Exceeding the annual base contributions for pension and disability

July 2, 2021

The sum of annual base contributions is announced on the Polish monitor at the beginning of each year. For the year of 2021, the sum is PLN 157 770,00.

What contributions must be still paid after exceeding the annual base contributions?

The article of October 13, 1998 about the system of social security, allows for a thirtyfold change of the limit. The basis of this change is the increase of the forecasted average wage. Upon exceeding the limit, i.e. 157 770 zl in 2021, It is no lopnger required to pay contributions for pension, but it is required to pay contributions for other types of insurance, namely: sickness, accident, FGSP, the labor fund and health insurance. It should be remembered that exceeding the base sum does not affect the contributions for employee Capital Plan (PPK), they are still collected and charged on the basis of sickness insurance. If the employer pays the contributions for Bridging Pension Fund (FEP), upon exceeding the annual base contributions for pension, the employer is exmept from this obligation till the end of the calender year.

In which month has the insured exceeded the annual limit of contributions?

The employer may frequently experience issues with determining the month during which the insured has exceeded the annual limit of contributions. The problems arise when the employee has multiple  entitlements to social security or has changed the employer in the current year. When the insured is employed multiple workplaces, he is obligated to notify all the tax remmiter about the exceedance of the annual sum of contributions. In such case, he should submit a declaration on which the employer relies. In case, such a declation is not submitted, or submitted incorrectly, the employer is frequently obligated to prepare a correction.

ZUS RCA – information about the exceedance of the limit

The tax remmiter files the ZUS DRA declarations and personal monthly reports in a prescribed period for each hired employee from whom social security and health insurance contributions are collected. The information regarding the exceedance of the thirtyfold limit is illustrated in the personal ZUS RCA settlement reports. While preparing this document, in the space 02 of block IIIB you should mark information about exceeding the annual contribution sum for pension, by writing the numers 1 , 2 or 3, depending upon who is informing about the exceedance.

The unpaid period of contributions caused by exceeding the limit of the annual sum, is treated as insurance period.

Author: Joanna Czechowska