Payroll in Poland.

To calculate salary, you need to:

What are salaries in Poland

In Polish law, salaries are referred to as net and gross.

Net

These are salaries paid to employees «net».
That is, after taxes, contributions and other mandatory payments have been deducted.

Gross

This salary is written in the contract that the manager signs with the employee. Gross salary includes all taxes, fees, additional mandatory payments to the relevant authorities and social security funds.

How to calculate the gross salary in 2023 step by step?

Calculation of insurance payments:

We deduct social security contributions from the gross salary, which is PLN 5,000.00:

pension insurance: PLN 5,000.00 × 9.76% = PLN 488.00

disability insurance: PLN 5,000.00 × 1.5% = PLN 75.00

disability insurance: PLN 5,000.00 × 2.45% = PLN 122.50

TOTAL: PLN 685.50

Calculation of the amount of health insurance payments:

Amount of social insurance premium: PLN 685.50
The basis for the calculation of the health insurance premium is the salary less social security contributions: PLN 5,000.00 - PLN 685.50 = PLN 4,314.50
The health insurance premium is. PLN 4,314.50 x 9% = PLN 388.31

Calculation of income tax on salary:

Salary minus social security contributions: PLN 4,314.50

Deductible expenses: PLN 250

PLN 4,314.50 - PLN 250.00 = PLN 4,064.50 rounded up to PLN 4,065

The basis for calculating the advance payment of income tax is. PLN 4,065.00, and the tax threshold is 12%.

PLN 4,065.00 x 12% = PLN 487.80

From the above amount, subtract 1/12 of the untaxed amount, i.e. PLN 300

PLN 487.80 - PLN 300.00 = PLN 187.80

The above amount should be rounded up and there arises an advance payment of income tax due to the tax office for a given employee, which amounts to: PLN 188.

How to calculate the net salary?

This is the last step in which we calculate the net salary:

From the total amount, i.e. PLN 5,000.00, we subtract social security contributions of PLN 685.50, health insurance contributions of PLN 388.31 and advance income tax of PLN 188.00

PLN 5,000.00 - PLN 685.50 - PLN 388.31 - PLN 188.00 = PLN 3,738.19

The net salary of this employee is PLN 3,738.19

How much does a person under 26 earns?

If the employee is subject to income tax exemption, his net salary will be:

From the total amount, i.e. PLN 5,000.00, we subtract social security contributions of PLN 685.50, health insurance contributions of PLN 388.31 and advance income tax of PLN 0.

PLN 5,000.00 - PLN 685.50 - PLN 388.31 - PLN 0 = PLN 3,926.19

The net salary for this employee is. PLN 3,926.19

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