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Parliament passes 2-point rise in employer contributions to incapacity fund


The Sejm on 21 December voted to pass a 2-point increase in incapacity-benefit contributions paid by employers effective from 1 February 2012. The following day the bill was approved by the Senate. It now goes before the President for signature.

The legislation, which lifts the employer’s contribution to 6.5% of the gross salary while leaving the worker’s contribution unchanged at 1.5%, marks the first and highly important step in the government’s package of fiscal consolidation measures announced by Prime Minister Donald Tusk in November. It is expected to bring revenues of PLN 7bn (approx. €1.5bn) annually, helping reduce the funding gap in the public social insurance system.

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