July 2022 brought changes in net payments due to tax changes – the most important of which is a reduction in PIT tax from 17 to 12 percent. Unfortunately, the net minimum wage has not changed as it is fully tax-free. People who have the minimum wage entered on the contract must wait until 2023, when it will be increased twice. The government has already proposed rates. By how much (and when exactly) will the minimum wage increase in 2023? We write about it in the article.
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On July 1, tax changes entered into force, the intention of which is to organize the tax system after the introduction of the Polish Order. The government – among others due to high inflation and troubles faced by households – decided lower the PIT tax from 17 to 12 percent. This means that many of us will have higher net payouts soon. Unfortunately, this change does not apply to the minimum wage. Why?
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Poland is struggling with high inflation, and the rise in prices is particularly felt by those on the minimum wage. PLN 3010 gross is currently the minimum wage in Poland. The hourly wage is 19.70 PLN gross.
For comparison, the average salary in Q1 2022 was PLN 6,235.22 gross (data from the Central Statistical Office).
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If the tax changes under the Polish Order did not come into force in January 2022, an employee receiving the minimum wage would receive approximately PLN 2,210 net under the previous rules. However, if we calculate the remuneration taking into account tax changes as part of the “Polish Order”, the minimum net salary is PLN 2,363.56.
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