Combining retirement and other pensions with work
3 listopada 2016
Retired persons have the right to combine their old-age pension with remuneration for work with no restrictions if they:
- have reached the statutory retirement age and
- have terminated their employment relationship concluded before acquiring the right to an old-age pension1.
Pension payment is suspended regardless of the amount of income derived from employment continued with the same employer without terminating the employment relationship upon retirement. This regulation applies to pensioners who had acquired their old-age pension entitlement as of 1 January 2011 and have not terminated their employment relationship upon retirement. The retired persons who have terminated their employment relationship may later sign a new employment contract with the same employer without losing their old-age pension entitlement. Pensioners who had been awarded their pensions before 1 January 2011 may receive the benefit without termination of their employment relationship2.
Certain restrictions concerning benefits combination with incomes from work relate to:
- old-age pensions of persons who had been awarded their pensions before reaching the statutory retirement age,
- other pensions.
These persons are entitled to receive a pension in an amount dependent on acquired incomes.
If the average monthly income equals:
- less than 70% of average monthly earnings – the pension is payable in the full amount,
- from 70% to 130% of the average monthly salary – the benefit is reduced by such an amount so as the received income does not exceed 70% of the average monthly salary, however by not more than the amount of the maximum reduction as fixed for a given type of benefit,
- more than 130% of the average monthly salary – the benefit is suspended.
In 2014 the annual income ceiling3, corresponding to 70% of the average monthly salary, amounted to PLN 31,822.80, and the annual ceiling corresponding to 130% of the average monthly salary amounted to PLN 59,099.00.
1 The obligation to terminate the employment relationship with a former employer came into force with the Act of 16 December 2010 on the amendment of the Act on public finance, and other Acts (Legal Gazette no. 257, item 1726).
2 Judgement of the Constitutional Tribunal of 13 November 2012, ref. no. K2/12 (Legal Gazette of 2012, no. 1285).
3 Income resulting in a suspension of payment or a reduction of benefit – is accounted for on a monthly or annual basis.
(Note: 1 EUR = ca 4.32 PLN)