How is the minimum wage in Poland calculated? Gross and net.

24.09.2020

The minimum wage in Poland.

In Poland, as in other countries, there are restrictions on the minimum wage. These limits are set at the legislative level and are necessary to guarantee working citizens an average standard of living, even with a minimum income. According to official data, the minimum wage in Poland is paid to over 1.5 million employees.
It should be noted that the economy of contemporary Poland allows to systematically increase the minimum wages from year to year. This is due to the decline in unemployment, as well as the economic growth of the entire country.
From January 1, 2020 in Poland, by a government decree, the minimum wage increased by PLN 350 and currently amounts to PLN 2600 gross, i.e. approximately PLN 1870 net. The hourly rate will be PLN 17 gross.

Gross salary.

The gross salary is a cash salary that is specified in the employment contract. This is the sum of your salary before any taxes and contributions to social funds are deducted.
If the contract you signed with your employer specifies an amount, it will be treated as gross salary and your employer will pay tax, social benefits and medical contributions to ZUS.
On average, in Poland, all taxes on payrolls represent approximately 30% of your salary.

Net salary.

The net wage is the wage that is paid to the employee after all taxes and social security contributions have been paid. This is the amount that the employee gets to hand. Let’s take a simple example. If your contract of employment provides for a salary of PLN 3,000, then PLN 2,100 will be in your hands.
To calculate the remuneration you will receive (net), the following formula is customarily used in Poland: the remuneration indicated in the contract should be multiplied by 0.7. And accordingly, to get the gross amount, multiply the net amount by 1.43.

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