Peculiarities of employment in Poland: what is the difference between gross and net salary
Ukrainians in Poland are actively looking for work, and in this regard, they should know the main nuances of employment in the country. Learn more about types of employment contracts in Poland, gross and net wages and tax payments
Since the beginning of the full-scale war, Poland has received the largest number of refugees. Ukrainians who have settled down in Poland are looking for and finding work, so they should know the basic nuances of employment. We will tell you more about what you need to know below.
Types of employment contracts in Poland
There are several types of employment contracts in Poland:
• Umowa o pracku (employment contract). Under this contract, the employer pays all social contributions, and the employee receives a social package. You can also use benefits when paying PIT;
• Umowa zlecenie (agreement-assignment). This contract provides for a waiver of social security contributions in case of illness. At the same time, the reduced amount is returned only after the end of the year during the recalculation, 1/12 of the reduced amount may be added to the net salary under the employment contract every month;
• Umowa o dzieło (subcontract). Only income tax is deducted from the salary, and social contributions are not deducted. The worker under this type of employment relationship does not have any social protection.
Salary "gross" and "net": what is the difference
When searching for a job, you can find the terms "gross" and "net" in the ads, which refer to wages. Many Ukrainians do not know the difference between them, so they cannot correctly calculate their earnings.
We explain the difference that you are not in an awkward situation with a Polish employer.
Salary "gross" means that the amount of remuneration is specified before deduction of taxes. Usually, Polish employers specify it. Remember that you will receive less than the specified gross amount.
"Net" salary is the amount after deduction of all taxes and social contributions.
Be careful and pay attention to what salary is indicated in the vacancy or employment contract.
How to pay taxes in Poland?
Poland has a complicated tax system. There are a number of benefits and compensations that affect the size of the net salary.
In particular, the PIT is recalculated every year, which can increase the net salary. Personal Income Tax (PIT) is a tax that individuals pay on their income. It is calculated on almost all incomes of individuals.
The basic tax calculation system looks like this: the tax for incomes up to 120,000 zlotys per year is calculated according to the formula of 12% - 3,600 zlotys. 3,600 zlotys is a reducing amount, and it is 12% of the tax-free minimum (30,000 zlotys per year).
Polish legislation provides for several exceptions that are exempt from the payment of RIT:
• Foreign citizens under the age of 26 who are officially employed under an employment contract (umowa o pracze) and earn up to PLN 85,528 per year;
• If the same person works under an agency contract (umowa zlecenie), he may not pay tax if he has Polish residency. Residency means staying in Poland for more than 183 days a year and having "vital interests".
Social deductions to ZUS
A certain part of the salary is deducted to ZUS (Social Security Administration). They include:
• pension contribution – 9.76%;
• contribution in case of loss of working capacity – 1.5%;
• contribution in case of illness (payment of sick leave) – 2.45%;
• health insurance - 9% of gross - the sum of the first three contributions.
These contributions are deducted only when employed under an employment contract. The assignment agreement does not provide for the payment of these contributions.
Gross and net salary calculators
Calculate your salary using one of the online calculators:
We will remind you! In Poland, amendments were made to the law on assistance to Ukrainians fleeing the war. Learn more about the "freezing" of social security payments when citizens of Ukraine leave Poland, tariffs for accommodation in accommodation facilities, and more at the link.
In Poland, registration for the Health4Ukraine program is open, with the help of which Ukrainians receive money for medicines in local pharmacies. Learn more about how to participate in the program
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