Poles will earn more money in 2017

2017 will see some important changes with regard to the job market. Most notably, the minimum salary will be increased from 1850 PLN to 2000 PLN (pre-tax). The wages in Poland have been going up for several years, but an increase in the amount of 150 PLN is pretty significant. According to the prognoses, Poland will enjoy one of the highest rates of salary growth in the EU.

Moreover, this year the government passed a bill introducing an hourly minimum wage that will accompany the minimum monthly salary. This means the people employed for a short period of time will be guaranteed minimum remuneration. The aim of the government officials is to flatten the differences between various types of employment contracts. Short-term employment contracts are advantageous for the employers because of low fiscal obligations connected with them. For the employees, on the other hand, they mean less security.

The minimum hourly wage will be linked with the amount of the minimum monthly salary of those employed on contracts for a specified time or for unspecified time. If one goes up, so does the other. Critics of this solution argue that many small companies may not additional payroll costs. The reform will lead to an increase in illegal employment, they say.

But there is also good news for the employers. From next year, maintaining an Employee Benefit Fund will be mandatory for companies hiring 50 or more members of staff, not 20, as it is today.

Remuneration goes up, but so does the employment figures. Unemployment in Poland has not been this low for a long time. The official unemployment rate is currently slightly more than 8%. Polish enterprises are having more and more problems with personnel recruitment, as skilled professionals become harder and harder to find and attract. Good salary is a must, but a prospective employee will also pay attention to the job perks.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.