Payment of social security contributions on preferential terms

Service

Farmers who run a business are in some cases excluded from their insurance. This takes place, inter alia, when they exceed the annual tax limit on business activity. In such a situation, the law provides for a shift to preferential rules for paying contributions. For this to be possible, several conditions must be met.

Pursuant to the Act on the social insurance system, a person starting a business activity may pay social insurance contributions from the declared amount, not lower than 30% of the minimum wage, if:

  • the period of 24 months has not passed from the day of commencement of operations,
  • in the last 60 months preceding the commencement of business activity, she did not conduct any non-agricultural business activity,
  • does not perform any economic activity for the former employer.

Due to the fact that the preferential rules apply only to the period of 24 months - from the date of commencement of economic activity - the taxpayer is entitled to the reduced contributions until the expiry of this period.