THE COSTS OF A SOLE TRADER IN 2023

Next year – that is, in 2023 – we can expect two increases in the minimum wage. This is very good news for employees. However, not for employers. After all, every business owner pays social security contributions based on the average monthly wage.

To sum up, employees will see their gross monthly salary increase by 600 zlotys. A new business owner, on the other hand, will be forced to pay as much as 609 zlotys more in social security contributions to ZUS over the course of the whole of 2023.

An even greater increase in the minimum wage in 2023

From 1 January 2023, the minimum wage will rise to 3,490 zł, and from 1 July it will amount to 3,600 zł per month.

For young entrepreneurs, a higher minimum wage means higher social security contributions. The basis for calculating preferential ZUS contributions is: pension, disability, sickness and accident insurance. This cannot be less than 30 per cent of the minimum wage.

Exactly how much will social security contributions amount to for new businesses in 2023?

In the first half of 2023, the contribution base – that is, 30 per cent of the minimum wage – will amount to 1,047 PLN. However, due to the increase in the minimum wage from 1 July 2023, it will rise to 1,080 zlotys. As you can see, this year you will need to be very careful and double-check your social security contributions.

Contributions in the first half of 2023 will amount to:

• pension contribution – 204.37 zł;
• disability pension contribution – 83.76 zł;
• sickness – 25.65 zł;
• accident insurance – 17.48 zł.

Contributions in the second half of 2023 will amount to:

• pension – 210.82 zł;
• disability – 86.40 zł;
• sickness insurance – 26.46 zł;
• accident insurance – 18.04 zł.

In summary, the total social security contributions, including the voluntary sickness contribution, will amount to 331.27 PLN per month for the period from January to June 2023. From July to December 2023, however, this will be PLN 341.71 per month.

The costs of running your own business in 2023 – by how much will contributions rise?

Compared with 2022, when self-employed people on the preferential ZUS scheme pay PLN 285.71 per month, in 2023, for January, they will have to pay 45.55 PLN more per month (331.26 PLN per month). From the middle of the year, however, they will pay an extra 56.00 zł for July 2023 (341.71 zł per month). The total increase for the whole year amounts to 609.33 zł. 

Cost of running a sole trader business in 2023 – health insurance contribution

From January 2022, as a business owner, you are required to calculate the total amount of your social security contributions yourself. The amount of the health insurance contribution depends on your income and the tax regime under which your business is taxed.

If you are taxed on the tax scale, the health insurance contribution will be 9 per cent of your income. However, if you are taxed at a flat rate, it will be 4.9 per cent of your income. If you have a low income or have incurred losses, you cannot pay less than 9 per cent of your income as a health insurance contribution.

In 2023, this will amount to 314.10 zł for the first six months and 324 zł per month from July to December 2023.

The conclusion is simple: with each passing year, the costs of running a business are rising, and using a business incubator is becoming even more cost-effective.