1. Gross versus net remuneration
Gross remuneration is the total remuneration, which will be reduced by due public benefits such as income tax and social security contributions.
Net remuneration is the remuneration paid to the employee after deduction of contribution and tax liabilities.
2. Students
Persons studying at Polish post-secondary schools or studying at a Polish university are exempt from Social Security contributions if they are under 26 years of age.
Then health insurance is provided by the parent/guardian or directly by the school.
For such individuals, gross remuneration = net remuneration.
3. Social security [ZUS] contributions
Contributions to the Social Security are paid by both ATERIMA and the Contractor - the amount is:
|
Type of insurance
|
Aterima
|
Contractor
|
|
Retirement pension
|
9.76%
|
9.76%
|
|
Pension
|
6.50%
|
1.50%
|
|
Work accident
|
1.67%
|
0%
|
|
Sickness
|
0%
|
2.45%*
|
|
Health
|
0%
|
9%
|
|
EF
|
2.45%
|
0%
|
|
GEBF
|
0.10%
|
0%
|
|
TOTAL
|
20.48%
|
22.71%
|
*The voluntary sickness contribution is 2.45% of gross salary. It gives the right to receive sick pay for sickness-if the contribution has been paid for 90 days.
E.g. For a salary of PLN 25 gross/hour, the Social Security contributions will be as follows:
|
Contractor
|
Contribution
|
PLN 25 gross
|
|
Retirement pension
|
9.76%
|
2.44 PLN
|
|
Pension
|
1.50%
|
0.38 PLN
|
|
Sickness
|
2.45%
|
0.61 PLN
|
|
Health
|
9%
|
2.25 PLN
|
|
TOTAL
|
22.71%
|
5.68 PLN
|
4. Income tax
When paid in Poland
The tax paid in Poland is 12% on the tax base.
From 2022, the tax-free amount has been raised to PLN 30,000 per year.
The contractor's tax option is determined on the basis of the PIT-2 statement.
Our recommended solutions are to take advantage of the option to reduce tax by PLN 300 every month (1/12 option) - the contractor will then receive a higher net salary throughout the year.
Persons under the age of 26 are exempt from income tax.
When paid abroad
It is possible to pay tax in the home country - for this, you will need to present a document confirming the Foreign Tax Residence Centre - which is valid 365 days from the date of issue.
5. Employee capital plans ( PPK)
Government scheme - an additional contribution to a pension made up by the Polish State, ATERIMA and the Contractor. Everyone joins the programme compulsorily from the 3rd month onwards. The basic contribution on the part of the Contractor is 2% of the remuneration.
Only students up to the age of 26 are excluded from the programme, while over the age of 55 joining is voluntary.
It is possible to leave the current contribution, increase or cancel the contribution in full.
