„Deeply unjust” decision of the president

4a0ed6fa9856bcb77f029fd2b165b369, Biznes Fakty

Paprocka’s comments on the president’s stance regarding health insurance premiums TVN24

Agnieszka Majewska, the spokesperson for small and medium-sized enterprises, expressed that President Andrzej Duda’s veto against the legislation aimed at reducing health insurance contributions for entrepreneurs is profoundly unjust, announcing a continued struggle to amend these regulations.

Majewska evaluated that the regulations in effect for nearly three years, established under the Polish Deal, imposed excessively high health insurance contributions on those engaged in business activities, which for many proved to be an unbearable strain, ultimately resulting in the closure of numerous small firms.

She referenced statistics indicating that from 2022 to 2024, an unprecedented number of entrepreneurs have opted out of their businesses, which, as she highlighted, translates into the loss of hundreds of thousands of jobs and adversely affects Poland’s economic growth.

Veto deemed „economically irrational”

According to Majewska, the veto by President Andrzej Duda regarding the legislation that would lessen health insurance contributions for entrepreneurs is a decision that is „deeply unfair and economically irrational.”

The spokesperson pointed out that the repercussions of the Polish Deal have been particularly harsh for those in the SME sector. – They account for nearly half of Poland’s GDP. Small and medium enterprises are vital to the flexibility and competitiveness of our economy. It is these entities that endure the most significant burden from the policies introduced in 2022 – Majewska stressed.

– Two and a half million entrepreneurs were eagerly anticipating a change to these detrimental and unjust regulations. For them and their families, President Andrzej Duda’s decision signifies the obliteration of hope for improved business conditions and poses a threat to the viability of their enterprises – she added.

The spokesperson declared her intention to „steadfastly pursue” the matter, urging the government and parliament to revisit it after the presidential elections.

– I recognize that both the amount and methods of financing healthcare necessitate careful consideration. I am prepared to engage in developing the final solutions. However, I cannot endorse the existing regulations that discriminate against one social group – she concluded.

The President’s Concerns

On Tuesday, Małgorzata Paprocka, the head of the Chancellery of the President, announced that President Andrzej Duda had vetoed the legislation aimed at reducing health insurance contributions for entrepreneurs. Paprocka justified the president’s choice by stating that the act raises significant concerns regarding social justice, contradicts constitutional principles, and encourages a shift from employment contracts to self-employment. She also noted that the decision followed consultations with the Social Dialogue Council regarding the act.

Furthermore, the head of the Chancellery highlighted the stark inequality between employees and entrepreneurs, which worsens as income levels rise.

She emphasized that at an income level of PLN 8,000 for both employees and entrepreneurs, a scenario would emerge where an employee under an employment contract would be paying health insurance contributions that are double those of entrepreneurs.

Reduction of health insurance premium

The legislation aimed at decreasing the health insurance contribution for entrepreneurs was passed by the Sejm on April 4 with votes from KO, Polska 2050-TD, and PSL-TD. Members of the ruling coalition argued that they intended to alleviate the burdens on business owners, whose contributions were raised by Mateusz Morawiecki’s government as part of the Polish Deal. The measure also received support from Health Minister Izabela Leszczyna (Civic Coalition), who stated previously that no health minister could agree to a reduction in health insurance contributions. After the vote, she mentioned that had she opposed the act, the head of government would have known she was „not part of the team.” Opposition from PiS, Lewica, and Razem MPs was noted, with the Confederation abstaining from the vote.

The vetoed act proposed by President Andrzej Duda sought to reduce the health insurance contribution for entrepreneurs starting in 2026. This change would have affected 2.5 million entrepreneurs and would have resulted in a budget shortfall for the state of PLN 4.6 billion (the anticipated decrease in revenue from health insurance contributions).

Finance Minister Andrzej Domański assured that this deficit would be compensated from the state budget.

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