Conducting activity on retirement

Currently, the retirement age in Poland is 60 for women and 65 for men. This does not mean, however, that a person who reaches this age and starts to receive pension benefits from the Social Insurance Institution must stop running business activity or that he/she can no longer start it. If you are retired, you can conduct business activity without losing your pension entitlement.

How to register your activity

In order to set up a business activity, you must submit an application for registration in the Central Register and Information on Business Activity (CEIDG) - just as other entrepreneurs do. See more about setting up a business.

After starting their own business activity, pensioners must register as contributions payers (ZUS ZFA form - application of the contributions payer), and register themselves to insurance (ZUS ZUA form - when they choose voluntary pension insurance, or ZUS ZZA form when they choose only compulsory health insurance).

Pensioners settle their business income in the PIT-36 annual statement together with pension income. Only those who have opted for a flat tax rate settle these revenues separately, using PIT-36L.

Compulsory and voluntary contributions to ZUS

After reaching retirement age, pensioners are exempt from paying most social security charges. The only contribution they have to pay is health insurance. The basis for calculating this contribution is the amount declared - but it cannot be lower than 75% of the average salary in the economy.

Note: there is an exception to the obligation to pay health insurance!

If the pension (gross) does not exceed monthly the minimum wage amount and:

  • additional income from activity does not exceed 50% of the lowest pension monthly, or
  • income tax is paid in the form of a tax card,

- then it is possible to be exempted from the obligation to pay health insurance contributions for the conducted business activity.

Limits for earning on retirement

Entrepreneurs who have reached the general retirement age can earn any income in any amount without limiting the amount of pension benefits. A similar rule applies to pensioners who earn income from gainful employment not covered by compulsory social security - e. g.  contract for a specific task, agency agreement.

This does not apply to persons who take early retirement. They are obliged to reduce or suspend their pension if their income exceeds a certain amount. If income exceeds 70 per cent of the national average monthly salary, pension benefits shall be reduced. If it exceeds 130 per cent of the national average monthly salary, pension is not applicable.

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