Prime Minister Donald Tusk Courtesy of KPRM

Poland's prime minister is expected to announce big changes on Friday concerning payments into the country's public social insurance scheme (ZUS).

The prime minister is expected to announce reductions to flexible employment arrangements, shifting the ZUS payment burden onto employers, which is expected to appease the political left and union bosses, Rzeczpospolita reported.

However, the changes are expected to do very little to help those currently looking for work. Economists say the higher costs of hiring workers that would result from Mr Tusk's plan could actually worsen the employment situation for those under 25, a group that's already suffering from high unemployment in the country.

Observers worry the changes could push more workers into the grey market.

Among the changes are requirements that those who work under a contract for a specific task (umowa o dzieło) will have to make contributions to ZUS, while students under 26 working under a contract of mandate (umowa zlecenia) could lose their ZUS-payment exemptions.

Poland A.M.