Money from the tax reduction will go into Poles' pockets

For old-age pensioners who receive up to about PLN 12,800 gross per month, the Polish Deal will be beneficial or neutral throughout the year. "Up to PLN 4,920, every pensioner gains from the tax reform. The reform is neutral for persons receiving between PLN 4921 and PLN 12,800," noted government spokesperson Piotr Müller. 
The tax reform will benefit 94% of old-age pensioners and 98% of disability pensioners who receive benefits under the Social Insurance Institution (ZUS) scheme. As a result, people whose main source of income is old-age or disability pension will gain in total about PLN 10 billion on the Polish Deal. "For six years, as part of social solidarity, we have been creating conditions so that people who retire have decent benefits," stressed Minister of Family and Social Policy Marlena Maląg.

Examples:
•    (gross) pension of PLN 1,800 – the pensioner will gain PLN 1,473 annually in net payment,
•    (gross) pension of PLN 2,500 – the pensioner will gain PLN 2,250 annually in net payment,
•    (gross) pension of PLN 3,000 – the pensioner will gain PLN 1,785 annually in net payment.

Old-age and disability pensioners who received lower benefits in January will be able to count on reimbursement next month – so they will not lose money. "Each person who was paid a lower benefit, between PLN 4,921 and PLN 12,800, will receive an appropriate reimbursement in February. After that, they will continue to receive benefits at the same level. From March, it will be subject to indexation," said Piotr Müller.

PIT-0 for working seniors

PIT-0 is a solution to encourage seniors to remain in the labour market. PIT-0 for seniors works in the same way as PIT-0 for young people, i.e. it will cover, among others, annual income from work up to the amount of PLN 85,528.

Notably, seniors who pay tax under general rules are also entitled to the tax-free amount of PLN 30,000. What does it mean? Working seniors, who do not receive an old-age pension, will pay tax only after their earnings exceed PLN 115,528 (PLN 30,000 free amount + PLN 85,528 relief).

We support seniors

The new solutions under the Polish Deal are not the only benefits for seniors in Poland.

•    Pensioners will gain higher benefits after the indexation planned for March 2022.
•    We have restored the retirement age: 60 for women and 65 for men.
•    The situation of old-age pensioners who receive the lowest benefits has improved. In 2021, their minimum pension was PLN 1,250, while in 2015, it was PLN 880.
•    We support seniors with the 13th pension. In 2022, this benefit will be paid for the fourth time.

"In 2021, the 13th and 14th pensions and indexation resulted in an additional PLN 36 billion. In 2015, it was over PLN 3 billion. Our measures are a kind of 'crisis shield' to make life better for seniors," said Minister Maląg.

Apart from financial support, we also implement other programmes. "They involve creating senior homes or clubs or the Active+ programme, among others. This year, PLN 100 million will be allocated to create new senior homes and clubs to implement various projects with non-governmental organisations for the benefit of senior citizens," summed up Minister of Family and Social Policy. "Currently, we have over 1,000 senior homes and clubs in Poland. The government is also working on new projects – intergenerational centres for seniors and children," she added.

Where to find information on the Polish Deal?

Information on tax reform under the Polish Deal is available on our website: wiecejwportfelach.gov.pl.
Should you have any additional questions, we encourage you to contact our hotline: 22 765 64 64.