Every year, minimum and average wages increase in Poland. This affects the amount of insurance and pension contributions that you and I pay. This year, we can expect two increases in the minimum wage. The first took place in January, and the next one is in July.
What awaits us in 2023
From January to July, the minimum wage will be 3,490 PLN brutto, of which the employee will receive 2,696 netto. Naturally, 794 PLN will go towards taxes.
Accordingly, anyone earning the minimum wage will pay higher pension contributions.
The minimum hourly wage will be 22.80 until July and 23.50 afterwards.
Compared to the monthly rate, this is one zloty more. Consequently, umowa zlecenie, which typically specifies an hourly rate, is increasingly becoming less financially attractive.
Poland has been combating this for several years to encourage companies to enter into umowa o pracę agreements.
Why is this being done?
For the security of employees. After all, with umowa o pracę, a person is protected by the Labor Code, whereas with umowa zlecenie, by the Civil Code.
In addition, with umowa zlecenie, it is easier to manipulate income because the employer can log any number of hours.
We will discuss the differences between umowa zlecenie and umowa o pracę in more detail in upcoming topics. Be sure to subscribe to our Instagram and Facebook so you don't miss anything!
What awaits entrepreneurs
Companies that employ people at the minimum wage will pay 578 PLN more in taxes, in addition to the increased salary costs.
If in 2022 an employee on the minimum wage cost a company 3,627 PLN, this year it is 4,205 PLN.
And those who are just starting their business and using ulga na start should also expect increases. The amount of social security contributions is calculated based on the national average wage, which is announced once a year by the Main Statistical Office (GUS). We will cover this topic separately in the next issue.
The second increase is expected in July - the minimum wage will rise to 3,600 PLN brutto, but making any calculations at this point is difficult as a lot can change.
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Stały pobyt in 2022: Permanent residency in Poland with a Karta Polaka - processing and obtaining financial support
Blue Card in Poland in 2022 - everything about the Karta pobytu and temporary residence for highly qualified specialists.
