ZUS Pays Compensation Benefits from the 55th Year of Life – What Conditions Do You gotta Meet?

Social Insurance Institution (ZUS), the key institution liable for the management of the social safety strategy in Poland, introduces crucial changes concerning earlier pensions. The fresh rules supply for the anticipation to get compensation from the age of 55 for women and 60 for men. In the article, we will discuss in item what is the compensation provision, what are the requirements, and what is the process of applying for it.

What is Compensation Benefit?

Compensation is simply a form of financial support that acts as an early retirement for people working in circumstantial professions. It was introduced to compensate for early termination of professional activity in professions which are characterised by circumstantial working conditions. The compensation benefit is governed by the Act and allows the collection of benefits before reaching the general retirement age, subject to certain conditions.

Who can benefit from the Compensation Benefit?

Compensation is only available for persons employed in circumstantial occupations who, due to the particularities of the job, may apply for an early transition to the benefit. In 2024, compensation is due:

• Womenwho are 55 years old,
• Menwho turned 60.

However, as the years go by, the limit ages required to apply for compensation will change. Below is the details of the required limit ages for the coming years.

Age Limits for Compensation Benefits in Nearer Years

For women:

• 56 years – 2025-2026,
• 57 years – 2027-2028,
• 58 years – 2029-2030,
• 59 years – 2031-2032.

For men:

• 61 years – 2025-2026,
• 62 years – 2027-2028,
• 63 years – 2029-2030,
• 64 years – 2031-2032.

What conditions do you request to meet in order to get a Compensation Benefit?

In order to be able to apply for compensation, certain requirements concerning traineeship and the specificity of the profession must be met. Here are the key conditions:

1. Age:

• Women: at least 55 years old,
• Male: minimum 60 years (in 2024).

1. Employment:

• At least 30 years of work experience, covering both contribution and non-contributory periods, should be documented.
• At least 20 years of experience must be linked to working as a teacher or another educator in educational and educational establishments.

1. Job:
   Compensation shall be granted to persons employed in 1 of the following establishments:

• Public and private kindergartens,
• Public and non-public schools (excluding non-public schools without public school powers),
• Public and non-public continuing training facilities,
• Youth education centres,
• Youth Sociotherapy Centres,
• Special education centres,
• Special educational centres for children and young people requiring peculiar learning organisation and methods of work and education,
• Revalidation and education centres,
• Facilities providing care and education to children while studying outside their permanent residence (internets, dormitories).

How is the Compensation Benefit calculated?

The methodology for calculating the compensation benefit is akin to that of calculating the pension. ZUS calculates the amount of the benefit on the basis of:

1. Sums of Valorised Contributions: Includes pension contributions and valued first capital.
2. Average Further Life: This amount is divided by the average life expectancy, which allows to find the amount of monthly benefit.

It is worth noting that compensation must not be lower than the lowest pension applicable in a given year. In January 2024 the average amount of compensation was PLN 3.557.64. By comparison, in January 2023 it amounted to PLN 3.011.58, meaning that the number of people collecting this benefit somewhat decreased, from 14.1 1000 in 2022 to 13.7 1000 in 2023.

What are the Benefits of Obtaining Compensation?

The compensation benefit offers a number of benefits, especially for those working in professions that affect quite a few stress and burden:

1. Early Transition to Financial Support:
   Those working in demanding professions can control to early benefits, allowing early termination of their work and rest.
2. Financial support:
   By providing compensation, they can benefit from financial support akin to retirement, which ensures financial stableness after the end of their work.
3. Compensation for Efforts:
   The introduction of compensation benefits is intended to compensate for the specificity of work in hard conditions, which may increase professional satisfaction and motivation to stay in the profession longer.

How do I apply for Compensation?

The process of applying for compensation requires an appropriate application to ZUS and the required documentation. These are the steps to be taken:

1. Verification of authorisations:
   Make certain you meet all required conditions, including age and internship.
2. Preparation of Documents:
   Prepare papers confirming your work experience and your place of employment in the required facilities. These papers may include work certificates, employment certificates and another papers proving the dimension and kind of work.
3. Submission of the Proposal:
   Apply for compensation in the local ZUS branch. The application can be submitted in individual or electronically by the Electronic Services Platform (PUE) ZUS.
4. Waiting for Decision:
   After submitting the application, ZUS will carry out a paper analysis and issue a decision. In the event of a affirmative decision, compensation will be paid in accordance with the conditions laid down.