Poland is a thriving European economy with a dynamic labour market that attracts many expats. If you are planning to explore employment opportunities in Poland, this text offers some tips on what types of contracts there are, which factors affect your net pay, and how to calculate your salary there, including gross to net amounts.
Employment format
Before trying out any net salary calculations, it is useful to know that there are three main types of employment agreements in Poland, each with its own gross vs net salary ratio. This information is especially important to those expats who plan to send part of their income back home, to support their families or as savings. If that is your case, try Profee for the mosr favourable rates and benefits. By the way, we offer BLIK for transfers from Poland.
Standard employment agreement (Umowа o pracę). This type of contract obliges the employer to pay a salary at least once a month and settle all mandatory social contributions. In turn, it entitles the employee to various social benefits (paid holidays, sick leave, overtime pay, etc.) Its duration can be indefinite, a fixed period, or a probation period of 3 months.
Commission agreement (Umowa zlecenie). Under this arrangement, the contractor performs some specific duties on behalf of the employer, and the remuneration is paid after their completion. Unless stated in the contract, the employer covers only some social contributions, and the contractor has access to a limited set of social benefits such as public health insurance.
Subcontractor agreement (Umowa o dzieło) is signed with a specific task in mind and remunerated after the completion of that task. No social contributions are made, and the subcontractor enjoys no social benefits.
If you do not have sufficient knowledge of Polish but, naturally, want to know your gross to net salary and other conditions before you sign up, then your potential employer is legally obliged to provide you with a contract copy in a language that you understand.
Gross vs net salary
Jobseekers in Poland might come across such terms as gross vs net salary. It is crucial to understand the difference between the two to know how to calculate your salary properly.
Gross salary is the remuneration amount before the deduction of all mandatory taxes and contributions. It is the one usually indicated in vacancy ads and employment contracts. It includes employee’s wages, bonuses, allowances, overtime pay, and so on.
Net salary is the remuneration you actually earn, that is, the amount paid to you after all taxes and contributions have been deducted.
How to calculate your salary when considering a job offer in Poland? Here is a simple Polish salary calculator formula:
Salary net = gross amount - social security contributions - healthcare insurance - personal income tax
For example, standard employment agreements provide employees with the highest social protection, which means high social contributions. Hence, the gross to net difference is the largest compared to other employment arrangements.
Social security contributions
Mandatory social security contributions are shared between the employee and the employer and comprise several categories presented in the table below.
Net salary calculator: social security contributions
| Type of contribution | Employee share | Employer share | Total |
|---|---|---|---|
| Pension & disability | 11.26% | 16.26% | 27.52%* |
| Sickness | 2.45% | – | 2.45% |
| Accident | – | 1.67% | 1.67% ** |
| Labour fund | - | 2.45% | 2.45% |
| Total | 13.71% | 20.38% |
- For 2024, capped at 234,720 zloty. ** The rate varies depending on the size of the employer company.
Social contributions amount to roughly 33%. So, if you are trying to figure out how to calculate your salary quickly, reduce your gross salary by a third to get the approximate net pay.
Health insurance
In addition to social security contributions, an employee must pay for health insurance, which is 9%.
Personal income tax
All income received by an individual working in Poland is subject to taxation, which affects how you calculate your salary. A sliding scale applies, and the rate depends on the size of annual income.
As of 1 June 2024, the minimum wage in Poland is 4,300 zloty (about 990 euro) per month or 28.10 zloty per hour. If you are starting at an entry-level job and especially if you need to also support your loved ones back home, make sure your right to minimum pay is secured. Also, have a look at some practical budget tips and use Profee for your international money transfers to save time and money.
Net salary calculator: personal income tax
| Income bracket, zloty | Income tax, zloty |
|---|---|
| 0 – 30,000 | 0 |
| 30,000 – 120,000 | 12% - 3,600 |
| 120,000 and above | 10,800 + 32% of excess over 120,000 |
The PIT for the year is paid in advance through monthly deductions from the employee’s salary. Keep in mind that to be officially employed and pay taxes, an individual, including foreigners, must obtain a 10-digit taxpayer’s identification number (NIP – Numer Identyfikacji Podatkowej); in some cases, foreign residents can use their PESEL identification number for the purpose instead.
Polish salary calculator
There are dozens of online net salary calculators for Poland, for example these for standard employment, commissions, and subcontractors. IT enthusiasts can explore a Polish salary calculator on GitHub. There is even a dedicated namesake app available for download. And once you know how to calculate your salary in Poland and have estimated the amount you can send to your family back home, go to our website or get the Profee app. Take advantage of the most favourable exchange rates on the market, enjoy the many benefits of the service, and even earn money through its referral programme – all with Profee!
