The Social Insurance Institution issued an crucial message, which may straight affect the portfolios of millions of Polish elder citizens. It is about the anticipation of retaining as much as 400 zlotys, which are usually deducted from the thirteenth and fourteenth pensions. The key to obtaining a higher “on-hand” benefit is to submit 1 simple application. However, we must act rapidly before they start paying out additional benefits in 2025.
Many pensioners do not realize that an advance on income taxation is charged on their additional yearly benefits, even if their yearly income does not exceed the tax-free amount. The submission of the applicable paper in ZUS allows you to avoid this deduction and enjoy the full amount of the benefit immediately. This is simply a real economy that does not require complex procedures, and money alternatively of waiting for a return in the yearly PIT settlement, goes to the pensioner's pocket immediately.
Why does ZUS deduct taxes from additional pensions?
The problem arises from the way taxes are settled in Poland. Although the yearly tax-free amount is PLN 30,000, The Social Insurance Institution is obliged to charge an advance on income tax for each benefit paid, including the 13th and 14th pensions. This is due to the fact that ZUS acts as a payer and does not know that the pensioner has another sources of income which could in full exceed that limit.
In practice, this means that even if the elder earns little than PLN 30 1000 per year and the taxation is not due to him, ZUS will inactive deduct the advance. For example, thirteenth pension in 2025, amounting to PLN 1878.91 gross, will be reduced by a taxation advance. The same regulation applies to the fourteenth pension paid in autumn. Of course, the overpaid taxation will be refunded, but only at the yearly PIT settlement, which is many months later. In this way, older people's money is unnecessarily "freezing" in the account of the taxation office.
EPD-21 form. Key to higher hand payout
The solution is simply a simple paper called EPD-21 form. It is simply a ‘Application not to apply any further advances on income tax’. erstwhile submitting it to the Social Insurance Institution, the pensioner informs the institution that his expected income in a given taxation year will not exceed the amount of PLN 30 000. On this basis, the Social Insurance Institution ceases to levy advances on the taxation on benefits paid.
What does this mean in practice? Both the thirteenth and fourteenth pensions will go to the elder account in a higher net amount. The difference that would usually be deducted as an advance will stay at the disposal of the pensioner. Total savings per year can scope up to PLN 400. It should be stressed that this is neither a fresh benefit nor a peculiar allowance. It is simply a anticipation to avoid a hit-and-run that would otherwise not be returned until next year.
How and where to apply? Step by step instruction
The EPD-21 proposal is very simple and does not require expertise. ZUS has prepared respective convenient ways so that everyone entitled can do it without a problem. The application may be submitted:
- Personally at the ZUS facility: Just go to the nearest branch of the Social Insurance Institution and submit a completed form. This can besides be done by an authorised proxy.
- By letter: The completed and signed application may be sent by conventional message to the address of the competent ZUS office.
- Electronically by PUE ZUS: The fastest and most convenient method is to submit the application via the Electronic Services Platform (PUE) ZUS. simply log into your account, find the appropriate form and send it online.
It is crucial to apply before the payment deadline. ZUS recommends not to hold and complete the formalities as shortly as possible, to guarantee that the institution can process the paper and apply the relief already at the nearest payment of thirteen.
Who can benefit, and what conditions must be fulfilled?
The right to apply for an EPD-21 is granted to any individual who receives a pension from the Social Insurance Institution, who provides that its yearly taxable income will not exceed PLN 30 000. On the another hand, the right to a thirteenth pension is granted to persons who at 31 March of a given year are entitled to 1 of the following benefits:
- pensions (including bridge, partial, equity),
- invalidity pensions (including training, social, family),
- Pre-retirement or pre-retirement benefits,
- teacher compensation,
- parental supplementary benefit (‘Mama 4+’).
The most crucial condition is that the basic benefit payment (e.g. retirement) should not be suspended at 31 March. Only then will ZUS automatically admit and retreat thirteen. Submission of EPD-21 is an additional but very cost-effective step that allows you to enjoy a higher amount of benefits right away, without undue expectation.
Read more:
ZUS will pay the seniors up to PLN 400. Just make 1 application before you pay!
