On Friday, April 4, 2025, the Sejm, Poland's lower house of parliament, voted to adopt a significant bill aimed at lowering health insurance contributions for entrepreneurs. This legislative change is expected to primarily benefit individuals running sole proprietorships, with approximately 2.5 million entrepreneurs set to gain from the new regulations.
The new law introduces a two-tier system for calculating health insurance contributions. The first part will be a lump sum, set at 9 percent of 75 percent of the minimum wage, while the second part will be a percentage of income exceeding certain thresholds. Specifically, for those taxed on a tax scale or linear tax, the second part will be calculated based on income exceeding 1.5 times the average monthly salary, at a rate of 4.9 percent. For entrepreneurs utilizing a lump sum taxation method, the second part will apply to revenues above three times the average monthly salary, at a rate of 3.5 percent.
Minister of Finance Andrzej Domański emphasized that the entire cost associated with this reform, estimated at around 4.6 billion zlotys, will be covered by the state budget, ensuring that the National Health Fund (NFZ) will not incur any financial burden. "Approximately 2.5 million entrepreneurs, mainly small and medium-sized ones, will benefit from the introduced solution," Domański stated.
The vote on the bill was marked by a notable division within the ruling coalition. A total of 213 MPs voted in favor, while 190 opposed it, and 25 abstained. Notably, Minister of Health Izabela Leszczyna, who had previously expressed opposition to lowering health contributions, surprised many by supporting the bill. This shift raised eyebrows among her colleagues, especially within the ruling coalition.
Critics of the bill, including members of the Left and Law and Justice (PiS), voiced strong opposition during the parliamentary debate. Marcelina Zawisza from the Razem party warned that passing the law would have negative consequences for public health funding. "You are taking money away from patients. If the Minister of Finance has 6 billion zlotys lying around, I can tell you what that money should be used for—overdue payments to healthcare providers," she argued passionately.
Joanna Wicha, also from the Left, questioned the fairness of the proposed changes, asking, "Do you really think everyone in Poland earns as much as we do here and can afford private healthcare? Let's not be selfish." This sentiment echoed the concerns of many who worry that the changes could lead to a privatization of public health services.
In response to these criticisms, Domański reiterated that the government is taking steps to rectify the economic impacts of the previous Polish Deal, which had been criticized for its adverse effects on entrepreneurs. He highlighted that the new regulations would not alter the health insurance contributions paid by full-time employees, which will remain at 9 percent.
The changes are set to take effect from the beginning of 2026, and the government is optimistic that they will provide much-needed relief to the struggling small business sector. According to Piotr Juszczyk from inFakt, under the new tax scale, entrepreneurs with a monthly income of up to 12,823.77 zlotys will see a benefit of 839.18 zlotys, while those earning above 20,000 zlotys will experience the same financial relief.
However, concerns remain regarding the potential long-term impact on the NFZ, especially as the government eliminates the possibility of deducting health insurance contributions from income tax. This decision has raised alarms about the sustainability of public health financing in Poland.
As the bill moves to the Senate for further discussion, the debate over health insurance contributions is likely to continue, reflecting broader tensions within Polish politics regarding healthcare funding and the role of government in supporting entrepreneurs. The outcome of this legislative process will be closely watched by both supporters and detractors of the proposed changes.
Overall, the passage of this bill marks a significant shift in Poland's approach to health insurance for entrepreneurs, with the potential for substantial financial relief for millions, but also raises critical questions about the future of public healthcare funding in the country.
