According to the Central Statistical Office GUS, there were about 1.3 million self-employed people in Poland at the end of 2018, while the ‘Freelancers in Poland 2019’ report by useme.eu stated there were 0.5 million freelancers in Poland. But, this number is bound to rise as more and more people turn to freelancing to supplement their incomes or grow their customer base. But as Poles, we love to live by rules, so whether you are a seasoned freelance professional or a newbie, here are the fundamental regulations that you need to know.
Emergency coronavirus regulations
First, let’s have a look at the new regulations introduced by the government as the response to the coronavirus pandemic, as these offer urgent relief for freelancers in trouble.
As the coronavirus has threatened the very existence of many Polish entrepreneurs, the government decided to introduce the so-called anti-crisis shield that includes a number of emergency relief measures that are meant to help micro-companies, entrepreneurs and freelancers. The self-government of the Pomeranian Voivodeship and authorities of the cities of Gdańsk, Gdynia and Sopot have also put together a crisis plan to support Pomeranian businesses.
So who is considered a freelancer in Poland? It’s a person working based on a civil law contract (such as agency contract, commission contract, other contracts that aim to provide services or deliver a specific work in a specific timeframe). There are two main types of contracts – and knowing the difference between them will make a difference to your pocket and security.
Types of freelance contracts in Poland
Umowa zlecenie: If you have ‘umowa zlecenie’, or a commission contract, ZUS, the Polish Social Insurance Institution, will cover your retirement, disability and health insurance. Sick leave insurance is voluntary.
Umowa o dzieło: If you have ‘umowa o dzieło’, or a contract for a specific task, ZUS will NOT cover your social security and health insurance.
So, having made that clear, let’s have a look at the new temporary regulations for these two types of freelancing contracts.
Idle time pay due to Coronavirus
If you are a freelancer and your contract has been cancelled or limited in the aftermath of COVID-19, you can receive compensation for the loss of revenue. In order to do so, your client or customer must submit a request to ZUS.
There are limits to how much you will get, of course. You can get up to PLN 2080, however, if the sum of your incomes in the month preceding the month in which you applied for the allowance is not more than PLN 1299.99 (less than 50% of the minimum wage in Poland in 2020), your idle time pay will be the sum of these contracts.
You are eligible for this support irrespective of your nationality – provided that you work legally and have a temporary or permanent residence in Poland. Note, however, that only people who have no other social security insurance can receive this support and the funds are limited.
Find out more about the Coronavirus idle pay allowance here:
ZUS – civil law contracts
Voluntary health insurance
What about your health insurance as a freelancer? Since 2016, all employers in Poland must pay insurance premiums on at least the minimum wage, so that their employees, even those on freelance contracts, are insured. But as we’ve mentioned above, ‘umowa o dzieło’ is an exemption: it does not give you any social security and health insurance – contrary to ‘umowa zlecenie’.
But even if you are not covered by the obligatory health care insurance, you still have an option to insure yourself voluntarily. It will eat away at your income (PLN 483,12 in the first quarter of 2020).
NFZ offers voluntary health insurance contributions that you can learn about here: https://www.nfz.gov.pl/dla-pacjenta/zalatw-sprawe-krok-po-kroku/jak-ubezpieczyc-sie-dobrowolnie/
Note that if you interrupt your health insurance payments, you will have to pay due amounts later. In other words, jumping in and out of the NFZ system is costly.
Childcare benefits for freelancers
What about freelancing parents? Like other parents in Poland, they can also receive a care benefit. It is an allowance paid to parents to take care of children who are not in school. But, again, only parents who are paying their health insurance contributions have the right to this benefit.
The latest update from the Minister of Development in response to the lockdown situation: the government is not currently considering expansion of this benefit to uninsured parents. But as the situation develops, things might change. We will keep an eye on that for you.
Read also our freelancer’s guide to fundamental online resources that will help you manage your career.
We will keep updating this article as we have more information, so please don’t hesitate to ask your questions.
