which the person is not covered by health insurance on account of running a non-agricultural business
Special rules for people moving from KRUS to ZUS
ZUS clearly stressed that special rules apply to people who, for part of the year, meet the conditions for farmers' social insurance under Article 5a of the Act on farmers' social insurance. For such people, revenue for the period of KRUS insurance is not taken into account when calculating the annual health contribution on their business. The annual contribution is also affected by when the business was set up — starting a business in January and the health contribution is the subject of another article.
- Periods of KRUS insurance are not taken into account when calculating the ZUS health contribution
- The base consists only of revenue from the period of ZUS insurance
- This rule prevents the same revenue from being charged with contributions twice
- This approach limits the risk of an unfavourable financial position for the business owner
Practical consequences of the ZUS ruling
The ruling issued by ZUS is of real practical importance for business owners in a similar situation. The ZUS position confirms that the business owner's reasoning was correct and shows how ZUS approaches similar cases.
ZUS accepted as correct the business owner's position that business revenue earned while covered by farmers' social insurance is not included in the annual health contribution base. The ruling binds ZUS in the applicant's case (Article 35 section 2 of the Entrepreneurs' Law); for other business owners in a similar situation it is guidance, and protection comes from their own individual ruling
Benefits for business owners
The ZUS ruling brings measurable financial benefits for business owners who move from KRUS to ZUS during the tax year:
- The same revenue is not charged with contributions twice
- A lower health contribution base in ZUS
- Settlement only for the period of ZUS insurance
- A lower risk of overpaying health contributions
- Clear settlement rules in the year of moving between the systems
For example, a business owner with annual income of PLN 60,000 who moved from KRUS to ZUS in August will settle the health contribution only on the part of the income for the period from August to December, not on the whole annual income.
How to move from KRUS to ZUS
Moving from farmers' social insurance in KRUS to general social insurance in ZUS requires following a set procedure and deadlines. The business owner has to complete several formalities to avoid problems with continuity of insurance and correct settlement of contributions.
Formal obligations when changing the insurance system
- Reporting the end of KRUS insurance on time
- Registering for insurance in ZUS (form ZUS ZUA) within 7 days of the obligation to be insured arising
- Settling any outstanding contributions in both institutions
- Passing the necessary documents between KRUS and ZUS
- Updating the data in the IT systems of both institutions
It is crucial to keep health insurance continuous when moving between the systems. A gap in insurance can mean losing the right to health care services and having to pay the full cost of treatment yourself
Documents needed for the change
- A statement that you no longer meet the conditions for KRUS insurance
- Registration for social and health insurance in ZUS (ZUS ZUA)
- Documents confirming that you run a business
- The tax return for the previous year or a copy of it
- Documents confirming the amount of income earned
Settling the health contribution in practice
Applying the ZUS ruling in practice requires recalculating the health contribution base so that it covers only the period in which the business owner was actually insured in ZUS. The process involves several calculation steps and requires dates and amounts to be determined precisely.
How to calculate the health contribution
Calculating the health contribution for a business owner who moves from KRUS to ZUS during the year requires separating the income from the period of ZUS insurance:
- Establish the exact date of the move from KRUS to ZUS
- Determine the business income for the whole year
- Determine the income (revenue minus costs) earned in the period of ZUS insurance
- Apply the 9% rate (tax scale; with the flat 19% tax, 4.9%) to that income
- Take into account the health contribution instalments already paid
When determining the income share, you should take into account how revenue was actually spread over time, not just a split by calendar. If the business is seasonal, this can significantly affect the final amount of the health contribution
Practical settlement example
| Period | Insurance status | Monthly income | Health contribution |
|---|---|---|---|
| January–July 2023 | KRUS | PLN 15,000 | Paid in KRUS |
| August–December 2023 | ZUS | PLN 18,000 | 9% in ZUS (PLN 1,620 per month) |
| Total for the year | Change of system | PLN 195,000 (7 × PLN 15,000 + 5 × PLN 18,000) | PLN 8,100 in ZUS (5 × PLN 1,620) |
