Contribution holidays (wakacje składkowe) for business owners are one of the most important changes to the Polish social insurance system introduced in 2024. The option of being exempt from paying ZUS (Social Insurance Institution) contributions for one month a year nevertheless raises many questions among business owners. The most common concerns relate to the effect of this relief on future benefits paid by the Social Insurance Institution. Does taking contribution holidays mean lower sickness and maternity benefits or a lower pension? How will financing contributions from the state budget affect the individual accounts of insured persons?
Contribution holidays were introduced to ease the financial burden on people running a JDG (sole proprietorship) and on partners in civil-law partnerships (spółka cywilna). The relief covers an exemption from paying contributions to pension, disability, accident insurance, the Labour Fund, the Solidarity Fund and voluntary sickness insurance for one chosen month in a calendar year (Articles 17a, 17b and Article 32(2) of the Social Insurance System Act). Social insurance contributions are financed from the state budget, which means that the business owner keeps continuity of insurance; Labour Fund (FP) and Solidarity Fund (FS) contributions are simply not paid for that month.
Contribution holidays are available to people running non-agricultural business activity registered in CEIDG (Central Register and Information on Economic Activity). They can be used by sole proprietors and partners in civil-law partnerships registered with insurance title codes 05 10, 05 90 and 05 70
It is particularly important to understand how the state budget finances the contributions and how this affects future benefits. Under the Social Insurance System Act, contributions financed by the state are calculated on the lowest contribution base that applies to the given business owner. This means different amounts depending on which type of ZUS scheme the business owner uses.
How ZUS contribution holidays work
Contribution holidays were introduced from 1 November 2024 by the Act of 9 May 2024 amending the Social Insurance System Act and certain other acts (Journal of Laws (Dz.U.) 2024 item 863). Business owners can choose one month in a calendar year for which they do not have to pay contributions to their own social insurance. A separate matter is ZUS contributions with a job and a business, when the business owner is also employed.
The exemption covers the following contributions:
- pension contribution
- disability contribution
- accident contribution
- Labour Fund contribution
- Solidarity Fund contribution
- voluntary sickness contribution (if certain conditions are met)
The health insurance contribution is not covered by contribution holidays and must be paid in the full monthly amount. The exemption concerns contributions due for that month, so the business is not suspended – the business owner runs it as usual and may earn revenue
A key aspect of contribution holidays is how they are financed. Under Article 16(4a) of the Social Insurance System Act, pension, disability, sickness and accident contributions for the exempt month are financed through a subsidy from the state budget to the Social Insurance Fund. This means that the business owner keeps continuity of insurance and the contributions are actually paid – just not by the business owner.
The amount of contributions financed from the state budget depends on the type of ZUS scheme the business owner uses:
- Preferential ZUS - contributions financed on a base of 30% of the minimum wage
- Small ZUS Plus - contributions financed on an individually set base, but not lower than 30% of the minimum wage (we prepare ZUS settlement returns for clients who use our HR and payroll services)
- Full ZUS - contributions financed on a base of 60% of the forecast average wage
In the month of contribution holidays the contribution base cannot be reduced proportionally. For the chosen month the payer will have contributions financed on the full base applicable under the given ZUS scheme
An important restriction concerns declaring a higher contribution base. Under Article 18d of the Social Insurance System Act, the rules do not allow you to declare a higher contribution base for the month covered by contribution holidays than the one set by law. Business owners cannot pay additional contributions themselves on the excess over the base financed from the state budget.
Who can use contribution holidays
ZUS contribution holidays are aimed at a strictly defined group of business owners. The basic criterion is running a non-agricultural business (Article 8(6)(1) of the Social Insurance System Act — usually with an entry in CEIDG) on a small scale: no more than 10 insured persons registered in the month before the month of the application, and revenue not exceeding the equivalent of EUR 2 million in at least one of the 2 previous years (or no revenue in both years). In the month before the application, the business owner must also be covered by pension, disability and accident insurance as a person running the business (Article 17a(1)). A micro-business owner can choose any one month a year in which they will not pay ZUS, Labour Fund and Solidarity Fund contributions.
Partners in civil-law partnerships can also use ZUS contribution holidays, provided they meet all the other criteria for the relief. Each partner can apply for the exemption individually, and only people registered on the partner's own payer account count towards the limit of 10 insured persons — not those registered by the civil-law partnership (ZUS explanations)
An important restriction is the exclusion of people who run their business for their former employers — those for whom, in the year the business started or the year before, they performed tasks within the scope of the business under an employment relationship (Article 17a(1)(3)). This restriction is meant to counter the practice of pushing employees into self-employment. It concerns situations in which employers force their employees to give up an employment contract and set up a business in order to avoid employer obligations.
Practical example: Anna runs a JDG as a graphic designer. She employs 2 people on employment contracts and has revenue below EUR 2 million a year. She can use a ZUS contribution holiday, choosing for example August as the exemption month. In that month she will not pay social insurance contributions (PLN 1,926.76 under the full ZUS scheme in 2026, including sickness insurance, FP and FS), but she will still have to pay the health contribution (under the tax scale (12% and 32%) or the flat 19% tax (podatek liniowy), at least PLN 432.54 from February 2026).
Independence from the form of taxation
One of the biggest advantages of contribution holidays is that they work with any form of income tax. They can be used by business owners taxed under the general rules according to the progressive tax scale, by people on the flat tax, paying 19 percent of income, and by business owners taxed under the flat-rate tax on recorded revenue (ryczałt).
Business owners taxed under the tax card (karta podatkowa) can also use contribution holidays. Article 17a does not make the right to the exemption from ZUS contributions depend on the form of income tax
Note that contribution holidays apply only to the business owner's own social insurance contributions and do not cover the people they insure. This means the exemption does not apply to employees, contractors or cooperating persons engaged by the business owner.
The exemption is granted as de minimis aid (Article 17b(2)), which means it is subject to certain public aid limits — the available limit must be at least equal to the total contributions covered by the exemption. Business owners must remember this restriction when using other forms of public support.
Exclusions and restrictions on access to the relief
Certain groups of business owners cannot use ZUS contribution holidays. The first excluded group is people without a formal business, i.e. those running unregistered activity (działalność nierejestrowana). The second group is business owners using the start-up relief (ulga na start), who have recently started a business and are not covered by social insurance, paying only the health contribution — so they do not meet the condition of being insured in the month before the application (Article 17a(1)(4)).
Another excluded category is creators and artists, i.e. people engaged in creative artistic activity, such as painters, musicians or writers. Partners in single-member limited liability companies, limited partnerships, general partnerships and professional partnerships cannot use it either — they are insured under a different title than running a business (Article 8(6)(4) of the Social Insurance System Act; creators and artists — point 2), and the exemption applies only to people covered by Article 8(6)(1).
Exclusions from ZUS contribution holidays cover:
- People running unregistered activity
- Business owners using the start-up relief
- Creators and artists
- Partners in general, limited and professional partnerships and single-member sp. z o.o. (limited liability company)
- Payers who had more than 10 insured persons registered in the month before the application (including themselves)
- Business owners exceeding the revenue limits
- People providing services to former employers
A payer who had more than 10 people registered for insurance in the month before the month of the application cannot use contribution holidays — counting themselves, employees and contractors registered even for one day (Article 17a(1)(1); ZUS explanations). The relief is aimed at micro-business owners, who are the group most sensitive to rising ZUS contribution costs
How contribution holidays affect sickness and maternity benefits
Sickness and maternity benefits are the area where the effect of contribution holidays is most direct and noticeable. Business owners are often concerned that using the relief may reduce their future benefits, especially if they are planning maternity leave or expect to need sickness benefit (zasiłek chorobowy).
The basic conditions for receiving sickness and maternity benefits remain unchanged. A business owner is entitled to sickness benefits after at least 90 days of sickness insurance. Maternity benefit, on the other hand, is available from the 1st day of sickness insurance.
Sickness insurance contributions will be financed from the state budget in the month of contribution holidays provided that the business owner was voluntarily covered by this insurance in the month in which the RWS application was filed and in the month preceding the application (Article 17a(3) of the Social Insurance System Act)
The moment you join voluntary sickness insurance is crucial. If a business owner joins this insurance only in the month in which the application is filed, or in the month for which they want to use contribution holidays, the sickness contribution will not be financed from the state budget. The requirement to be covered by sickness insurance in both of those months comes directly from the Act.
A particularly important issue concerns business owners who pay contributions on a higher contribution base. When contribution holidays are used, contributions will be financed only on the lowest base applicable to the given business owner, with no option to pay contributions on the excess.
Ms Matylda runs a business and has been registered for social insurance, including voluntary sickness insurance, since December 2022. She currently pays social contributions on a higher base of PLN 10,000. She wants to take contribution holidays in December 2026 (she files the RWS application in November 2026). Contributions will be financed only on a base of PLN 5,652 (60% of the forecast average wage for 2026), and Ms Matylda will not be able to pay contributions on the excess of PLN 4,348.
This restriction directly affects the amount of future benefits. When the benefit base is calculated, the lowest contribution base will be used for December, which may result in a lower benefit. For business owners who are planning maternity leave and deliberately pay contributions on a higher base, this may mean a significant difference in the amount of maternity benefit they receive.
The pension and disability contribution base for the exempt month is the lowest contribution base applicable to the insured person. The rules on proportional reduction of the contribution base do not apply
When planning contribution holidays, business owners should think carefully about the timing of the decision in the context of planned sickness or maternity benefits. If one month in the 12 months before planned maternity leave has a much lower contribution base, it will affect the average benefit base.
Consequences for pensions and disability pensions
The long-term consequences of contribution holidays mainly concern future old-age and disability pensions. Here the mechanism of financing contributions from the state budget is key to keeping continuity of insurance and correctly calculating future benefits.
Contributions financed from the state budget under contribution holidays will be credited to the insured person's individual account. This means that the period of the relief will not be treated as a break in paying contributions, but as a normal period of insurance. This is a fundamental difference compared with a situation where a business owner genuinely does not pay contributions.
In the Polish pension system there are two key aspects affected by paying contributions:
- Entitlement to benefits - contributory and non-contributory periods that give the right to an old-age or disability pension
- Amount of benefits - the total of contributions recorded on the insured person's account
For a disability pension and a universal old-age pension calculated under the new rules, what matters is whether contributions have been paid. Periods for which no contributions were paid, even if there was an obligation to be insured, are not taken into account for people who must pay their own contributions
For business owners it is particularly important that contribution holidays do not create a gap in contributions. The contributions are actually paid by the state budget, so the period will count towards the insurance record. For a disability pension, where the required contributory periods are needed, the month covered by contribution holidays will be treated as a full contributory period.
The amount of a future pension in the defined-contribution system depends on the total of all contributions recorded on the insured person's account. The account records not only payments but also the indexed value of pension contributions. Contributions financed from the state budget under contribution holidays will be indexed in the same way as contributions paid by the business owner.
| ZUS scheme | Base financed from the budget | Monthly pension contribution (2026) | Effect on future pension |
|---|---|---|---|
| Preferential ZUS | 30% of the minimum wage (PLN 1,441.80) | PLN 281.44 | Standard effect |
| Small ZUS Plus | Individual, min. 30% of min. wage | Variable | In line with the base |
| Full ZUS | 60% of the forecast average wage (PLN 5,652) | PLN 1,103.27 | Full effect |
However, for business owners who pay contributions on a higher base, contribution holidays may mean a temporary reduction of the amount credited to the pension account. If a business owner regularly pays contributions on a base of PLN 10,000, and in the contribution holiday month in 2026 the contribution is financed only on a base of PLN 5,652, the difference will not be made up.
Business owners who pay contributions on a higher base cannot pay the difference in the month of contribution holidays. This will affect the total contributions on the pension account, although the effect will be spread over the whole working life
Contribution holidays and the right to unemployment benefit
Unemployment benefit may matter to business owners if they close their business. To receive it, you must have paid Labour Fund contributions for a certain period before registering with the labour office.
In the month of contribution holidays, Labour Fund and Solidarity Fund contributions are not paid – the exemption also covers them, but without financing from the state budget (Article 32(2) of the Social Insurance System Act). For the right to unemployment benefit, what matters is whether this month counts towards the required period.
The basic condition for a business owner to receive unemployment benefit is paying social insurance and Labour Fund contributions on a base of at least the minimum wage for at least 365 days in the 18 months before registering as unemployed (Article 218(1)(4) of the Act of 20 March 2025 on the labour market and employment services). Only people who pay Labour Fund contributions are entitled to this benefit, which is why doubts could arise about the period financed from the state budget.
Under Article 218(2)(13) of the Act on the labour market and employment services, the period in which the business owner's contributions were financed from the state budget under contribution holidays counts towards the required 365-day period, provided that the base for social insurance and Labour Fund contributions was at least equal to the minimum wage
As a result, business owners who use contribution holidays do not lose the right to unemployment benefit because of it. The month covered by the relief counts towards the period giving entitlement to the benefit, provided that the contribution base was at least equal to the minimum wage.
For business owners who are considering closing their business in the future, contribution holidays as a rule do not threaten their right to unemployment benefit. They can use the relief without worrying that the month will drop out of the qualifying period.
The amount of unemployment benefit does not depend on the amount of Labour Fund contributions paid – it is an amount set in the Act, depending on how long the benefit has been received and on the length of service (120% with at least 20 years of service, Article 224 of the Act on the labour market and employment services). So the contribution holiday month will not affect the amount of a future benefit.
A strategic approach to contribution holidays
When planning contribution holidays, business owners should take a strategic approach that considers both the immediate financial benefits and the long-term consequences for ZUS benefits. The choice of month and the timing of the relief can have a significant effect on future benefits.
The most important factor to consider is planned maternity or parental leave. Business owners who plan to receive maternity benefit in the near future should be especially careful with contribution holidays. The maternity benefit base is set on the basis of the average from the 12 calendar months before the month in which the incapacity for work due to illness or maternity arose.
A business owner planning maternity leave in March 2027 who regularly pays contributions on a base of PLN 8,000 is considering contribution holidays in December 2026. In this case one of the 12 months taken into account when setting the benefit base will have a much lower base, which will reduce the average and affect the amount of maternity benefit.
For business owners who pay contributions on a higher base, it is essential to understand that contribution holidays mean a temporary reduction of that base to the minimum applicable under the given ZUS scheme. The difference cannot be paid, which may affect all benefits that depend on the contribution base.
Optimal strategies for using contribution holidays:
- Choosing a low-revenue month - if the business is seasonal
- Avoiding periods before planned benefits - especially maternity benefit
- Coordinating with other reliefs - e.g. with suspending the business in other months
- Long-term planning - taking into account the effect on future pension benefits
- Analysing the financial benefits - comparing the savings with potential losses
Business owners running a seasonal business can strategically choose the month with the lowest revenue or a period when the business is idle. Contribution holidays do not require the business to be suspended, so they can be used flexibly
It is particularly important to plan contribution holidays in the context of other available reliefs and exemptions. Business owners can combine contribution holidays with other ways of reducing business costs, such as suspending the business in other months of the year or using tax reliefs.
How to apply for contribution holidays
To use contribution holidays you must file the relevant application with ZUS. The procedure is relatively simple, but you must meet certain deadlines and formal conditions. The application is filed on the RWS form (application for exemption from paying contributions).
Basic procedural requirements:
- Filing deadline - in the month preceding the month to be covered by the exemption (Article 36d(1) of the Social Insurance System Act)
- Form of application - only electronically, through a PUE ZUS / eZUS (ZUS online platform) profile (Article 36d(4))
- Documents - the RWS application with statements that the conditions are met (under penalty of criminal liability) and information on de minimis aid received (Article 36d(2)–(3))
- Formal conditions - the business must be active in the chosen month
- Limits - one month per calendar year
The first month for which contribution holidays could be used was December 2024 (application filed in November 2024). The application must be filed in the month preceding the month for which the business owner wants to use the exemption. ZUS leaves an application filed at a different time without consideration, and an application that has already been decided cannot be withdrawn or corrected (Article 36d(5) and Article 36e(3))
The fact that the business is active in the chosen month is crucial. Unlike suspension of business activity, contribution holidays do not require you to stop running the business. The business owner can carry out all business tasks as usual, sign contracts, issue invoices and earn revenue.
ZUS checks whether the conditions for contribution holidays are met:
- running non-agricultural business activity registered in CEIDG and being covered by pension, disability and accident insurance on this basis in the month preceding the month in which the application is filed
- registration with the relevant insurance title code (05 10, 05 90, 05 70)
- no more than 10 insured persons registered in the month preceding the month of the application, and revenue not exceeding the equivalent of EUR 2 million in at least one of the last 2 years (or no revenue in those years)
- not working for a former employer within the scope of former employee duties, and a sufficient de minimis aid limit (Article 17a(1)(3), Article 17b(2))
- filing the application on time
For sickness insurance, an additional condition is voluntary coverage by this insurance in the month in which the application is filed and in the month before it (Article 17a(3)). If a business owner joins sickness insurance only in the month in which the application is filed or in the month for which they apply for contribution holidays, the contribution for this insurance will not be financed from the state budget.
How to file the RWS application step by step
The application procedure involves the following steps:
- Log in to PUE ZUS (eZUS)
- Choose the RWS form
- Fill in all the required data
- Indicate the month in which you want to take the holiday
- Make the declaration that you meet the conditions
- Send the application electronically
- Wait for the ZUS decision, delivered via PUE/eZUS (Article 36e(1))
ZUS has confirmed that applications for contribution holidays can be filed by authorised representatives of business owners, including accounting offices. The condition is obtaining the payer's declaration that they meet the conditions for the contribution holiday
The application can be filed in any month (for the following month), so business owners have time to prepare and file it, and they can correct any errors or withdraw the application — but only until it is decided (ZUS explanations).
Also remember that the business owner feels the financial effect of the contribution holiday only in the month after the chosen exemption month, because contributions for a given month are paid in the following month (Article 47(1) of the Social Insurance System Act).
If a business owner applied for a ZUS contribution holiday in November 2024 for December, they felt the effect of the relief only in January 2025. Similarly, an application filed in March 2026 for April will bring savings only in May 2026
Reporting contribution holidays in ZUS declarations
Reporting a ZUS contribution holiday in settlement declarations requires the right insurance title codes. In the ZUS RCA report (individual monthly contribution report) settled with the ZUS DRA declaration (monthly settlement declaration), you must enter the correct code marking the month covered by the contribution holiday.
Three new insurance title codes were introduced for different groups of business owners (currently Annex 24 to the regulation on ZUS document templates, Dz.U. 2026, item 518):
- Code 05 14 - for business owners on full ZUS (base of 60% of the forecast average wage)
- Code 05 74 - for business owners on the 2-year preferential scheme (base of 30% of the minimum wage)
- Code 05 94 - for business owners on the Mały ZUS Plus relief (income-based contribution base)
For the month of the exemption, the business owner must send ZUS a DRA declaration with the relevant reports, the correct insurance title codes and the contributions financed from the state budget. They do this after receiving a positive decision; if ZUS does not decide the application before the settlement deadline, the business owner settles contributions under the existing rules and then files a correction (ZUS explanations)
The settlement procedure involves several steps. The business owner must send a ZUS RCA report for themselves with the relevant code and the social insurance contributions financed from the state budget. They must also send a separate report with their current insurance title code and the health insurance contribution (and the voluntary sickness contribution, if the exemption did not cover it).
If the business owner registers other people for insurance, additional ZUS RCA reports must be sent for the other insured persons. The whole process ends with a ZUS DRA declaration covering the contributions from all the reports created.
Effect of contribution holidays on income tax
ZUS contribution holidays also affect business owners' tax settlements. Business owners taxed under the tax scale or the flat tax can choose between treating ZUS contributions as tax-deductible costs and deducting them from income.
However, the exemption from ZUS contributions increases the tax base, which means the business owner will pay more tax: only contributions actually paid can be deducted from income (Article 26(1)(2)(a) of the PIT Act), and the amounts of contributions covered by the exemption are tax-free (Article 21(1)(160)), so for the holiday month there is nothing to deduct or treat as a cost. This can partly offset the financial benefits of contribution holidays, especially for business owners with higher income.
Calculation example: Tomasz runs an online shop, uses the flat 19% tax and pays full ZUS (PLN 1,926.76 a month in 2026, including sickness insurance, FP and FS). If he takes a contribution holiday in July, he will save PLN 1,926.76. His income in that month will be PLN 8,000, and he cannot deduct the unpaid contributions from income or treat them as tax-deductible costs, so he will pay about PLN 366 more tax (19% × PLN 1,926.76). The real saving is about PLN 1,561 (before taking into account the health contribution, which under the flat tax depends on income).
Before using contribution holidays, it is worth carefully analysing your tax and financial situation. The calculation should take into account both the savings on ZUS contributions and the potential increase in the tax burden.
