Salary Calculator
Poland
Streamline your international hiring strategy with the Native Teams salary calculator. Our tool empowers employers to accurately assess the total cost of employment in various countries. By inputting salary information, you'll receive a detailed analysis of all associated expenses, such as taxes, healthcare, and pension contributions, enabling informed hiring decisions.
We've noticed that you are interested in Payroll in Poland!
Please fill up your email address and get free access to your salary breakdown and a localised work contract template.
How does the salary calculator for Poland work?
The salary calculator for Poland works by estimating both gross and net earnings, taking into account various factors. It starts with the gross salary, which covers base wages, bonuses, and other agreed compensations. The next step involves applying Poland’s income tax system, which uses progressive tax brackets to calculate how much will be deducted, including relevant deductions for expenses like healthcare and education.
Social security contributions from both the employee and the employer are also included, covering essentials like pensions and healthcare. Once all taxes and contributions are accounted for, the calculator provides the net salary—the actual amount the employee takes home.
What is the salary cost in Poland?
Employers are required to contribute approximately 20.48% to 22.14% of the employee’s gross salary to social security. This covers:
-Retirement pension: 9.76%
-Disability insurance: 6.5%
-Accident insurance: 0.67% to 3.33%, depending on the industry
-Labour Fund: 2.45%
-Guaranteed Employee Benefits Fund: 0.10%
-Health insurance: 9%
How much tax do you pay in Poland?
Poland has a progressive tax system for personal income. It is structured with two main tax brackets:
17% tax rate on income up to PLN 120,000 (about €26,000)
32% tax rate on income above PLN 120,000
In addition to these rates, there is a tax-free allowance for individuals earning below PLN 30,000. This means that low-income earners may pay little to no income tax, depending on their income level.
Besides income tax, Polish employees also contribute to social security, which covers pensions, healthcare, and unemployment benefits. The social security contributions are separate from income tax but are deducted from gross salary.
For high-income individuals, a solidarity tax of 4% is applied on annual income exceeding PLN 1 million.
*Please note that these rates can vary based on legislative changes.
What are the mandatory employee benefits in Poland?
Polish employees receive paid annual leave, with 20 days granted for those with less than 10 years of experience and 26 days for those with more than 10 years. Moreover, employers contribute 9.76% of an employee's salary to the social security system for pensions, and there is an optional Employee Capital Plan (PPK) where both employer and employee contribute toward retirement savings.
Polish law requires employers to provide workers' compensation insurance, ensuring protection in case of work-related accidents. Additionally, maternity, paternity, and parental leave are well-protected, with both parents eligible for leave, depending on the situation.
Are there any other benefits or additional expenses?
In Poland, employers offer a variety of non-mandatory benefits to complement the country's mandatory social security system. One common benefit is meal vouchers or lunch cards, which are popular for their tax advantages. Employees can use these cards to purchase meals at participating restaurants.
Employers also offer supplementary pension plans, allowing employees to improve their retirement savings beyond the mandatory contributions required by law. Some companies even match or exceed the mandatory contribution rates, giving employees an additional incentive to save for retirement.
Other common benefits include subsidised gym memberships, business travel insurance, and transportation allowances. Additionally, transportation subsidies, including coverage of public transport costs or company cars for senior staff, are frequently offered, enhancing convenience and mobility for employees.
What is the difference between Gross and Nett in the Poland Salary Calculator?
The distinction between gross and net pay in salary calculations is key to understanding an employee's total earnings and take-home pay. Gross salary is the total amount an employee earns before deductions, including base salary, bonuses, and other allowances.
This figure is the basis for calculating taxes, social security contributions, and other required deductions. In contrast, net salary, sometimes called "Nett," is the amount an employee receives after subtracting all these deductions. This figure includes deductions for income tax, social security, and possibly health insurance premiums, representing the money available to the employee for personal use after all financial obligations have been met.
How can Native Teams help with employment, salary and taxes in Poland?
At Native Teams, we provide a full range of solutions to streamline the management of employment, payroll, and taxes in Poland. Our platform offers tools and services designed to simplify payroll processes while ensuring compliance with Polish legal standards. We assist employers with managing salary calculations, tax responsibilities, and benefit administration.
With our support, you can guarantee accurate, on-time salary payments, reduce the complexities of administrative tasks, and feel confident that all legal obligations are being met efficiently.
