Priceless and necessary investment in human capital

Statistics show that the Family 500+ programme has considerably improved the financial standing of Polish families. The severe poverty indicator has decreased radically down to 4.2 percent. The disposable income of the families has also significantly increased. The income of large families in 2019 have been larger by as much as 57 percent in comparison to 2015. Regular, systemic assistance is granted to 6 million 600 thousand children. Until today, the government has allocated PLN 134 billion for that purpose, and this year’s budget includes PLN 41 billion for the implementation of the programme.

- The Family 500+ programme has changed the perception of Polish families. It is also the first governmental programme since the political transformation to heavily emphasise the need to care for the future of families in Poland as invaluable capital, which cannot be manufactured in any production plant. It allows us to invest in Poland which we leave as a legacy for future generations – Minister Marlena Maląg stressed.

Minister Maląg reminded, that another aspect of the programme invoices its influence on stimulating consumption – also significant in the context of GDP. Private consumption, despite the ongoing pandemic, does not significantly differed from the overall GDP decrease which amounted to -2.8 percent. That, in turn, is a lower decrease in comparison to the European Union, where the GDP has decreased by 7.4 percent last year, while in strong economies such as Germany – by 5 percent or France – by as much as 8 percent. As Minister Maląg stresses - the lower decrease of consumption in Poland - in relation to the European Union countries - is determined by maintaining the expenditures on social programmes at a certain level.

This year will also bring an important change related to determining the benefit period and the time limits for submitting applications for parental benefits. Since 2021 the right to the “500+” benefit shall be determined for the period of 1st June until 31st May of the next calendar year. An application is required, which may be filed electronically beginning on 1 February through the Empatia portal, electronic banking or via PUE ZUS portal.

– As of today, at 12.00 pm, we have received 141.4 thousand applications – Minister Maląg said, encouraging parents to file the applications electronically. 60 percent of eligible persons have used this method.

Investment in quick return to economic normality

Shield 7.0 involving the government’s support for entrepreneurs of a total value of approximately PLN 5.2 billion launches today. Out of that, contribution exempts amount to approx. PLN 1.99 billion, economic downtime benefit amounts to approx. PLN 963, while remuneration subsidies amount to approx. PLN 777. Micro-subsidies for micro and small enterprises with a total value of PLN 1.44 billion constitute an important item. It is expected that the assistance under Shield 7.0 will reach nearly 300 thousand business owners.

Due to Shield 7.0, support in the form of economic downtime benefit will be granted to entrepreneurs active in 47 industries, where the assistance was extended by 5 which incur the costs of sanitary regime resulting in attendance decrease, including for instance, hotels and lodging places, camping fields, tourism agencies and those involved in organising tourism. The contributions exemption is available to business owners operating in 49 industries, including the commercial air transport support services.

Minister Maląg indicates that the overarching aim of the government’s actions since the very beginning of the pandemic is to protect the health and live of Polish citizens, to protect jobs and to ensure financial stability to millions of Polish families. The Polish government has allocated approximately PLN 177 billion for that purpose so far. The first and the subsequent anti-crisis shields launched immediately covered, among others, job subsidies, non-repayable loans for micro-entrepreneurs as well as exemptions from contributions and idle time benefit. In comparison, the governmental anti-crisis packages provided by the Polish government between 2008-2009 amounted to approx. PLN 9 billion. Over 6.5 million jobs were saved.

The President of the Social Insurance Institution, Gertruda Uścińska reminded, that as per the end of the previous year, the Institution has registered 2.5 million payers. – It is 55 thousand more than in February of the preceding year. She also added that 240 thousand entrepreneurs used other – other than the shield – support mechanisms.