Social security contributions based on gross wages are distinct from pension reductions based on net income.
Poland (PL)
Legislator summary
AI generatedThe Supreme Court dismissed the cassation appeal filed by a company against the Social Insurance Institution regarding the calculation of social security contributions. The court clarified that the concept of 'employee income' for social security purposes differs fundamentally from 'actual income' used to suspend or reduce pensions. Consequently, the court held that gross wages must be used for social security contributions, rejecting the applicant's argument to deduct business expenses.
Legislator headnote
AI generated§ 7 ust. 1 rozporządzenia Rady Ministrów z dnia 29 stycznia 1990 r. w sprawie wysokości i podstawy wymiaru składek na ubezpieczenie społeczne; § 1 ust. 2 i 3 rozporządzenia Ministra Pracy i Polityki Socjalnej z dnia 22 lipca 1992 r. w sprawie szczegółowych zasad zawieszania lub zmniejszania emerytury i renty: The concept of income for social security contributions is distinct from actual income for pension adjustments, meaning gross wages apply to contributions while net income applies to pension suspensions.