ZUS to Cover Pregnancy Sick Leave Costs as Parliament Weighs Major Reform

The Polish Parliament is debating a bill that would shift the entire cost of pregnancy-related sick leave from employers to the Social Insurance Institution (ZUS) from the very first day.

Proposed Shifts in Funding Sick Leave

Pregnant employees will continue to receive 100 percent of their base salary during sick leave. However, the proposed legislation aims to change the funding structure, shifting the burden from the employer to the Social Insurance Institution (ZUS) starting on the first day of the medical leave.

Currently, employers are responsible for paying sick leave wages for the first 33 days of the calendar year. The proposed amendment specifically targets pregnancy, removing this financial responsibility from businesses and transferring it entirely to the Social Insurance Fund (FUS).

Addressing Employment Barriers and Recruitment

Proponents of the bill argue that the current system discourages the hiring of young women. Many employers perceive the financial risk of covering weeks of sick pay while simultaneously hiring a temporary replacement as an economic burden.

The architects of the reform believe that moving these costs to the state will level the playing field and discourage the use of non-standard civil law contracts in favor of full-time employment. The change is intended to reduce economic barriers for women planning motherhood.

Fiscal Impact and Legislative Status

While the proposal aims to protect the labor market, it comes with a high price tag. Annual expenditures from the Social Insurance Fund are estimated to increase by approximately 1.5 billion PLN. Supporters argue this could be partially offset by higher employment rates among women.

The bill is still in the early stages of the parliamentary process and has not yet become law. It has passed its first reading in the Sejm and is currently being reviewed by the Extraordinary Committee for Codification Changes.

Expert Concerns Regarding Potential Abuse

Economists have raised alarms about the risk of systemic abuse, such as “fictitious employment” where companies might hire individuals at high wages just before they go on paid leave, knowing the cost will be fully covered by the state. Experts warn that the social insurance system, already facing a deficit, must implement robust controls to prevent these new provisions from being exploited.