Earning on the side without a company does not deprive a farmer or household member of insurance in KRUS — a person running unregistered business activity stays in the agricultural system on the previous rules. They do not have to meet the conditions that apply with a registered business, do not file a declaration of continuation of insurance, and do not pay a double pension and disability contribution. However, unregistered business activity must be distinguished from ordinary work on the farm and from other forms of farm sales, which have their own rules.
KRUS's position in one sentence
The Agricultural Social Insurance Fund (KRUS) directly explains that a farmer or household member who takes up activity which, under the Entrepreneurs' Law, does not constitute business activity and does not require entry in CEIDG, does not have to meet the conditions of art. 5a of the Farmers' Social Insurance Act. They continue insurance as before, without a double pension and disability contribution.
The conditions of unregistered business activity itself — the limit of PLN 10,813.50 of revenue per quarter in 2026 and no business in the last 60 months — are the same as for other people. We describe them in the article Unregistered business activity 2026 — limits, rules and who it is for.
What counts as a farmer's unregistered business activity, and what does not
The Entrepreneurs' Law does not apply at all to part of a farmer's activity. These occupations do not need to be registered for other reasons either, and they do not count towards the unregistered business activity limit:
- crop farming, animal rearing and breeding, horticulture, vegetable growing, forestry and inland fisheries,
- agritourism — renting rooms, selling home-cooked meals and other services for tourists on the farm,
- wine production by farmers producing less than 100 hectolitres per year,
- agricultural retail trade, i.e. sale of non-industrially processed products from own crops and breeding,
- activity of rural housewives' associations.
A farmer's unregistered business activity will therefore only cover an occupation going beyond agriculture, e.g. repairing equipment for neighbours, sewing to order, tutoring, selling handicrafts or minor transport services not requiring a licence. Regulated activity, which requires a concession or permit, cannot be run without entry in CEIDG.
Comparison: unregistered business activity vs farmer's company
| Issue | Unregistered business activity | Registered non-agricultural activity |
|---|---|---|
| Conditions for staying in KRUS | no additional ones | among others at least 3 years of uninterrupted insurance in full scope and continued agricultural activity or permanent work on a farm over 1 converted hectare or in a specialised branch |
| Declaration to KRUS | not filed | within 14 days from starting the activity |
| Pension and disability contribution | unchanged | at double rate |
| Annual settlement with KRUS | none | by 31 May a certificate or declaration that the tax on the activity has not exceeded the annual threshold |
| Free professions (e.g. translator, accountant) | no effect on KRUS | exclude staying in KRUS |
The difference is significant: a farmer who registers a business and misses the 14-day deadline for the declaration loses agricultural insurance from the day the activity starts.
Tax and VAT on the farmer's side
Revenue from unregistered business activity is settled on PIT-36 under the tax scale, by 30 April of the following year, with no advance payments during the year. A simplified sales record must be kept, and at the client's request a receipt or invoice must be issued. Agricultural activity taxed with the agricultural tax does not go into this return.
Caution is needed for farmers who are active VAT payers. The status of a VAT payer applies to the person, not to the individual types of their activity, which is why sales from unregistered business activity may be subject to VAT on the same rules as the sale of agricultural products. It is worth checking this before starting the activity.
What happens after the limit is exceeded
When revenue in a quarter exceeds the limit, the activity becomes business activity from the day of exceeding it, and the application to CEIDG must be filed within 7 days. For a farmer this means a second deadline: 14 days for the declaration of continued insurance in KRUS. It can be submitted directly in the CEIDG application. If the farmer does not meet the conditions of art. 5a, they move to ZUS; during start-up relief (ulga na start), when they are not yet subject to pension and disability insurance in ZUS, they still remain in KRUS.
Example: a household member repairing bicycles
Mr Tomasz is a household member on his parents' farm and is insured in KRUS. From April 2026 he repairs bicycles for the municipality's residents. In the second quarter he earns PLN 6,300, in the third PLN 9,900 — each time below the PLN 10,813.50 limit. He keeps a sales record, and in April 2027 he will declare income on PIT-36, deducting the costs of parts and tools. His KRUS insurance and the amount of contributions do not change. If in the fourth quarter he took an order to service a bicycle fleet for a rental shop and exceeded the limit, within 7 days he would have to register a business and within 14 days file a declaration with KRUS — and as a household member insured for several years, check whether he meets the 3-year condition.
How Good Balance can help
We help farmers and household members assess whether a planned activity fits within unregistered business activity, agricultural retail trade, or requires business registration. We settle PIT-36, and when revenue grows we guide you through registration and KRUS formalities as part of the sole proprietorship support service. The rules of registration itself are described in the guide How to set up a JDG.