SOCIAL SECURITY OF ENTREPRENEURS FOR THE EXERCISE OF PERSONAL CARE OF THE CHILD
Entrepreneurs are able to benefit from old-age and disability insurance paid from the budget in connection with personal care of the child.
In accordance with point 17 of Article 4 of the Social Insurance System Act, the person with personal care of a child is a natural person who personally exercises care of his/her own child or his/her spouse, or an adopted child, during the period of up to 3 years, but not longer than the calendar year in which the child reaches the age of 6. In the case of a child, who due to their health condition confirmed by disability certificate or the degree of disability requires the personal care of that person for up to 6 years, but not for longer than the child has reached the age of 18.
Who is eligible
To old-age and disability insurance paid from the budget in connection with personal care of the child are entitled:
- entrepreneurs not employing employees who carried out an economic activity for a period of at least 6 months and stopped its conduct or have suspended business activities due to personal care of the child,
- persons who conducted other than specified in the provisions on freedom of economic activity, non-agricultural activity referred to in Article 8(6) of the Act, for a minimum period of 6 months and who ceased its conduct due to the personal care of the child.
Condition to conduct non agricultural activity for a period of at least 6 months shall be considered to be met if persons were subject to (compulsorily or voluntarily) old-age and disability insurance immediately before the day of the start of personal care of the child and have paid contributions, and the interruptions in a payment were due to benefits from sickness or accident insurance. This condition is also met if the person during the 6 months preceding childcare, was subject to social insurance as a person collecting maternity allowance acquired for conducting non agricultural activity.
Note! This condition will not be met in cases where the entrepreneur immediately prior to the date indicated in the application for suspension in connection with child care, benefited from the suspension pursuant to Article 14a(1) of the Act on freedom of economic activity. If you suspended activity in the normal mode (according to Article 14a(1) of the Act on freedom of economic activity) you cannot switch overnight to suspension due to the child care and make use of additional preferences. You can do this only if you resume activitiy and you will conduct it for at least 6 months.
Basis for the calculation of the rate of contribution
The basis of assessment for old age and disability insurance is an amount of 60 % of the forecasted average monthly remuneration adopted to determine the amount of annual reduction of the basis of assessment, issued pursuant to Article 19(10) of the Social Insurance System Act per calendar year. The contribution in the new amount shall apply from 1 January to 31 December of that year.
The possibilty to divide entitlement
The right to compulsory old-age and disability insurance can be used at all or in no more than 4 parts and shall be for a period of up to 3 years, but not longer than the end of the calendar year in which the child reaches the age of 6, or up to 6 years, in case of a child who due to their health condition as confirmed by disability certificate or the degree of such disability requires the personal care, no longer, however, than until the child has reached the age of 18.
Moreover, persons covered by mandatory old age and disabilty insurance for the exercise of personal care of the child, and not subject to compulsory health insurance from another source are subject to compulsory health insurance. The insurance obligation arises from the date on which old-age and disability insurance in connection with personal care of the child and shall expire on the day of termination of this care. The basis of assessment is the amount corresponding to the amount of the special care allowance payable pursuant to the rules on family benefits.
Persons who exercise personal care of the child who due to this care are subject only to old age insurance, are not subject to health insurance.
Contribution payer for persons who exercise the personal care of the child is the Social Security Institution.
Suspension of activity — application to the CEIDG
If you suspend activity due to taking care of a child, remember when suspending activity a statement should be marked (box 14.3 in application CEIDG-1) that activity shall be suspended in order to exercise personal child care. In case of notification of such a suspension, the date should be indicated by when the activity will be suspended.
Note! After indicated date, the entrepreneur will be subject to removal ex officio (even if the suspension period is shorter than 24 months!), that is why after the suspension of activity it is worth submitting an application for its renewal (rules allow to indicate the future date).
An entrepreneur in order to obtain old age and disability contribution paid by the state budget in the course of personal care of the child must submit a statement of intent of being subject to old age and disability insurance which contains:
- first name and surname of the person exercising the personal care of a child, PESEL number or the series and the number of the identity card or passport,
- place of residence,
- the day of commencement of personal care of the child,
- the child's name and surname and date of birth,
- information on the last period of insurance,
- information on the use or disregard of the entitlements arising from personal care of the child by the other parent.
Together with the original statement shall also be provided originals:
- a short copy of the child's birth certificate,
- decision on disability or the degree of such disability, if the child has such a decision.
The entrepreneur must inform the Social Security Institution of any changes to the data referred to in the statement within 7 days of the change.
You want to submit a statement to the Social Security Institution. We can help you, read the additional information at the ZUS website.
If you want to find out more about the insurance in the case of personal care of the child, please read the ZUS guide.
Insured in KRUS
The provisions of the Act on social insurance for farmers also provide for the possibility of financing contributions for old age and disabilty insurance from the budget of the State during his/her own personal care of own child, his/her spouse's, or adopted child, inter alia, for the following persons:
- farmer and household member subject to old age and disabilty insurance by law or on request,
- the farmer and household member not subject to social insurance for farmers,
- a person who is a member of the farmer's family or household member, who does not meet the conditions for the social insurance for farmers.
In the case of insured by KRUS, lack of requirement of conducting non-agricultural economic activity for at least 6 months prior to the date of submission of the application for financing old age and disability insurance contributions.
You want to submit an application to KRUS. We can help, read the additional information.
Eligibility for financing old age and disability insurance contributions is granted for up to 3 years, but not for longer than until the child has reached the age of 5. In the case of taking care of a child with disabilities the insurance is granted for up to 6 years old, but not longer than reaching the age of 18.
Contribution to old age and disability insurance for a person exercising the personal care of a child is financed from the date of the submission of the application.
The conditions for financing contributions within KRUS insurance
The right to finance the pension insurance contributions from the budget of the State is subject to formal requirements. The conditions are:
- submission, in the case of persons subject to old-age and disabilty insurance in the KRUS, application for financing from the State budget old age and disabilty insurance contributions in connection with personal care of the child and, in the case of persons not yet subject to old-age and disabilty insurance in KRUS, application for pension and disability insurance and the financing the insurance contributions from the State budget, in connection with personal care of the child. Applications can be downloaded on KRUS website.
- submission of a short copy of the birth certificate of a child and if the child is disabled, the disability certificate or the degree of such disability;
- the person with personal care of the child is not subject to another social insurance and has no established right to benefit from social insurance, including old-age or disability pension;
- the farmer or household member conducting also non-agricultural economic activity or cooperating on its conduct, termination of the conduct of activity or suspension of its performance or cooperation on its conduct during the period of personal care of the child. This means that on the day on which the financing from the state budget started, the activity cannot be carried out;
- the other parent is not entitled to the financing of insurance contributions to take care of the child with the KRUS or right to funding contributions to ZUS on the basis of the social insurance system act (including maternity allowance or being on parental leave).
The contribution from the state budget is 10 % of the basic pension. Persons who are not subject to social insurance for farmers (i.e. do not meet the conditions for that insurance), during personal care of the child are entitled to choose the financing of old age and disability insurance contributions in ZUS or KRUS.