Thousands of Retirees Forgo Pension Benefits for Tax Relief: The Catch Behind the Choice

An increasing number of Polish seniors are choosing to remain in the workforce past retirement age to leverage the PIT-0 tax exemption, despite forfeiting their right to supplementary annual pension bonuses.

Working Beyond Retirement Age

In Poland, the retirement age is set at 60 for women and 65 for men. Upon reaching this milestone, citizens are not automatically forced out of the workforce; they may choose to retire and collect a ZUS pension, remain professionally active, or combine both pension collection and continued employment.

Recent data indicates that more retirees are opting to stay in the labor market. Experts emphasize that working past retirement age is often financially advantageous, even if it entails sacrificing supplementary payments like the 13th and 14th pension installments, as it allows for both higher future pension accruals and immediate tax benefits.

The PIT-0 Tax Exemption Mechanism

The core of this strategy is the PIT-0 tax relief. Seniors who reach the retirement age but continue to work are exempt from paying income tax on their employment earnings. However, there is a critical condition: the total annual income generated from work must not exceed 85,000 PLN.

According to Ministry of Finance data, the number of retirees utilizing this relief is growing. In 2025, 178,000 people used the exemption, compared to 166,000 in 2024 and 160,000 in 2023.

Financial Viability and Thresholds

The profitability of the PIT-0 exemption depends on individual earnings. Analysis shows that for those earning approximately 4,806 PLN gross, the tax benefit is 2,016 PLN, while collecting a pension with bonuses yields up to 3,126 PLN.

At an earnings level of 6,000 PLN gross, the PIT-0 benefit rises to 3,492 PLN, surpassing the 3,126 PLN maximum from pension bonuses. Consequently, the PIT-0 exemption becomes the more profitable choice for retirees earning more than 6,000 PLN gross per month.