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President signs off on 2-point rise in employer contributions to incapacity fund


President Bronislaw Komorowski on 28 December signed into law a 2-point increase in incapacity-benefit contributions paid by employers effective from 1 February 2012.

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. The coverage ratio of the incapacity fund is forecast to rise to 75% in 2012 from just under 60% in 2011 thanks to its enactment.

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