According to the principles specified in the act, social insurance concerns farmers and members of the household who work with them and who:
1. have Polish citizenship
2. or stay in the territory of the Republic of Poland based on a visa, residence permit for a specified period of time, permit for
settlement, permit for the stay of a long-term resident of the European Communities, a consent for tolerated stay or related to
the obtaining of the refugee status in the Republic of Poland, or a supplementary protection, or
3. are the citizens of the EU member states, the Swiss Confederation or member states of the European Free Trade Association (EFTA) -parties to the agreement on the European Economic Area.
The insurance covers also the EU member states' citizens, if the EU regulations concerning applying of social insurance systems do not state otherwise.
The act on social insurance for farmers distinguishes two types of insurance:
â˘ old age and disability insurance,
â˘ accident, health and maternity insurance, and two forms of insurance coverage, i.e.:
The following persons are covered by both types of insurance obligatorily:
â˘ farmer, residing and conducting a farming activity on his own account in the territory of the Republic of Poland on the farm being
in his possession, of the area above 1 conversion ha of arable land (including also the group of agricultural producers) or a special section of agricultural production, i.e. activity related to farming, not requiring a farm, the size of which and production type are defined by the act,
â˘ spouse of the farmer,
â˘ member of the household, i.e. a person close to the farmer who is at least 16 years old, remains in a common household with the farmer or dwells in the area of his household, works in this household on a permanent basis and is not related to the farmer by
a labor relation,
if these persons are not subject to another social insurance and do not have a fixed right to old age or disability pension, or the right to social insurance benefits.
The above mentioned reservation indicates that in the process of determining insurance coverage every other insurance in the common insurance system has the priority before farming insurance. An exception to this rule concerns farmers and members of the household undertaking additionally non-farming economic activity or cooperation on conducting such activity, who, in order to stay under farming insurance, should be subject to this insurance by virtue of the act continuously for at least 3 years before the day of starting the non-farming economic activity or cooperation. In addition, they should meetthe following conditions:
â˘ within 14 days of its start they should submit a declaration on continuation of the social insurance for farmers in the Farming Social Insurance Fund (or in the commune office, together with the
request for entry in the register of economic activities,
â˘ simultaneously, still conduct a farming activity or work on a farm on a permanent basis - such farm should have more than 1 conversionhaof arable land, orin the special section,
â˘ not to be an employee and not to be in a labor relation,
â˘ not to have an established right to old age or disability pension or social insurance benefits,
â˘ the amount of the due income tax for the previous tax year on revenues from non-farming economic activity cannot be higher than the "annual order amount" of this tax obligatory for theprevious year, announced by the competent Ministry of Agricultural and Rural Development.
The above principles are related also to the persons resuming their non-farming economic activity, the performance of which has been suspended and also, persons who changed the type of objects of such activity.
Persons receiving a structural pension co-financed from the funds of the European Agriculture Guidance and Guarantee Funds or from the resources of the European Agricultural Fund for Rural Development are subject to old age and disability insurance by virtue of the act until the time they are awarded the right to the old age pension from the farming social insurance.
The persons who do not meet the conditions to be subject to obligatory insurance, for whom farming activity is a permanent means of support (e.g. farmers conducting farming activity on a farm in the area up to 1 conversion ha, their spouses and members of the household as well as the persons who, while being farmers, transferred the land of their household for trees planting) can insure themselves voluntarily upon submitting an appropriate request to the unit of the Agricultural Social Insurance Fund.
Such persons can be covered by insurance in the full scope, i.e. at the same time: an accident, health and maternity insurance as well as the old age and disability insurance or only the accident, disease and maternity insurance.
Persons conducting agricultural activity and subject to a different insurance or having an established right to old age or disability pension can be covered by voluntary accident, health or maternity insurance upon motion only in a limited scope, i.e. only with the right to a one-off indemnity by virtue of permanent or long-term detriment to health. On the other hand, persons who were subject to social insurance for farmers as farmers and stopped conducting agricultural activity without acquiring the right to an old age or disability pension from insurance - if they were subject to old-age or disability insurance for at least 12 years and 6 months after the date of 01.01.1991 and persons who receive farming pension by virtue of inability to work as a periodical pension, can be covered only by voluntary old-age and disability insurance.
A person who meets the conditions of being subject to social insurance for farmers in the full scope is obliged to pay the contributions.
The contributions are paid monthly and in the case when the period of insurance coverage is shorter than one month, the amount of contribution is calculated proportionately to the number of days of insurance coverage.
The contribution for accident, health and maternity insurance is calculated for every insured person equally. Nevertheless, for a person subject to accident, health and maternity insurance upon a motion in a limited scope the contribution is calculated in the amount equivalent with 1/3 of full monthly contribution for this insurance.
The amount of contribution for accident, health and maternity insurance is established by the Council of Farmer's Social Insurance and the President of KRUS announces its height in the Official Journal of the Republic of Poland "Monitor Polski".
The monthly old-age and disability insurance contribution is equivalent with 10% ofthe basic old-age pension. A farmer whose farm entails an area of arable land over 50 conversion hectares pays an additional monthly contribution for old-age and disability insurance at the following level:
- 12% of the basic old-age pension - in the case when the farm covers the area of arable land up to 100 conversion hectares,
- 24% of the basic old-age pension - in the case when the farm covers the area of arable land above 100 conversion hectares, up to 150 conversion hectares,
- 36% of the basic old-age pension - in the case when the farm covers the area of arable land above 150 conversion hectares, up to 300 conversion hectares,
- 48% of the basic old-age pension - in the case when the farm covers the area of arable land above 300 conversionhectares.
A farmer is obliged to pay the basic monthly contribution for old-age and disability insurance in a double amount for the persons working on the farm and conducting a non-agricultural economic activity.
Contributions for agricultural social insurance for three months in a calendar quarter are paid once in a quarter. The contribution payment date falls on the last day of the first month in the given quarter.