New ZUS Chief Cautions on Shifting Sickness Pay Burden to State

Poland's Social Insurance Institution (ZUS) faces a potential shift in responsibility for sickness benefits, a move that could significantly relieve employers but presents considerable challenges. Currently, employers cover the first 33 days of an employee's sick leave, with ZUS taking over from the 34th day. A government proposal aims to transfer this entire financial burden to ZUS from day one of illness, a commitment included in the coalition agreement.

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This is a very complex issue and involves many risks. Firstly, it would mean very high costs for the system. Secondly, it would require an extremely efficient mechanism for controlling sick leave and effectively preventing abuse.

However, the new ZUS president, Liwiusz Laska, has voiced strong reservations. He described the proposal as a "very complex issue" fraught with risks, primarily concerning the substantial costs to the system and the need for an exceptionally efficient mechanism to control sick leave and prevent abuse. Laska highlighted the specific nature of the Polish labor market, where seasonal employment in certain sectors could incentivize employers to encourage sick leave during downtime if they are not bearing the direct costs.

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It must be remembered that some industries have seasonal employment. If an employer did not bear the costs of sickness benefits, there could be an incentive to send employees on sick leave during periods of downtime. The risk of abuse would be very high.

Laska stressed that while the idea itself is not inherently bad, the system must be improved and existing procedures tightened first. He believes that addressing potential abuses and strengthening control measures are prerequisites for even considering the transfer of sickness benefit payments. The project's future now hinges on the recommendations of the Economic Committee of the Council of Ministers.

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This does not mean that the idea itself is bad. However, I believe that first the entire system must be tightened and appropriate control mechanisms created.