Earning extra money in retirement – what you need to know
In Poland, the debate on low pensions has been continued for years. According to the research conducted by the National Debt Register – pensioners are one of the most indebted groups - their total liabilities amount to almost 3 billion PLN. It is not surprising that seniors are willing to earn extra money to meet their financial needs. The question is - is it legal?
Seniors after having reached retirement age
A group of pensioners who have already reached the retirement age (women – 60 years old; men – 65 years old) can earn extra money without restrictions. They do not have to worry about exceeding the limits or be afraid of the reduction of their benefits.
People who have not reached retirement age
There is also a group of people who receive a pension when they are not yet at retirement age. In this case, performing additional professional activities is also possible but one should take into account the limits established by ZUS.
In accordance with the Act that was established on 17 December 1998 and which concerned retirement and disability benefits from the Social Insurance Fund, the amount of the retirement pension or disability benefits may be reduced or the right to such benefits may be suspended if the recipient receives income that affects the retirement and disability pension rights above a certain amount.
Revenue Limits
The limit is calculated on the basis of the average monthly salary that is published by the president of the Central Statistical Office. This data is provided every three months. ZUS may reduce the benefits if the additional income exceeds the amount of 70% of an average monthly salary. In case the payment exceeds the amount of 130% the payment of the retirement from ZUS may be temporarily suspended.
From December 1, 2021 to February 28, 2022, the revenue amount corresponding to:
- 70% of the average monthly remuneration announced in the third quarter of 2021 amounts to PLN 3,960.20 - this means that above this limit, it will affect retirement/disability pensions
- 130% of the average monthly remuneration announced for the third quarter of 2021 is PLN 7354.50, which means that income above this amount will mean the suspension of the retirement/disability pension
Who has the right to earn money without restrictions?
Income limits, as already mentioned in an earlier part of the article, do not concern people who receive retirement benefits and have already reached the retirement age (except for people with an increased retirement pension calculated by ZUS). In addition to this, the limits do not apply to people who are entitled to a partial pension, entitled to a war invalidity pension for their stay in a camp and in places of isolation or a survivor's pension after these invalids. If a person receives a survivor's pension, which is more favorable in terms of amount than the established retirement pension due to the end of the retirement age, they may also earn money without restrictions.
Sources:
https://www.zus.pl/baza-wiedzy/skladki-wskazniki-odsetki/wskazniki/emerytury-i-renty
https://www.prawo.pl/kadry/ile-mozna-dorobic-na-emeryturze-lub-rencie-w-2021-roku,289320.html
https://firma.rp.pl/kadry-place/art17059751-ile-mozna-dorobic-na-emeryturze-zus-podal-nowe-dane
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