Undeclared unemployment trap

As of 1 July 2023, there are fresh restrictions on undeclared activities, i.e. 1 that can be conducted without being registered in Central registry and Information on Business Activity (CEIDG). In order to avoid registration of the activity, monthly revenues may not exceed 75% of the minimum wage. In terms of maintaining unemployment status, this limit is now up to 50%.

By the end of June of this year, unincorporated activities were allowed if the monthly income did not exceed 50% of the minimum wage, or PLN 1745. Since July, the minimum wage has increased to PLN 3600, as well as the provisions on undeclared activity have changed. Now the maximum gross that can be achieved in order to avoid the request to registry a company in CEIDG is 75% of the minimum wage, i.e. 2700 PLN. In addition to the income criterion, there are 2 another conditions for the pursuit of undeclared business.

The first is that no economical activity has been carried out in the last 60 months.

The second criterion states that undeclared activities cannot be carried out if the provisions require registration, for example in the event of obtaining concessions or permits. Unregistered activities are frequently utilized to test the business possible of the company, without gathering formal requirements and paying ZUS contributions.

As regards the unemployed, undeclared activities can be carried out primarily on the basis of civilian law contracts, specified as a work contract, contract of contract or contract of collection assistance. However, unemployed people who want to operate without registration cannot do so on the basis of civilian law contracts, due to the fact that they would lose unemployment status. In this case, they must most frequently choose a sales contract.

The fresh rules in force since 1 July let the unemployed to engage in undeclared activities if the income from them does not exceed 50% of the minimum wage, not 75%, as for those employed. The current minimum wage rate is PLN 3600, which means that unemployed people can gain a maximum of PLN 1800 without registering their business in CEIDG.

Overshooting this 50% threshold will consequence in failure of unemployment position and insured individual status, which will affect access to medical care. Therefore, the unemployed must carefully monitor their income in order not to exceed this limit.

Dear reader, we remind you that all legal matters in this substance we compose about can be complicated and frequently require the aid of a lawyer. It's worth discussing it with a lawyer before taking legal action.

Contact us now. We'll review your case and see precisely what we can do about you. Our experts have already helped a number of clients who thought they were already in an impossible situation.

Write us or call us now.

579-636-527

[email protected]

Daniel Głogowski

Publicist, author and social activist. The first articles were published in 1999 for global publishers. For more than 30 years, he has gained his experience through cooperation with the largest editorial offices. In his articles, he sought to address controversial themes and present first viewpoints that allowed for a deeper knowing of the issues discussed. Over the years, he gained a reputation as a reliable journalist. Contact: [email protected]