Mainly, there is talk of tax changes brought about by the Polish Order program, but this year there are also regulations that will shorten illegal work, and changes that will make it difficult for some to use L4.
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Tax changes in the Polish Lada, an increase in the minimum wage or new provisions on parental leave. This year we will face significant changes for our employees.
Increase in the minimum wage
The minimum wage in 2022 will be PLN 3010 gross (an increase by PLN 210), and the hourly rate will be PLN 19.70 (an increase by PLN 1.40). The Polish Order, in turn, assumes that those earning the lowest national income will not pay income tax. The health contribution will be calculated differently than before, which also applies to people earning the lowest national income. The sum of the ZUS contributions and the health contribution is PLN 646.44. This means that the minimum net salary will be PLN 2,363.56, and the hourly wage will be PLN 13.91 net.
What else is affected by the increase in the minimum wage? There will also be an increase in several benefits received by employees calculated on the basis of the “minimum” and budget revenues, for example, from fines for fiscal offenses. If the minimum wage increases, the following will also increase:
- allowance for night work,
- remuneration for standby time and downtime,
- severance pay for collective redundancies, the amount of which may not exceed 15 times the minimum wage,
- compensation for violation of the principle of equal treatment in employment, mobbing or discrimination – the amount of compensation may not be lower than the minimum wage,
- the minimum calculation basis for sickness allowance,
- the amount is free from bailiff’s deductions (this does not apply, however, to maintenance debtors),
- cash benefit for an apprentice,
- the minimum wage also affects the basis of ZUS contributions in the case of certain groups of insured persons – piecework contractors, clergy and novice entrepreneurs will feel the change,
- the minimum wage also affects the amount of the fine for minor offenses and tax offenses, the amount of the fine for the lack of civil liability or, for example, fees for the entrance examination for legal apprenticeship.
Tax changes in the Polish Lada
As we have already informed above, there will be no minimum wage PIT – the tax will be paid only on the first zloty earned over PLN 3.2 thousand. PLN monthly earnings. In addition, the Polish Order for employees means, inter alia, increasing the amount free from personal income tax to PLN 30,000 PLN, an increase to 120 thousand. PLN of the amount above which the personal income tax rate of 32% will apply. and the introduction of the so-called allowances for the middle class.
Changes to L4 and Benefits
Until now, the length of the allowance period for one disease was 182 days and that was how long you could take paid L4 during the year. The changes provide for counting periods of inability to work to one benefit period (and not for each sickness separately). It will include both periods of uninterrupted incapacity for work as well as periods of incapacity for work that occurred before or after the break, if the break is not longer than 60 days and if the incapacity does not occur during pregnancy. Another of the changes from January 1, 2022 is the higher sickness benefit for the period of stay in the hospital. The change will be significant, because instead of 70 percent. on the basis of the allowance assessment, the monthly allowance will be 80%. Another change is the shorter period of sickness benefit after termination of employment. Until now, a person who fell ill within 14 days of termination of employment could count on a six-month sickness allowance (182 days). The amendment to the act assumes that this time is to be reduced by half – to 91 days.
Cutting down on illegal work
The new regulations are also to shorten the so-called payment of wages under the table. From January 1, 2022, the consequences of such actions will be borne solely by the employer. So far, if the National Labor Inspectorate discovered the procedure of paying under the table or if the employee himself filed a lawsuit to establish the existence of an employment relationship, he himself had to pay overdue contributions and taxes with interest – even for five years back. The Polish Law shifts all tax liability for illegal employment from the employee to the employer. It is the employer who will be obliged to pay the payroll tax and all contributions (ZUS and health insurance) unpaid by the “illegally” employed employee. However, he will not be allowed to charge them for costs. He will also be credited with additional income in the amount of the minimum wage for each month of illegal employment. The employee, on the other hand, will not pay taxes, contributions and will gain access to healthcare.
The government also wants to encourage Poles to return to Poland. Employees who have lived abroad for at least three years and will return to Poland will be able to benefit from tax exemption for income up to PLN 85,528 for the next four years.
Changes in parental leave
By August 2022, Poland must implement the EU work-life balance directive, which provides for, inter alia, new rules on parental leave. It provides parents with the right to four months’ leave, shared equally, without the right to transfer. In Polish regulations, this means that fathers will receive two months of leave. It can be used until the child is 8 years old. Also on the basis of the work-life balance directive, the period of the so-called child care. Currently, parents are entitled to two days (or 16 hours) of medical leave. The directive extends this period to five days and extends the circle of people who can benefit from it to other members of the household.