Thousands of Poles who have reached retirement age are choosing to delay claiming their pensions and continue working. By doing so, they forgo the 13th and 14th additional pension payments but can benefit from a tax exemption worth up to PLN 5,976.
Women after turning 60 and men after 65 must decide whether to stop working and collect their pension, keep working, or combine a pension with employment. A growing number of seniors opt to stay in the labor market, according to data cited by the daily Fakt.
Remaining on the job means giving up not only the monthly pension but also the extra 13th and 14th payments that come with it. However, those who work can take advantage of the so-called PIT-0 tax relief. This exemption allows people of retirement age to pay no personal income tax on earned income up to PLN 85,000 per year.
Tax break PIT-0 attracts more seniors
Figures from the Ministry of Finance show the popularity of PIT-0 is rising. In 2025, 178,000 people used the relief, compared with 166,000 a year earlier and 160,000 in 2023. The trend reflects growing awareness of the financial benefits of staying employed.
The exact amount saved depends on individual earnings. For someone earning the full tax-free limit, the annual saving can reach PLN 5,976 – the maximum possible under current rules. This sum equals 12% of PLN 85,000 minus the tax-free allowance, though calculations vary by personal circumstances.
Individual calculations key to decision
Whether the move pays off depends on one’s specific financial situation. For employees with higher monthly wages, continuing work and claiming the relief can be advantageous. But for senior entrepreneurs, the equation is different.
– To benefit from the relief, a self-employed senior must not collect a pension and must pay social security contributions. The tax saved does not compensate for those 'losses’ – said Piotr Juszczyk, a tax expert at inFakt.
Each person must therefore run their own numbers before deciding. Analysts recommend comparing the net income from working (after tax savings) with the net pension plus 13th and 14th payments to see which option yields more cash in hand.
Źródło: WNP.PL, Fot. PAP/Andrzej Jackowski
