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As of July 2022, changes to taxes will take effect. PIT will be reduced from 17 to 12 percent. This means that many Poles will be able to count on higher salaries this month. Unfortunately, the net increase will not apply to those receiving the minimum wage. On the other hand, an increase (and a doubling) of the minimum wage is set up in 2023. How much should an employer pay a person receiving the minimum wage in 2022? What will the rates be next year? We write about it in the article.
Contents
As of July, other tax changes prepared by PiS went into effect. One of the most important of these factors is to reduce the profit and loss rate from 17 to 12 percent. This will entail a net gain for many people. However, this situation will not apply to employees receiving minimum wages. 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. This amount will not change after tax changes are introduced in July 2022 (income tax cut from 17 to 12 percent). reason? The minimum wage will not change as it is fully covered by the exempt amount.
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