Kasa Rolniczego
Ubezpieczenia Społecznego

What should a farmer, who takes up work within the territory of the European Union, know about social insurance coverage?

To secure the right to social protection, without losing the rights acquired in the earlier period, the farmers exercising their rights to move and reside freely within the territory of the European Union should have at least basic knowledge of the matter. It is worth mentioning that in the light of EU membership, Poland – as all other EU Member States – still continues to apply the national law in the field of social insurance. Nonetheless, to avoid negative effects of such right with respect to persons moving freely within the European Union, Poland is also obliged to observe the principles of coordination of the national social security systems, stipulated in the Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ EU L 166, 30.4.2004), No 987/2009 of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems (OJ EU L 284, 30.10.2009, p. 1).

The above-mentioned resolutions replaced two existing regulations, i.e. Council Regulation (EEC) No 1408/71 of 14 June 1971 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community and Council Regulation (EEC) No 574/72 of 21 March 1972 on the application of social security schemes to employed persons, to self-employed persons, to self-employed persons and to their families moving within the Community.

EU measures

New EU measures do not introduce any fundamental changes in the coordination of social security systems of EU Member States. They are based on the same principles and coordination techniques, on which the provisions of Regulation No 1408/71 were based, namely:

Equality of treatment

The persons to whom Regulation No 883/2004 applies shall enjoy the same benefits and be subject to the same obligations under the legislation of any Member State as the nationals thereof. The EU measures preclude any discrimination against the aforesaid persons both in terms of access to social insurance in other Member States and use of benefits as provided for in the legislation of such Member States. The EU measures also equate all events and circumstances that occurred within the territory of other Member States as well as benefits and income obtained from other Member States.

Protection of rights acquired, which means that the cash benefits payable under the legislation of one or more Member States or under this regulation shall not be subject to any reduction, amendment, suspension, withdrawal or confiscation on account of the fact that the beneficiary or the members of their family reside in a Member State other than that in which the institution responsible for providing benefits is situated. By implementing the above-mentioned principle, the Farmer's Social Security Fund transfers the pecuniary benefits under the social insurance for farmers to the European Union, European Economic Area or Switzerland – upon the request of the beneficiary.

Aggregation of periods (employment, self-employment, residence), which is stipulated in Article 6 of Regulation No 883/2004. The principle means that the institution of the Member State, whose legislation makes:

• the acquisition, retention, duration or recovery of the right to benefits,
• the coverage by legislation, or
• the access to or the exemption from compulsory, optional continued or voluntary insurance, conditional upon the completion of periods of insurance, employment, self-employment or residence shall, to the extent necessary, take into account periods of insurance, employment, self-employment or residence completed under the legislation of any other Member State as though they were periods completed under the legislation which it applies, provided that they do not overlap with 'own' periods.

To which group of persons does the coordination of social security apply?

The provisions of Regulations No 883/2004 and No 987/2009 apply to all nationals of a Member State, stateless persons and refugees resident in the territory of a Member State who are or have been subject to the social security legislation of one or more Member States, as well as to the members of their families and to their survivors.

Such provisions shall also apply to the survivors of persons who have been subject to the legislation of one or more Member States, irrespective of the nationality of such persons, where their survivors are nationals of a Member State or stateless persons or refugees residing in one of the Member States.

Where does the insurance apply?

General rules

Persons to whom this Regulation No 883/2004 applies shall be subject to the legislation of a single Member State only. Such legislation shall be determined in accordance with Title I. For the purposes of applying the provisions of Title II of Regulation No 883/2004. Pursuant to Article 11(3a) of Regulation No 883/2004, a person pursuing an activity as an employed or self-employed person in a Member State shall be subject to the legislation of that Member State. It is the 'place of work' principle (lex loci laboris). In compliance with this provision, the legislation of the Member State in which the person is employed or self-employed shall be applicable. Therefore, in such case, the place of residence of the employee, the registered office of their employer or the place of registration of the employee’s business are irrelevant.

In the case of persons employed or self-employed on board a vessel at sea flying the flag of a Member State, the relevant legislation shall be the legislation of such Member State. However, a person employed on board a vessel flying the flag of a Member State and remunerated for such activity by an undertaking or a person whose registered office or place of business is in another Member State shall be subject to the legislation of the latter Member State if they reside in that State (Article 11(4) of Regulation No 883/2004).

A person who normally pursues an activity as a self-employed person in a Member State who goes to pursue a similar activity in another Member State

Regulation No 883/2004 also includes a special principle concerning a person who normally pursues an activity as a self-employed person in a Member State who goes to pursue a similar activity in another Member State. Pursuant to Article 12(2) of Regulation No 883/2004, a person who normally pursues an activity as a self-employed person in a Member State who goes to pursue a similar activity in another Member State shall continue to be subject to the legislation of the first Member State, provided that the anticipated duration of such activity does not exceed twenty-four months.

Article 14(3) of Regulation No 987/2009 specifies that the words ‘who normally pursues an activity as a self-employed person’ shall refer to a person who habitually carries out substantial activities in the territory of the Member State in which he is established. In particular, that person must have already pursued their activity for some time before the date when he wishes to take advantage of the provisions of that Article and, during any period of temporary activity in another Member State, must continue to fulfil, in the Member State where they are established, the requirements for the pursuit of their activity in order to be able to pursue it on his return.

Article 14(4) of Regulation No 987/2009 clarifies the term ‘similar activity’ mentioned in Article 12(2) of Regulation No 883/2004. In accordance with the above provision, the criterion for determining whether the activity that a self-employed person goes to pursue in another Member State is ‘similar’ to the self-employed activity normally pursued shall be that of the actual nature of the activity, rather than of the designation of employed or self-employed activity that may be given to this activity by the other Member State.

More information can be found at http://www.zus.pl

Persons who are self-employed in two or more Member States

In compliance with Article 13(2), a person who normally pursues an activity as a self-employed person in two or more Member States shall be subject to:

• the legislation of the Member State of residence if they pursue a substantial part of their activity in that Member State,
• the legislation of the Member State in which the centre of interest of their activities is situated, if they do not reside in one of the Member States in which they pursue a substantial part of their activity.

For the purposes of the application of Article 13(2) of Regulation No 883/2004, a person who ‘normally pursues an activity as a self-employed person in two or more Member States’ shall refer, in particular, to a person who simultaneously or in alternation pursues one or more separate self-employed activities, irrespective of the nature of those activities, in two or more Member States (Article 14(6) of Regulation No 987/2009).

A substantial part of employed or self-employed activity pursued in a Member State shall mean a quantitatively substantial part of all the activities of the employed or self-employed person pursued there, without this necessarily being the major part of those activities. To determine whether a substantial part of the activities is pursued in a Member State, the following indicative criteria shall be taken into account:

• turnover,
• working time,
• number of services rendered,
• income.

In the framework of an overall assessment, a share of less than 25% in respect of the criteria mentioned above shall be an indicator that a substantial part of the activities is not being pursued in the relevant Member State.

What should do a farmer going to a EU Member State for work purposes?

A person subject to farmers’ social insurance, who goes to another Member State and commences non-agricultural business activity or undertakes employment at a foreign employer pursuant to the agreement concluded in compliance with the law of that Member State shall regularly inform the units of the Farmer's Social Security Fund having jurisdiction over the location of the agricultural holding, within 14 days from the date of starting work (Article 37(1) of the farmers’ social insurance act).

• The Farmer's Social Security Fund may acknowledge form A1 with respect to persons under the agricultural insurance scheme, in the following cases:
• conducting agricultural activity in Poland and another Member State, i.e. two agricultural holdings – Article 13(2a) of Regulation No 883/2004,
• conducting agricultural and non-agricultural activity in Poland and non-agricultural activity in another Member State – Article 13(2a) of Regulation No 883/2004,
• conducting agricultural in Poland and non-agricultural activity in another Member State – Article 13(2a) of Regulation No 883/2004,
• temporary trip of a farmer to another Member State to perform there specialist activities related to the business conducted in Poland (agricultural activity) – Article 12(2) of Regulation No 883/2004,
• Application of the exceptions to Articles 11-15, pursuant to Article 16 of Regulation No 883/2004 with respect to persons who remain under the agricultural insurance scheme (in the Farmer's Social Security Fund).

The Farmer's Social Security Fund acknowledges Polish legislation in the above-mentioned cases upon fulfilment of the conditions of remaining in the agricultural system. The information in that respect is available on the website of the Social Insurance Institution http://www.zus.pl. 

When does the Social Insurance Institution confirm applicable legislation?

The Social Insurance Institution confirms to all persons who pursue activities as employed persons and all persons who pursue non-agricultural activities, other than farmers, that it is subject to Polish legislation. With respect to persons who conduct agricultural activities, the Social Insurance Institution acknowledges form A1 in the following cases:

1. a farmer pursues an activity similar to the activity conducted in Poland, but as an employed person – according to Article 12(2) of Regulation No 883/2004,
2. a farmer who simultaneously pursues non-agricultural activities does not meet the conditions of remaining in the agricultural system as provided for in the Polish national law – according to Article 13(2) of Regulation No 883/2004.