Taxes in Europe Database v2
The Law of 20 December 1990 on social insurance of farmers (consolidated text: Journal of Law of 2013 item 1403 with further amendments).
The Agricultural Social Insurance Institution (KRUS) administrates following Funds:
The system of social insurance of farmers is financed by contributions payable by farmers and from the state budget allocation.
Contribution Fund is created from contributions into accident, health and maternity insurance and from other sources defined in the Fund Statutes.
The means from this Fund are designed for:
Pension Fund is created from:
Means of this fund are designed for financing:
According to the assumptions accepted together with the Law, the farmers cover about 10% of expenditures on benefits and the rest is covered by the national budget.
Fund of Prevention and Rehabilitation is created from deductions from Contribution Fund and also from the state allocations.
This fund is designed to conduct the KRUS activities on prevention of work injuries connected with agricultural work and agricultural professional diseases and to assist the insured and those who have a right to insurance benefits who are persistently unable to work on the farm, or threatened with such incapacity, with different forms of rehabilitation or with a possibility of qualifying for a new job.
Administrative Fund is designed for financing the costs of insurance service (except the costs covered by the means of Contribution Fund or Fund of Prevention and Rehabilitation).
Administrative Fund is created from:
Territory of Poland.
The Law on the farmers' social insurance provides two forms of covering by insurance: obligatorily or on demand (voluntarily). From the fact of being covered by the farmers' social insurance emerges the obligation to pay quarterly contribution, regardless the form of this coverage (obligatory, voluntary). Such obligation should be fulfilled by the owner of the farm who conducts the agricultural activity on his own account.
The following persons are covered obligatorily by the farmers' social insurance:
The exception to this rule are those who conduct agricultural activity or work on the farm and at the same time conduct non-agricultural economic activity or cooperate in conducting such activity. According to the Law of 1 January 1997, these persons may choose the system by which they want to be covered, according to the Law.
There are two basic kinds of social insurance for farmers:
Cash benefits from the pension insurance include:
Cash benefits from the accident, health and maternity insurance include:
Family benefits include:
Income is not base of assessment of farmers' contribution.
Old-age and disability pension insurance
The contribution rate for old-age and disability pension insurance - is 10% of basic farmers pension (up to 30.09.2009 on the insurance premium was paid in quarterly time, corresponding to the amount of 30% of basic farmers pension from the last month of the previous quarter). The amount of basic pension is announced by the President of ZUS in the Official Journal of the Polish Republic, "Polish Monitor."
A farmer, whose farm covers an area of agricultural land exceeding 50 ha, it pays for pension insurance is also an additional monthly premium of:
Accident, health and maternity insurance:
The person covered by this system is obliged to pay contribution established by the Council of Farmers, according to the Law on farmers' social insurance, for a period of a quarter or several following quarters. The amount of this contribution secures the liquid financing of debts from this insurance system.
Quarterly, last day of the first month of the quarter.
The Agricultural Social Insurance Institution (KRUS).