July 2022 brought changes in net payments due to tax changes – the most important being the reduction of pre-investment income tax from 17 to 12 percent. Unfortunately, the net minimum wage has not changed because it is completely tax-exempt. People with the minimum wage concluded in the contract will have to wait until 2023, when it will be increased twice. The government has already proposed rates. How much (and exactly when) will the minimum wage rise in 2023? We write about it in the article.
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On July 1, tax changes entered into force, the purpose of which is to regulate the tax system after the introduction of the Polish system. The government decided – among other things due to high inflation and problems faced by families – Reducing income tax from 17 to 12 percent. This means that many of us will soon have higher net payments. Unfortunately, this change does not apply to the minimum wage. why?
Poland is struggling with high inflation, and price hikes are particularly felt by those earning the minimum wage. Total 3010 PLN is currently the minimum wage in Poland. Hourly wage is 19.70 PLN total.
For comparison, the average salary in the first quarter of 2022 totaled 6,235.22 PLN (data from the Central Statistical Office).
If the tax changes under the Polish order do not take effect in January 2022, the employee receiving the minimum wage will net approximately PLN 2,210 under the previous rules. However, if we calculate the bonus taking into account tax changes as part of the “Polish system”, then the minimum net salary is PLN 2363.56.
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