The retirement age in Poland starts at 60 for women and 65 for men. In order to be entitled to a pension it will be necessary to prove the appropriate insurance period: 20 years - women, 25 years - men. From 2022, it will be 25 years for both sexes. An application for a pension takes into account the both contributory and non-contributory periods. Only periods of contributions are included in our length of service. In other words, the periods for which pension contributions and insurance were paid. This is the time when we worked on a contract of employment, contract of mandate, period of conducting business activity, maternity allowance, etc.
It is important to remember that a person who performs work under a contract of specific work is not subject to social insurance. Contract for specific work is not taken into account in length of service and does not influence the amount of pension.
Foreigners employed in Poland and entrepreneurs are entitled to pensions on similar terms. Persons working on their own account make social security deductions based on the declared income which cannot be lower than 60 percent of the average wage. And the vast majority pays exactly these minimum social insurance contributions. That is why such persons will receive the minimum pension or slightly above.
It should be emphasized that the amount of pension is not determined by you conduct the business or not, but from paying the pension contributions. In case the contribution rate is 499 zlotys for 20 years - the amount of the pension will not make even 1000 zlotys, while the minimum pension level is 1000 zl. In such event, the state co-finances the minimum amount. For example, person who worked for 22 years and paid contributions of 499 zl per month will receive only 730 zl, so the state will pay 270 zlotys to the minimum pension rate of 1000 zl.