Poland plans significant social welfare and tax policy shifts for 2027

Poland is facing significant shifts in social welfare and fiscal policy as the government prepares for 2027. Minister of Family Agnieszka Dziemianowicz-Bąk has proposed increasing the pension indexation rate by raising the share of real wage growth used in calculations from 20% to 30%. This could raise the projected indexation from approximately 3.96% to 4.29%.

Regarding child benefits, discussions regarding the indexation of the ‘800 plus’ program are ongoing, though current budget projections for 2027 do not include funds to increase the amount to 1,000 PLN. Meanwhile, the ‘Active Parent’ (babciowe) benefit is seeing increased popularity, with significant payouts recorded in regions like Łowickie.

On the fiscal side, the government plans to generate an additional 40 billion PLN for the state budget through tax increases and various fees, including higher excise duties on alcohol and tobacco, and potential increases to CIT and VAT. Additionally, the Association of Voivodeships of the Republic of Poland is calling for the elimination of the ‘pension trap,’ arguing that current regulations discourage people with disabilities from seeking employment due to the risk of losing benefits. In the business sector, the minimum health insurance contribution for entrepreneurs is expected to rise to 445.50 PLN in 2027 following an increase in the minimum wage.