Supreme Court Makes Key Ruling on Social Insurance for Entrepreneurs: Unexpected conclusions

A recent Supreme Court ruling (III UZP 3/23) has ignited debate, even before the official justification is released.

The court ruled that declared income for social security contributions should match actual income. If there is a mismatch, the Social Insurance Institution (ZUS) can lower the declared base, reducing the benefits paid. In practice, ZUS only scrutinizes declared bases when entrepreneurs apply for benefits. So, if entrepreneurs stay off the social security system, ZUS does not pursue inflated bases. However, when viewed through a broader lens, the ruling could have unexpected implications. It might mean that entrepreneurs who paid inflated contributions but did not claim benefits essentially overpaid. In that case, ZUS might owe them a refund.

Attorneys Łukasz Chruściel and Bartosz Wszeborowski explore the potential consequences of the Supreme Court ruling in Dziennik Gazeta Prawna.

The article in Polish is avialible: here.