What is gross and net?
Before moving directly to the numbers, you need to dwell on two salary parameters - net and gross:
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Net is the employee’s net income after deducting all necessary taxes and fees. This is a “hands-on” figure familiar to many.
Gross is the amount before subtracting various payments.
It is the gross amount that most often appears in various contracts and invitations from employers and other documents. It should be understood that the amount “on hand” will be lower.
Why do we pay payroll tax?
Expert opinion
Dmitry Konstantinovich
Leading expert at Polish Consultant
Since August 2021, the Polish government has introduced benefits for persons under the age of 26. Young people, under certain conditions, no longer have to pay PIT - personal income tax. You can find out who is included in the preferential category and how not to pay tax from this material.
Taxation, incl. and related to remuneration may vary significantly depending on the Voivodeship. Various local surcharges, fees, duties, etc. However, in general, the following taxes are levied (as a % of the gross amount):
- Mandatory pension fund: 9,76%.
- Medical insurance (except for cases covered by separate points): 7,77%.
- In case of disability: 1,5%.
- “Hospital” insurance (chorobowe - payment is mandatory if there is umowy o pracę, for other types of contracts - voluntary): 2,45%.
- Income tax (advance to PIT): 6.63% of the gross amount minus social benefits.
You need to understand that the employer, for its part, will pay taxes and fees on the employee’s salary, which are not listed here. But “gross” is considered to be the pre-tax payment of the employee, without taking into account the employer’s costs.
For example, for a gross salary of 3,000 zlotys, the employer will pay a total of 3,615 zlotys, but the amount of 3,000 will be considered gross. In net form it will be 2,157 zlotys. Let's look at this example in more detail:
Gross | PLN 3,000 |
Pension fund (9.76%) | PLN 293.80 |
Health insurance (7.77%) | PLN 232.98 |
Disability (1.5%) | PLN 45 |
Chorobowe (2.45%) | PLN 73.50 |
Income tax (6.63%) | PLN 199 |
Net | PLN 2,156.72 |
The size of payments may also depend on the level of wages, and part of what was paid in PIT is compensated during recalculations.
Calculator
The above example shows the structure of the calculations, but it is better to obtain exact parameters using the tools offered by Polish government agencies.
For example, calculating net and gross salaries can be done using this calculator, but be sure to keep in mind:
- Choose the type of employment contract accurately - this is of fundamental importance.
- At one stage you will be asked to indicate for whom to calculate taxes: the employee or the employer. Specify this parameter responsibly, because... data may vary significantly.
The division of taxes into those due to the employee and the employer can also be presented in the calculation results.
How much do foreigners earn on average in Poland?
In Poland, citizens and migrants have equal opportunities to find a job. The salary of foreigners will be the same as that of local residents. The only limitation is related to the language: without knowledge of Polish, finding a well-paid job will be very difficult. Also, in order to get a good position, it is advisable to accredit your diploma.
The level of salaries of foreign citizens, as well as local residents, depends, first of all, on the chosen industry and profession. IT specialists, who earn an average of 7-8 thousand zlotys, and doctors, whose salaries reach 6-7 thousand zlotys, are in demand.
But most often, immigrants are hired for seasonal work, as well as professions involving heavy physical labor. This way you can earn 2.5-3 thousand zlotys per month.
Minimum salary in Poland
The simplest situation is with the minimum wage. It is established by law, and for 2021 it is 2,800 PLN gross per month or 18.30 PLN gross per hour for hourly pay. In 2022, an increase in the minimum parameters is also expected - you can learn about this in detail from this material (after the approval of the “minimum” size, the data will be updated in the current material).
However, it is the average salary indicators that are most interesting. There are no longer constant values here, but there are big differences depending on the region, industry, etc.
Dynamics of changes in the minimum wage
Observing the dynamics of any process is interesting because it allows you to trace the trend of what is happening, i.e. in our context, wages increase or decrease.
Obviously, we are talking about a minimum gross payment per month, but for certain types of contracts the salary can be set on an hourly basis. The minimum figures in this case are PLN 18.30 per hour in 2021.
Average indicators are somewhat correlated with minimum indicators, but there is no direct relationship. For information, you can see a graph of the percentage of the minimum wage in Poland in the average wage data:
Average wages
As in any country, average earnings depend on many factors. In the capital, port cities and large industrial centers, pay per hour is usually higher, and in the provinces and agricultural regions it is lower. The salary levels of programmers and workers, teachers and doctors are also different. Pay for public sector workers in Poland is traditionally higher than the national average, and university and college graduates in their first years of work are about 40% lower than their more experienced colleagues.
Based on the results of the first months of 2021, the average salary in Poland in euros is more than a thousand (almost 4,600 zlotys) - this is evidenced by the report of the country's Main Statistical Office.
At the same time, in Warsaw it is almost 5800 zlotys, Gdansk and Katowice - 5100-5300, in Krakow a little more than 4.5 thousand, in other cities the figures are lower. At the same time, 8% of workers have salaries that are twice the average.
Average salaries in Poland
Using the official parameters at the time of publication, it is possible to identify general data on the wage economy in Poland for Ukrainians, other foreigners and citizens of the country:
- Average data for 2021: PLN 4,272.
- 2018: PLN 4,585.03.
- 2019: PLN 4918.17.
- 2020: PLN 5167.47.
- Q1 2021: PLN 5682.
Even based on these parameters alone, we can state a decent increase in average salaries. However, local and industry differences are significant.
You also need to understand that we are talking about average values for the economy, which means that the salaries of managers in the thousands also take part in the calculations. In addition, we recall that the parameters indicated are gross, and at 5,275 zlotys before deductions, it is unlikely that you will be able to receive more than 3,742 zlotys.
According to official statistics, more than 2/3 of workers in Poland earn less than the average for the economy.
In addition, the average salary is not constant. For example, the value indicated for January 2021 by May decreased to 5,186.12 zlotys per month gross.
Average wage parameters by industry
We again use data officially provided by GUS, current as of August 2021. We are talking about industry salaries common to the whole of Poland. We will consider their regional differences below.
The indicators show which sectors are the most profitable, but remember that we are talking about average data , and the spread within one industry can be quite large.
Average salaries by Voivodeship
There are regional differences in each Voivodeship, and they are also distributed by industry.
Information and communication
Construction
Read more about construction workers' salaries in Poland.
Real estate
Industry
Enterprise sector
Recycling
Trade, repair of vehicles
Transport and warehousing
Accommodation and meals
Administration
Let us repeat, the data on wages in Poland is current as of August 2018, but the general picture can be given at any time, because the difference between industry salaries almost always remains, and the dynamics are obvious.
Income in different sectors of the economy
Of course, the level of salaries that foreign citizens can expect in Poland differs greatly from the sector of the economy in which they are employed, as well as from qualifications and progression. Here are just a few examples (before taxes):
- Private enterprise sector – PLN 4,493.
- Industry – PLN 4,559.
- Industrial processing – PLN 4,299.
- Construction – PLN 4,537.
- Trade, car repairs – PLN 4,153.
- Transport and storage – PLN 4,117.
- Accommodation, tourism and gastronomy – PLN 3,271.
- Information and communication – PLN 7,809.
- Real estate services – PLN 4,629.
- Administration and support – PLN 3217.
According to statistics provided by the country's General Statistical Office, the average salary in Poland in 2018 was PLN 4,329, which is approximately equal to 1,202 dollars, or 1,021 euros. However, you need to remember 2 important things. Firstly, we are talking about the accrued salary, and not about the amount of money that the employee receives in hand. All taxes must be deducted from it. And, secondly, the level of remuneration is very different. For example, in agriculture it is quite low, but in the IT industry, on the contrary, it is one of the highest. Thus, the data provided represents a kind of “average temperature in the hospital.”
And here are specific examples by profession, and the average level of income that such a person can receive: (figures are given before taxes):
- Seamstress in textile production – 2000-2400 PLN.
- Truck drivers – PLN 3500 and above.
- Mechanics, carpenters, electricians – 2400-2900 PLN.
- IT specialists, programmers – 7800-8000 PLN.
- Hotel staff – 3000-3500 PLN.
- Salespeople, cashiers, cleaners in stores and other retail outlets - 2200-2600 PLN. This includes well-known chain stores (Bedronka, IKEA, Auchan).
- Builders, masons, welders – PLN 2800-4500, depending on qualifications and form of employment.
- Doctors (including young ones), pharmacists, nurses – from PLN 3,000 and above. In the country's leading clinics, the salaries of experienced anesthesiologists and endocrinologists can reach 5-7 thousand USD.
- Massage therapists, hairdressers, makeup artists – 1500-2000 PLN.
Advice! To get a current and more complete picture, study Polish job sites and analyze the situation.
Peculiarities of remuneration in Poland
In addition to standard wages, there are specific features associated with specific working conditions.
Young professionals
A positive aspect of modern legislation is the increase in the minimum wage for young specialists - people with short work experience.
If previously their payment could be up to 80% of the full rate, now it must be 100%.
Night work
Compensation for work at night (this includes the period from 22:00 to 7:00) must be at least 20% of the lowest hourly rate .
Please note - not from the rate agreed between the employee and the employer, but from the minimum established by law! That is, about 3.4 – 3.5 zł for each hour of the night.
Part-time work
Part-time work is paid in proportion to the time of employment. If we are talking about half the rate, then the minimum gross will be 1300 zł in 2021 .
Payment for downtime
Stopping (suspension) of work under the contract, which arose not through the fault of the employee, is compensated in an amount not lower than the minimum wage . Other types of compensation are made at a similar rate: discrimination, mobbing, etc.
Compensation bonus
In accordance with labor legislation, in Poland there are cases when an employee is required to transfer to a lighter type of work. Most often this is due to pregnancy, nursing mothers, employees who have occupational diseases or are temporarily not fully able to work due to a work-related injury.
Under these conditions, the salary in the new place may be lower than that established by the contract, or received previously, for example, with piecework or due to a large number of night hours.
If the transfer took place as required by law, the employee has the right to a compensation bonus (surcharge) . Such a bonus is calculated in each case in its own way, but in general terms we can say that the employee should receive an additional difference between what he was paid previously and what is due in the new place.
In the case of piecework, the average wage is calculated (in days or hours, depending on the terms of the contract).
Expert opinion
Yulia Vladimirovna
Expert of the online magazine “Polish Consultant”
Unfortunately, there are a number of cases to which compensation payments do not apply:
- Firstly, these are labor legislation norms, which means they relate exclusively to the minds of the labor force. Neither according to the minds of evil, nor according to the minds of evil, compensation is due.
- Secondly, Anti-Crisis Shields (special packages of laws introduced to overcome the consequences of the coronavirus pandemic) give the employer the right, under certain conditions, to reduce working hours and, as a result, wages. In these cases, compensation payments are not provided.
However, I emphasize that the second case must be officially registered at the enterprise. It is not permissible to do this retroactively when, for example, the employee demanded compensation payments. Employees must know in advance that their income will fall.
Earnings in Poland by profession
In Poland, all payments are carried out in the national currency, which is the zloty. However, for the convenience of calculations, we will provide examples of wages by profession in euros. The amount may have slight fluctuations depending on exchange rates.
The professions most in demand among emigrants are medical, construction, and industrial. There are also often vacancies for unskilled labor, seamstresses, operators, assemblers and drivers.
- The salary of a doctor varies between 1100 – 1500 euros. To get a job as a doctor you need to confirm your diploma. The remuneration of surgeons, gynecologists and anesthesiologists is higher than indicated and depends on skills and experience;
- Nannies receive around 650 euros, the same as people who care for the sick and elderly;
- A guide in the country can claim a salary of 600 euros;
- A cleaner earns about 650 euros depending on the place of work;
- The average teacher's salary is 500 euros;
- A welder's salary is valuable. He earns around 1000 euros monthly;
- The driver's salary depends on the specific company. The salary of a truck driver is 1100 – 1400 euros. If the driver is within the country, then about 800 euros;
- A programmer's salary is about 1,500 euros, depending on skills and responsibilities.
More to read:
What vacancies are there in Poland for Russians?
What is the average monthly salary in England?
Which Polish Voivodeships have the highest salaries?
Based on the data presented, let’s look at which Voivodeships have the highest average salaries.
The difference is quite logical - wages are higher in the capital region, as well as in the Voivodeships specializing in industrial production.
UPD. 07/05/2021. Average salary by region for the first quarter of 2021
The General Directorate of Statistics (GUS) has published data on average wages for the first quarter of 2021. The total figure is 5682 zlotys gross (net this is about 4095 zlotys). Growth for the year was 6.6% (a year earlier 7.7%).
In terms of economic sectors, the IT sector has a record of 10,007 zlotys gross, and the anti-record (the lowest figure) for the hotel business and public catering is 3,964 zlotys.
By region, the top three are:
- Lesser Poland Voivodeship – 6079 zlotys.
- Pomeranian – 6076 zlotys.
- Lower Silesian – 6070 zlotys.
The lowest figures are in the Warmian-Masurian (5310) t Podkarpackie (5311) voivodeship. All data can be seen on the infographic from money.pl:
Wages by region of Poland
In individual voivodeships of Poland, wages differ significantly. Quite high salaries are offered in the capital region, in particular in Warsaw. It is worth considering that men earn about 20% more than women.
Regions of Poland with the highest salaries in 2021
- Silesian Voivodeship (Katowice) – PLN 5,805.37 (EUR 1,265)
- Lower Silesian Voivodeship (Wroclaw) – PLN 5,722.68 (EUR 1,245)
- Lesser Poland Voivodeship (Krakow) – PLN 5,520.79 (EUR 1,200)
Minimum salary in Poland in 2021
On September 15, 2020, the Polish government published an official decree on the minimum wage for 2021. In accordance with the document, it is established:
- Monthly salary – at least 2,800 PLN gross (increase by 200 PLN compared to 2020).
- The lowest cost for one hour is 18.30 zlotys gross (an increase of 1.3 zlotys compared to 2020).
Initial promises to increase the “minimum wage” to 3,000 zlotys were not fulfilled. According to the Cabinet of Ministers, the reason is the crisis caused by the coronavirus pandemic. You can learn about other vicissitudes of the adoption of the minimum wage resolution from this material.
Is it necessary to change the contract if the minimum wage increases?
The mentioned changes in labor legislation, and in particular the increase in the minimum wage, do not lead to the need to renew the employment contract.
Even if it was previously signed on terms worse than those that entered into force, the contract remains valid, but the terms of remuneration are automatically established in accordance with the law.
We are talking about contracts with a minimum wage. If the salary is higher than the minimum amount, and there is a need to increase it, this must be documented.
Godziwego wynagrodzenia: what is decent wages?
Foreigners familiar with Polish legislation know that Article 13 of the Labor Code of the Republic of Poland establishes the “ right to fair (decent) remuneration for work .” In this regard, the question often arises: how to understand whether the salary is fair and adequate to the duties performed?
Unfortunately, the laws do not have an unambiguous interpretation of these concepts, just as the mechanisms for determining decent wages are not presented. Citizens of Poland raise similar questions, and not only raise them, but also try to establish a definition of fair wages in court.
Legal practice
A judicial precedent was created back in 2010, when one of these cases reached the Supreme Court of the Republic of Poland, and this is what it determined in its ruling (translation):
“Fair remuneration is appropriate to the work performed, correct and fair […] Such remuneration meets the criteria established by Article 78 §1 of the Code of Practice.”
It is unlikely that recognizing the just as honest, and the worthy as right, makes it possible to better understand the situation. Perhaps the answer lies in Article 78 kp? No, the first paragraph of this article also contains general words that remuneration must correspond to the nature of the work performed and the qualifications required to perform it.
Obviously, the court could not ignore the request submitted to it, but, having no legal grounds for a more detailed decision, it got off with general words. Let’s leave aside the problems of the capabilities and abilities of the Polish legal system, and state the fact that the Supreme Court of the Republic of Poland could not give an exact definition of a fair and decent salary .
What salary would be considered worthy and fair under the law?
Based on existing legal norms, it is obvious that the concepts of fairness and dignity in matters of remuneration are not defined. There are also no legislative provisions introducing any penalties for undignified and unfair wages.
Of all the relevant norms, there are only regulations establishing the amount of the minimum wage (per month or hour).
Expert opinion
Dmitry Konstantinovich
Leading expert at Polish Consultant
Accordingly, any salary above the minimum will be considered legal, and the concepts of “fair and decent” are brought to the level of subjective perception by the employee. Failure to recognize the payment as fair and worthy by anyone will have no legal consequences.