The important changes to Labor Code will come into force on 1 January 2025. Employers will be burdened with new obligations, and many benefits for employees will increase due to an increase in the minimum wage to PLN 4,666 gross and an increase in the hourly rate for mandates to PLN 30.50 gross. It is worth emphasizing that only one increase in the minimum wage is planned for 2025.
The increase in the minimum wage from 1 January 2025 means that the minimum pay for employees will be higher by PLN 366 compared to December 2024. This will result in an increase in many other benefits that are linked to this amount. Among other things, the amount of various thresholds and indicators used in both labour law and social insurance will change. For example, night work allowances will increase. The cost that an employer incurs when hiring an employee with the minimum national remuneration will also increase.
When calculating whether an employee’s salary meets the statutory minimum, all salary components, such as bonuses, allowances or awards, are taken into account. Therefore, most salary components are taken into account when calculating the minimum wage. However, it does not include components such as:
The minimum wage of PLN 4,666 gross is the amount with mandatory deductions for the state. These include: ZUS contributions, income tax and, in some cases, PPK contributions. To calculate the net amount, i.e. what the employees will receive to their account, all these components should be subtracted from the gross amount. The rates of these deductions, such as income tax or ZUS contributions, will remain unchanged in 2025.
An example of a full-time employee’s net salary who is entitled to PLN 250 in tax deductible costs and has used the full tax reduction amount (PLN 300) is PLN 3,510.92. This amount has been calculated based on applicable tax and ZUS contributions regulations.
Read also: ZUS contribution holidays – everything you need to know about the new relief
Employees participating in PPK (Employee Capital Plans) pay 2% of their salary subject to ZUS contributions every month. At the same time, the employer adds 1.5% of the same base to these savings. Both payments go to the selected financial institution. It is worth emphasizing that the employer’s payment, although it is the employee’s income, is not subject to additional ZUS contributions. On the other hand, the employee’s payment is deducted from his salary after deducting taxes.
A minimum wage employee who has signed up for PPK will see two amounts on their payroll for January 2025:
PPK service – check how we can help, ask for an offer
An increase in the minimum wage means an increase in labour costs for employers. In addition to the gross salary, the employer bears additional burdens in the form of social insurance contributions (pension, disability, Labour Fund and FGŚP – Guaranteed Employee Benefits Fund) and accident contributions. The amount of the latter depends on the type of business. The table below presents the calculation of labour costs, a comparison for 2024 and 2025.
Cost element | Percentage rate | Minimum wage. Amount in 2024 (PLN) from July 1 to 31 December 2024 | Minimum wage. Amount in 2025 (PLN) |
Gross salary | – | 4300 | 4666 |
Social security contributions | |||
– Pension | 9.76% | 419.68 | 455.4 |
– Disability pension | 6.50% | 279.5 | 303.29 |
– Together | – | 699.18 | 758.69 |
Accident contribution | 1.67% | 71.81 | 77.92 |
Contribution to the Labour Fund | 2.45% | 105.35 | 114.32 |
Contribution to the Guaranteed Employee Benefits Fund | 0.10% | 4.3 | 4.67 |
Total contributions | – | 880.64 | 955.6 |
Total cost of work | – | 5180.64 | 5621.6 |
As can be seen from the table above, the cost of the minimum wage on the employer’s side will increase by PLN 440.96.
The amount of the night work allowance depends on the applicable minimum wage and the number of working days in a given month. The employee is entitled to 20% of the hourly rate calculated on the basis of these two factors. Due to the different number of working days in individual months, the amount of the night work allowance may change each month. Find out more and discover the amounts of the allowance in individual months of 2024 and 2025: Night work allowance – what changes?
At the beginning of 2025, there will be a change in the minimum basis for calculating ZUS contributions for new entrepreneurs. It will amount to PLN 1,399.80, which means an increase of PLN 109.80 compared to the period July-December 2024. It is worth remembering that this basis applies only to retirement pension and disability pension contributions.
Table: Minimum bases for calculating ZUS contributions for new entrepreneurs in 2024-2025
Year | Period | Minimum wage | Minimum basis for calculating ZUS contributions (30% of the minimum wage) |
2024 | January-June | 3 490 PLN | 1 047 PLN |
2024 | July-December | 4 300 PLN | 1 290 PLN |
2025 | All year round | 4 666 PLN | 1 399.80 PLN |
See also: Health contribution for entrepreneurs – the government adopted new solutions
From 2025, the minimum hourly rate for mandate contract work will be PLN 30.50. The net amount of this rate, i.e. the employee’s take-home pay, will vary depending on the age of the contractor, type of insurance and tax relief. For example, a contractor over 26 years of age who pays all ZUS contributions will receive around PLN 21 take-home pay. On the other hand, a student up to 26 years of age who does not pay contributions and uses tax relief can count on the full rate of PLN 30.50.
Read also: Payment of wages to contractors – draft amendment to regulations
In summary, the minimum wage in Poland has a direct impact on many other areas of professional and social life. It is not only the basis for calculating employee remuneration, but also a reference point for numerous benefits and entitlements.
See also: PIT 2025 settlement – what changes, deadlines, rules?
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