On April 4, 2025, the Sejm passed a bill to reduce health insurance contributions for approximately 2.5 million entrepreneurs in Poland, introducing a two-tier system that adjusts fees based on income levels. While the reform is expected to provide financial relief for small business owners, critics express concerns about its potential negative impact on public health funding and the sustainability of the National Health Fund.
On 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 benefit around 2.5 million individuals running sole proprietorships by introducing a new two-tier system for calculating health insurance contributions.
Under the new law, the first component is a lump sum that will be set at 9 percent of 75 percent of the minimum wage. The second part varies based on income: those taxed under a tax scale or linear tax will pay a rate of 4.9 percent on income exceeding 1.5 times the average monthly salary, while entrepreneurs using a lump sum taxation method will see a 3.5 percent rate applied to revenues above three times the average monthly salary.
Minister of Finance Andrzej Domański stated that the estimated cost of this reform, approximately 4.6 billion zlotys, will be covered by the state budget, ensuring that the National Health Fund (NFZ) will not experience any financial strain. Domański emphasized that the proposal is designed to assist predominantly small and medium-sized entrepreneurs.
Marcelina Zawisza from the Razem party warned that the law could negatively affect public health funding, claiming it would “take money away from patients.” Joanna Wicha echoed these concerns, questioning the fairness of the proposed changes and expressing worry about the impact on those who cannot afford private healthcare. In response to these criticisms, Domański stressed that the reform aims to remedy the economic impacts of the previous Polish Deal, which had been seen as detrimental to entrepreneurs. He reassured that the new regulations will not change the health insurance contributions for full-time employees, which will remain set at 9 percent.
Scheduled to take effect in early 2026, the government hopes these changes will relieve the small business sector. Piotr Juszczyk from inFakt noted that under the new tax scale, entrepreneurs earning up to 12,823.77 zlotys would benefit by 839.18 zlotys monthly, while those making over 20,000 zlotys would receive the same financial relief. Despite this, concerns linger regarding the long-term viability of the NFZ, particularly as the government eliminates the possibility of deducting health insurance contributions from income tax. The bill will proceed to the Senate for further discussion, indicating ongoing debates about healthcare funding and the government’s role in supporting entrepreneurs in Poland.
