How to organize payment for a period of incapacity for individual entrepreneurs in Poland

Imagine that you are an entrepreneur in Poland and working hard to build your business. And then, out of nowhere, illness comes. What will happen next? As a sole trader, how do you navigate the complex world of sick leave and workers' compensation? In this article we will unravel the secrets of managing sickness benefits and obtaining a medical certificate specifically for JDG in Poland. Be prepared to delve into the ins and outs of ensuring fair pay during non-working periods. Let's dive into this question!

Glossary

• IP - Individual entrepreneur. A person engaged in entrepreneurial activity at his own expense and risk.
• Disability Pay - Compensation paid to employees who are temporarily unable to work due to illness or injury.
• Sick leave - A document confirming the employee’s temporary disability and the basis for payment of sickness benefits.
• JDG - Responsibility for payment of insurance premiums.
• ZUS - Pledge to the National Security Council for social insurance. The body responsible for social insurance in Poland.
• Voluntary insurance for entrepreneurs in ZUS - The ability of an individual entrepreneur to voluntarily insure himself against possible loss of income due to disability.
• Calculation of contributions to ZUS - The procedure for determining the amount of insurance contributions that an individual entrepreneur must pay to the National Social Insurance Department.
• How much do they pay for sick leave for an entrepreneur - The amount of sick pay paid to an individual entrepreneur during the period of incapacity for work.
• Calculation example - Illustrative example showing how the amount of sick pay for a self-employed person is calculated.
• How to apply for a payment in ZUS - Detailed information about the procedure for applying for sickness benefits to the National Social Security Office.
• How to apply to ZUS - Steps and documents required to submit an application for sickness benefit to the National Social Security Administration.
• Insurance against loss of income sick leave through commercial insurance - The ability to insure yourself against loss of income due to disability through a private insurance company.
• What premiums must be paid for commercial insurance, and what payments are possible - Information on the amount of insurance premiums that must be paid for commercial insurance, and what possible disability payments.
• What to Look for When Choosing Insurance - Key factors to consider when choosing an insurance company and insurance product for disability income protection.
• Possible Limitations - Limitations that may exist when receiving sick pay or when choosing commercial insurance.
• Conclusion - The final part of the article, summarizing all the considered aspects of payment for the period of disability for an individual entrepreneur in Poland.
  

Persons working under civil contracts

Who else Can I take advantage of the opportunity to pay sick leave under special conditions? We are talking about persons collaborating with individual entrepreneurs under civil contracts, but who are not JDG.

It is important to note that this type of insurance can also be extended to employees hired by an individual entrepreneur under a work contract. In this case, contributions to ZUS must be paid, but temporary disability insurance (Ubezpieczenie chorobowe) is not necessary.

However, it is worth remembering that employees employed on the basis of labor contracts (umovy o prats) are required to be insured against temporary disability. At the same time, employees employed on the basis of service contracts (umovy o dzelo) are currently not insured by ZUS at all.

So, if you are working with sole traders on some types of civil law contracts, it is important to understand your rights and responsibilities regarding payment for the period of incapacity. Regulation in this area may differ significantly for different types of contracts.

To receive sick leave and JDG benefits, you must contact ZUS and provide the required documents. Please note, however, that JDG benefit payments may change over time, so it is advisable to keep up to date with current rates and payment rules.

Persons working under civil contracts who are not JDG may also be protected in the event of temporary disability. However, in this case, their insurance is not mandatory, and this issue must be discussed with the employer or individual entrepreneur.

Results

Thus, the issue of insurance against temporary disability for persons working under civil contracts requires additional study and specific agreements. Mandatory insurance and procedures for payment of JDG benefits may vary significantly depending on the terms of the employment contract.

According to the rules and regulations, persons working under civil contracts, but who are not JDG, also may benefit from sick pay. However, the compulsoryness of insurance and the procedure for paying JDG benefits may depend on the type of contract and agreement with the employer or individual entrepreneur.

🌟 Expert advice

"When working under civil contracts, it is necessary to carefully study the terms of the employment contract to determine ", whether there is insurance against temporary disability and what benefits may be provided in the event of illness or injury. More detailed advice on this issue can be obtained from a specialist in the field of labor law or insurance." - Beata Tomashevskaya, legal consultant.

Organization of sick leave payment for individual entrepreneurs in Poland

Previously, we have already reviewed the details of registration and receipt of sick leave L4 in Poland. However, how do you organize the payment of JDG benefits when working as a sole trader? In this part of the article we will carefully study the procedure and possibilities of payment for periods of incapacity for entrepreneurs in Poland.

Sick pay issues vary depending on various factors such as illness, pregnancy or hospitalization. During illness at home or in hospital, entrepreneurs can count on a reward in the amount of 80% of the income for the previous year. In case of pregnancy, entrepreneurs have the right to a full remuneration amounting to 100% of the income for the previous year.

For employees, sick leave is paid based on the average salary for the last 12 months before illness. However, entrepreneurs have their own characteristics that should be considered in more detail.

An important point to note is that by default there is no sick leave pay for entrepreneurs. To do this, you must voluntarily insure yourself. In Poland, entrepreneurs can choose between two types of insurance: through the ZUS system or through a commercial company. Let's take a closer look at the difference between these methods.

Certain nuances exist when receiving sick leave and benefits through the ZUS system. Insured entrepreneurs must pay insurance premiums, which depend on the amount of income and the selected insurance package. In the event of illness or disability, entrepreneurs who have valid insurance through ZUS can apply for benefits. It will be paid in the amount of 80% of the income for the previous year.

Another option is insurance through a commercial company. In this case, entrepreneurs can choose more flexible insurance conditions, including various coverages and additional services. Commercial insurance companies offer higher levels of compensation for disability, allowing entrepreneurs to gain greater financial comfort during illness.

So, which insurance method should you choose? It all depends on the individual needs, preferences and capabilities of the entrepreneur. Some entrepreneurs prefer the reliable ZUS system with mandatory contributions and guaranteed benefits. Others are looking for a more flexible option with a commercial insurance company that provides a higher level of benefits and additional services.

Before making a final decision, it is worth reading the experiences and reviews of other entrepreneurs, as well as consulting with experts in the field of insurance and business . Their opinions and advice will help you make the most informed choice.

The optimal choice for an individual entrepreneur

So, we offer you an overview of what is useful to know when choosing insurance coverage and organizing sick leave payment:

What's good to know:

• In Poland, entrepreneurs must take out their own insurance to receive benefits for the period of incapacity for work.
• The ZUS system is state-owned and mandatory for entrepreneurs. Commercial companies offer additional services.
• Benefit payments are 80% of income for the previous year (100% in case of pregnancy).
• The amount of contributions to ZUS depends on the income of the entrepreneur.
• Commercial companies may offer higher compensation and flexible insurance.

Well-chosen insurance coverage can reliably protect you during periods of illness or disability. Therefore, it is recommended to contact our specialists to receive detailed recommendations and advice on insurance issues.

Be insured and protected!

"Don't skimp on insurance. Choose the best coverage and protect yourself from financial risks during your disability." - Maya Krawczyk, Allegro expert.

Voluntary insurance for entrepreneurs in ZUS

How exactly is voluntary insurance against temporary disability obtained in ZUS? In this section we will look at the organization of payment for periods of incapacity for entrepreneurs in Poland. Let's find out how to get sick leave and receive JDG benefits.

Calculation of contributions to ZUS

The health insurance contribution for entrepreneurs is 2.45% of the calculation base. The basis for calculating social insurance contributions is the amount declared by the entrepreneur, which cannot be lower than 60% of the projected average monthly salary. It is important to note that entrepreneurs are not entitled to receive sickness benefits in the first 90 days after the start of paying voluntary insurance contributions. An exception is the situation where the entrepreneur was already insured on another basis before starting the business or if the gap between insurance does not exceed 30 days. During the illness of the entrepreneur in whom the benefit is paid, voluntary insurance contributions will be reduced.

How much is paid for sick leave for an entrepreneur

The amount of sick pay for an entrepreneur depends on the contribution base and is 80% of the base amount. If the illness occurs during pregnancy, the benefit amount increases to 100%. An entrepreneur has the right to receive 1/30 of the monthly benefit amount for each day of illness, regardless of the length of the month. It is important to note that the taxpayer is required to pay income tax on the amount of the benefit received.

Calculation example

To better understand the procedure for calculating sickness benefits, consider the following example. Let's assume that the entrepreneur started his business in January 2022 and pays full ZUS insurance, including voluntary health insurance, based on the minimum accrual base. In July 2023, he fell ill for 5 working days. The basis for calculating benefits will be the average base for calculating contributions for the last 12 months, reduced by 13.71. The calculation for 2022 will be 3066.06 zlotys, and for 2023 - 3590.53 zlotys. The total base for the period will be 39939.54 zlotys, and the base for the month will be 3328.30 zlotys. The cost of sick leave per month will be 2662.64 zlotys, and the cost of a day of sick leave will be 88.75 zlotys. As a result, the entrepreneur will receive benefits in the amount of PLN 2662.64 for the entire period of illness.

How to apply for payment in ZUS

If an entrepreneur is sick and has the right to sick pay, he must submit an application to ZUS to receive payments. The method for submitting an application depends on the type of sick leave received. The most common way is to submit an electronic application through the PUE ZUS system. In this case, the applicant does not have to receive a printout of the sick leave certificate from the doctor, and the application will be automatically sent to ZUS. However, submitting an electronic application does not automatically grant benefits. To receive payments, you must submit a special application for sickness benefits on Form ZAS-53 or a contribution payer certificate on Form Z-3b. The application must indicate the patient's first and last name, address, period of incapacity for work and the series with the number of the issued medical certificate, if any.

How to apply to ZUS

The above payment applications can be submitted through the ZUS PUE system in electronic format or in person to a ZUS branch. If documents are submitted in person, they must be printed and signed. It is important to note that the documents required for the assignment and payment of benefits must be submitted to ZUS within 7 days from the date of receipt. The benefit claim expires 6 months after the end of the period for which the benefit is due. If the application for payment was not submitted for reasons beyond the control of the entrepreneur, the period is counted from the day such reasons disappear.

Important! Regular and timely payment of contributions for voluntary health insurance is a guarantee of receiving benefits for temporary disability. Compliance with all necessary requirements and timely submission of applications will help the entrepreneur receive possible payments.

Table: What you need to know about voluntary insurance for entrepreneurs in ZUS

By following all the necessary requirements and procedures, entrepreneurs in Poland can receive sickness benefits through voluntary insurance in ZUS. Contributions, properly completed applications and timely actions will help provide financial support in the event of temporary disability.

Income loss insurance: benefits and conditions

Self-employed income insurance is an important financial tool that helps protect against loss of income in the event of temporary disability due to illness or accident. In the previous section, we looked at an example of calculating payments in ZUS and learned that income from voluntary insurance is not always high. However, there is an alternative income loss insurance option offered by commercial insurance companies.

What premiums must be paid for commercial insurance, and what benefits are possible

One of the main attractive features of loss insurance income in commercial companies is the opportunity to receive higher payments than in the case of voluntary insurance through ZUS. Payment of commercial insurance premiums must be made regularly in accordance with the chosen tariff, and their size directly affects the amount of payments in the event of an insured event.

For example, with a comparable minimum annual amount of about 900 zlotys, the insurance company will pay two to three times more than ZUS. Moreover, in most policies, the sum insured increases faster as insurance premiums increase than in the case of ZUS. This allows entrepreneurs to receive more generous payments in case of temporary disability.

However, when deciding on insurance against loss of income in a commercial company, it is necessary to take into account the high risk associated with this type of insurance. Unlike ZUS, commercial insurance companies may face financial difficulties or exit the market. Therefore, before choosing a company, it is important to study its reliability and financial stability in order to be sure of receiving payments.

After reviewing the offerings of various insurance companies, you should also pay attention to what industries and professions they aim to cover. Typically, insurance companies target freelance professionals such as doctors, nurses, midwives, lawyers, tax consultants, property appraisers, translators and property managers. However, there are also products designed specifically for IT specialists and other self-employed entrepreneurs.

What to look for when choosing insurance

Choosing loss of income insurance is important, so you should pay attention before concluding a contract special attention to choosing an insurance company and studying the terms of the contract. First, you must read the contract, including the general provisions and specific conditions, to fully understand what is included in the insurance program.

Many insurance companies allow you to tailor the terms of insurance to the individual needs of the entrepreneur, which can increase the level of protection when operating in the chosen market. It is important to consider potential risk factors that could lead to disability and choose insurance that provides adequate protection.

It's also worth paying attention to offers designed for specific industries. Some insurance companies develop special programs for certain professions, taking into account the specifics of the work and the associated risks. This can be especially useful for representatives of the medical field, lawyers, translators and other professions.

Possible restrictions

When choosing insurance against loss of income, it is important to take into account possible restrictions that may be established in the contract. All insurance conditions and exclusions must be clearly stated in the contract to avoid misunderstandings in the event of an insured event.

One of the common insurance exclusions is diagnosing a disease before entering into a contract and failing to report it to the insurer. Such situations may arise, for example, if an entrepreneur has a chronic disease, but he did not draw attention to this when concluding an agreement. In such cases, the ability to receive payments during an exacerbation of a chronic disease may be limited.

In addition, insurance companies may provide additional exclusions for risks such as extreme sports or accidents caused by alcohol or drug use. Therefore, before choosing insurance, it is important to carefully read all the terms and exclusions to ensure you are fully protected.

Optimal choice of loss of income insurance

Determining the best insurance against loss of income requires careful study of proposals and analysis of contract terms . To make the right choice, consider factors such as benefit levels, premiums, additional services and exclusion risk limitations.

When choosing insurance, pay attention to the reputation and reliability of the insurance company, and also take into account the needs and characteristics of your business. Consider offers from various companies and information from experts in the field to make an informed decision.

Note: Before making a decision on insurance, it is recommended to consult with a specialist in the field and consider the offers of different insurance companies to choose the most suitable one.

Summary

Income loss insurance in commercial companies is an important financial instrument for the protection of individual entrepreneurs in Poland. Such insurance allows you to protect against loss of income due to temporary disability due to illness or accident. Payments for commercial insurance can be significantly higher than in the case of voluntary insurance through ZUS, however, this type of insurance is associated with certain risks and restrictions.

When choosing insurance against loss of income, it is recommended that you familiarize yourself with all the conditions and exclusions, study the offers of various insurance companies, and also consult with a specialist in this field. This will help you make informed choices and protect your income in the event of temporary disability.

Conclusion

When working as an individual entrepreneur (IE) in Poland, issues of payment for the period of incapacity, also known as sick leave, are important and require special attention. This article discusses the procedures for obtaining sick leave and paying JDG benefits for individual entrepreneurs.

One important consideration in the area of disability compensation is the choice of temporary disability insurance. Each entrepreneur's personal decision is whether to take out insurance or not. However, it is worth considering that this crucial detail may affect the amount of future sick leave benefits.

It is important to note that many individual entrepreneurs seek to reduce social insurance costs and pay ZUS contributions, calculating them from a minimum base. This may result in little or even no sick leave benefits. A similar situation may arise in commercial companies that choose the lowest level of insurance or refuse it altogether when concluding a JDG contract.

It is important for individual entrepreneurs to refrain from making a cost-effective long-term decision to the detriment of their health and possible sick leave payments. This can increase the risk of unexpected financial expenses and create financial pressure in the event of temporary disability.

Expert recommendations on this topic boil down to the fact that individual entrepreneurs in Poland pay attention to the following points:

1. Assess your risks and the possibility of losing income in case of illness or injury, especially long-term absence from work.
2. Explore the pros and cons of choosing temporary disability insurance, as well as possible benefit levels.
3. Consult a financial advisor or Social Security Professional for more information about your individual case.
4. It is important to follow updates and changes in legislation that may affect payment for the period of incapacity for individual entrepreneurs in Poland.

Conclusions:

So, when working as an individual entrepreneur in Poland, it is important to take into account the issues of payment for the period of incapacity. The choice of insurance and the procedure for obtaining sick leave and payment of JDG benefits require care and awareness. A necessary step to minimize risks is to consult with a financial advisor or social insurance specialist.

Frequently asked questions on the topic “Individual entrepreneur and payment for the period of incapacity: sick leave for JDG in Poland"

Thank you for reading and learning these helpful tips!

We hope that our article helped you understand how to organize payment for a period of incapacity when working as an individual entrepreneur in Poland. Now you have become a real professional in this field! 🎉

As you may have noticed, the procedure for obtaining sick leave and paying JDG benefits can be complex, but with our tips and step-by-step instructions, you can cope with these tasks without any problems.

Don't forget about your health and employee rights. Disability is something we can all experience in life. Now you know how to support yourself financially during illness or injury while maintaining your business.

Good luck in all your endeavors! We hope that our advice will help you successfully manage your individual entrepreneur and receive payment for the period of incapacity for work in Poland.

Thanks for being with us! 💪