I. Changes which entered into force on 1 January 2022

1. Increase in minimum remuneration for work

As of 2022, the minimum monthly remuneration for work has been increased up to PLN 3,010 gross. This means a raise by PLN 210 gross. The minimum hourly rate is PLN 19.70 gross.

It should be highlighted that an increase in the minimum remuneration for work will increase the amount of a number of employee benefits, including in particular:

• minimum downtime pay,
• extra pay for night work,
• compensation for breaching the rule of equal treatment in employment,
• maximum severance pay for terminating employment relationship due to reasons not related to the employee,
• remuneration amounts free of any deductions.

2. Tax changes

In accordance with the so-called Polish Deal, the minimum remuneration for work is not subject to income tax.

The tax-free amount has been increased up to PLN 30,000 and the amount of remuneration has been increased to PLN 120,000, above which the personal income tax rate of 32% will be applied. Also, the so-called middle class allowance has been introduced in order to lower the tax base.

3. Change of rules for calculating health insurance contribution

It will no longer be possible to deduct the contribution from the tax. Employees will not deduct 7.75% counted from the contribution assessment base.

4. New benefit periods

A new manner of calculating the so-called benefit period, i.e. a period during which the employee is entitled to a sick pay, has been introduced. In accordance with new regulations, a benefit period includes all periods of preceding inabilities to work, regardless of the type of disease classification, if the interval between the end of the preceding inability to work and the occurrence of another inability to work does not exceed 60 days.

5. New rules of settlements for a company car for private purposes

As of 2022, a lump-sum for the value of a free-of-charge benefit to which an employee is entitled due to using a company car for private purposes, for cars with an engine power of up to 60 kW (approx. 80 HP) will be PLN 250. This rate is also provided for electric and hydrogen powered cars. In the case of other cars, the value of a
free-of-charge benefit to which an employee is entitled for using a company car for private purposes will be PLN 400. Thus, in accordance with the changes, a lump-sum rate will depend on an engine power and the fact whether it is an electric or hydrogen powered car or not. The change will affect those who drive cars with a smaller capacity, i.e. the majority of people using company cars.

II. Changes which will take place during 2022

1. Implementation of work-life balance directive

By August 2022, Poland has to implement the work-life balance directive which assumes i.a. changes in the scope of parental leave. The directive provides for granting parents the rights to up to 4 months of parental leave, divided equally without the right to transfer the leave to the other parent. Fathers will receive a two-month leave. The parental leave can be used up to 8 years of age of a child.

After implementing the directive, the period of the so-called childcare will be extended. Currently, parents are entitled to two days (or 16 hours) of childcare. This period is to be extended up to 5 days, and the circle of people who can benefit from this right is also to be expanded.

2. Protection of whistle-blowers

Due to the necessity to implement the EU directive on whistle-blowers, employers who employ at least 50 employees will be obliged to determine regulations for internal reports specifying an internal procedure of reporting law breaches and taking follow-up actions. The regulations will have to be agreed with employees’ representatives or labour unions. Moreover, employers will also be obliged to keep a register of internal reports.

By: Dorota Dąbrowska-Kobus, attorney-at-law