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  • Suspension benefit for those conducting non-agricultural economic activity and for employed on the basis of a civil law contract.
Article:

Suspension benefit for those conducting non-agricultural economic activity and for employed on the basis of a civil law contract.

02 April 2020

Małgorzata Mędrala, Attorney-at-law, PhD in legal sciences |

The Act of 31 March 2020 amending the Act on special remedies related to the prevention, neutralization and eradication of COVID-19, other infectious diseases and crisis situations caused by them, as well as some other acts has introduced so-called: “suspension benefit” (świadczenie postojowe).

Who is entitled to the suspension benefit?

Suspension benefit is entitled to:

1. a person conducting non-agricultural business activity;

2. a person performing a civil law contract - i.e. an agency contract, mandate contract, specific work contract or other service contract to which the provisions on the mandate contract or specific work contract apply.

However, those mentioned above cannot have any other legal title to social security.

In addition, suspension benefit is only available to residents of Poland if they are:

1. Polish citizens; or

2. having the right of residence or the right of permanent residence on the territory of Poland, citizens of the Member States of the European Union, Member States of the European Free Trade Agreement (EFTA) - parties to the agreement on the European Economic Area or the Swiss Confederation; or

3. foreigners legally staying on Polish territory.

What are the conditions for granting a suspension benefit?

The general condition for granting a suspension benefit is a downtime in business activity by a person conducting non-agricultural business activity or by the mandator or the orderer (with whom a civil law contract has been concluded) due to coronavirus.

Specific conditions for the granting of suspension benefit differ for those conducting non-agricultural economic activity and for those employed on the basis of a civil law contract.

A person conducting non-agricultural business activity is entitled to a suspension benefit if he / she started his / her business activity before 1 February 2020 and:

  1. did not suspend business activity and income from non-agricultural business activity within the meaning of the provisions of personal income tax obtained in the month preceding the month of submitting the application for suspension benefit was at least 15% lower than the income obtained in the month preceding this month and was not higher than 300% of the monthly average wage from the previous quarter announced by the President of the Central Statistical Office (i.e., according to estimates, approx. PLN 15.6 thousand gross); or
  2. suspended their non-agricultural business activity after 31 January 2020 and the income from non-agricultural business activity within the meaning of the provisions of personal income tax obtained in the month preceding the month in which the application for suspension benefit was submitted, was not higher than 300 % of the monthly average wage from the previous quarter announced by the President of the Central Statistical Office.

A person performing a civil law contract is entitled to a suspension benefit if:

1. a civil law agreement was concluded before 1 February 2020;

2. the income from a civil law agreement within the meaning of the provisions of personal income tax obtained in the month preceding the month in which the application for suspension benefit was submitted was not higher than 300% of the monthly average wage from the previous quarter announced by the President of the Central Statistical Office.

In the event of convergence of rights to more than one suspension benefit only one such benefit is granted

How much is the suspension benefit?

As a rule, suspension benefit, is granted in the amount of 80% of the minimum wage for work (i.e. PLN 2,080).

However, if the sum of incomes from civil law contracts within the meaning of the provisions of personal income tax obtained in the month preceding the month in which the application for suspension benefit was submitted is less than 50% of the amount of the minimum wage for work in 2020 (i.e. PLN 1,300 gross), suspension benefit is granted in the amount of payment for performing these civil law contracts.

If you need more information or you need help with formalities, we encourage you to contact our specialist in this area:

Małgorzata Mędrala PhD

[email protected]