Poland has continued to raise its minimum wage in recent years. Under the latest update, the minimum wage has increased from PLN 4,300 to PLN 4,666. This change provides employees with stronger income protection while increasing the labor costs faced by employers.

Employer’s Perspective: The True Cost of Employment

From the employer’s perspective, the cost of employment goes beyond the gross salary. Using the PLN 4,666 minimum wage as an example:

1. Net salary (take-home pay): PLN 3,510.92
2. Employee deductions: PLN 1,155.08
3. Employer extra contributions: PLN 955.60

This shows that the total labor cost for employers is significantly higher than the salary employees actually receive.

Employee’s Perspective: Salary Breakdown

For employees, the gross wage is subject to mandatory deductions for Social Security and income tax. For example:

1. Health insurance: PLN 362.37
2. Pension contribution: PLN 455.40
3. Disability insurance: PLN 69.99
4. Sickness insurance: PLN 114.32
5. Personal income tax: PLN 153
6. Net salary (after deductions): PLN 3,510.92

Important Note

The amounts above are provided for illustrative purposes only. Actual figures will vary depending on official policy updates, individual tax reliefs, and applicable Social Security rates.

What becomes clear from this example is that minimum wage adjustments affect both employees and employers. Employees benefit from higher net salaries, while employers must carefully account for the increased total labor costs in their workforce planning.

Remoly — Your Global EOR & Employer of Record Partner

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* This article is for informational purposes only and does not constitute legal advice. For specific compliance guidance, consult a qualified professional.