According to declarations made by representatives of the Ministry of Family, Labour and Social Policy, the imposition of contributions on all civil contracts and tying the value of contributions paid by the self-employed to their profits are being considered. One of the main objectives of such changes would be to generate funds to finance the lowering of the pension age. Simulations conducted by Employers of Poland show that this would only be beneficial for the budget in a short-term perspective. – Social insurance contributions are distinct from taxes. By paying them, we are entitled to receive specific services in return. Therefore, income from contributions cannot be treated as pure profit for the public services sector, as sooner or later this money will return to the insured – says Łukasz Kozłowski, expert of Employers of Poland.
Increasing the number of people obliged to pay social insurance contributions and the value of said contributions does not have an unambiguously positive impact on the condition of public finances. This is particularly evident in the defined contribution system which is currently in place in pensions. Every złoty paid on this ground is not only an income for the Social Insurance Fund (FUS), which is a part of the public finance sector, but also an obligation for the future towards the insured. Due to the worsening demographic situation, the state’s capacity to fulfill these obligations will systematically decrease.
The simulation presented above is simplified, as the details of the changes in question have not been disclosed. Actual sums may be different but the profit spread over time should be similar. The estimation was done on the assumption that the effective contribution level will grow to a level ensuring an additional 3.2 bln PLN in pension contributions. In subsequent years, thanks to higher real income of the insured (the results are presented in fixed prices), the budget would gain even more – as the subsidies for FUS could be lowered. However, when it comes to paying higher pensions thanks to higher contributions, net profits of the changes in question start to get smaller and smaller. As a result, in ca. 40 years the public finance deficit may even grow even bigger than it would be had no changes been introduced. This shows that imposing contributions on more and more types of contracts does not constitute a long-term solution of the problems of the increasing imbalance of the social insurance system.
Łukasz Kozłowski, economic expert of Employers of Poland