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Polish salary #1 (yearly)
The take-home salary calculator for Poland. It takes your gross income and calculates all your take-home (netto) earnings month by month. It also displays all parts of salary: polish national insurance (ZUS), income taxes and other costs of working as an employee in Poland.
Calculating the take-home earnings in Poland
The rules of calculating net earnings, taxes, insurance etc. in Poland are quite complex. There is a huge number of documents you should read to really understand the law base for whole process. The document for good start is "The personal income taxation act"
(polish: "ustawa o podatku dochodowym od osób fizycznych").
General rules are:
- Zloty or PLN
This calculator uses polish national currency for all computations - Zloty.
- Gross Salary (brutto)
You make an agreement between you and your employer. In this agreement the employer declares to pay the employee a gross salary (in Poland called "brutto"). Typically in Poland the gross salary is specified in monthly basis.
The gross salary is a base number for all calculations. For example if your bank is asking you "how much you earn" to assess your mortgage/loan max amount, then the bank asks for your "gross earnings".
- Net Salary (netto)
The taxes and insurance-system contributions are taken from your gross salary automatically by your employer. Then the employer will pay you remaining cash: it's your net salary (in Poland called "netto") - and it simply means "cash on hand" or "cash you take home".
- Employer contributions
The insurance-system contributions taken from employee's gross salary is not all. There is also some amount of insurance the employer pays on top of gross salary.
If you're employee (worker) - you don't have to worry about it, because you don't even see it.
If you're the employer (bussiness) - your overal cost of employment is the Gross Salary plus employer's insurance contributions (so, a lot more than the gross salary itself).
This calculator displays all parts of the salary (brutto, netto and employer's contributions).
What is the meaning of each calculator field ?
Quick take-home estimation
If you want just quickly estimate your net salary, skip all the detailed settings and just type your gross salary into Gross Salary input window
If you have more time and want to give more details, try to fill all the input fields:
- Year of work - select the year of the employment.
Every year is slightly different. The employment taxation rules are little bit changing from time to time. Most of the time the changes are just minor adjustments to rates (numbers, factors). When you select the year of the employment here, the calculator will use the rules and rates for particular year.
This calculator supports all years from 2007 to 2015 and we will probably update it every year to follow current changes.
- Employment contract type - depending on needs, there is one of the following types of contract signed:
- employment contract (PL: umowa o pracę)
- contract to perform a specific task (PL: umowa o dzieło)
- job order contract (PL: umowa zlecenie)
- Joint declaration for married couple - check it when you've decided to have a joint declaration (it's not mandatory).
Important: if only one of partners works (the other one has no income), then the results displayed here will be perfectly correct. But if both partners work, then the net salary displayed by this calculator will be not fully accurate (the real net salary will be slightly lower than displayed here). This calculator is not able to correctly compute net salary for two working partners.
- Extended tax deductible costs (employment contract only) - check, if you travel to work from another town (ask you accountant for details)
- Deductible cost (non-employment contract only) - in most cases select 20%. For some selling of copyrights, selling the right to patents/innovations etc. check 50%. Consult some polish accountant before going for 50% here.
- How insurance (ZUS) is being paid (job order contract only) - in some cases of job order contract, you don't have to pay ZUS and health contributions. For example, if this is your 2nd work and you work for another employer and he's paying you at least full minimum wage, you don't have to pay contributions for this job order contract.
This calculator understands 3 specific cases:
- this job is the primary way of paying ZUS - check, if you think you are not exempt from paying ZUS/health contributions. If you're not a student and you have no other employer paying your ZUS contributions, you probably have to check this one.
- some other employer is paying the ZUS insurance - check, if you work in another job and you have your ZUS/health contributions paid there in the ammount as for at least minimal polish salary.
You can definitely check that, if you work somewhere else with full-time employment.
If this is checked, you pay only health part of insurance (called NFZ) and you are exempt from other ZUS contributions.
- student at age below or equal to 26 - if you are student below or at age 26, then you don't have to pay ZUS contributions and no health contributions.
- Optional sickness insurance (ZUS based) - check it, if you WANT to pay sickness insurance (it's not mandatory).
- Accident insurance (ZUS) - this is paid by your employer (so it doesn't influence your gross-net salary), if:
This contribution is calculated as percent of gross salary. The percentage rate depends on following rules:
- you work on employment contract
- or you work on any other type of contract, but when working you physically do it on site of the company you're working for
- for small company, employing no more than 9 workers (<=9) - the rate is flat for all workers. It equals to 50% of max rate for this particular year. Max rate is taken from table specifing rates for each industry type published by government agencies.
This rate is/was :
- from 01.01.2003 to 31.03.2006 - 1,93%
- 01.04.2006 - 31.03.2009 - 1,80%
- 01.04.2009 - 31.03.2012 - 1,67%
- 01.04.2012 - 31.03.2015 - 1,93%
- from 01.04.2015 - 1,80%
- for company larger than 9 workers (>=10) - the rate is specified separately for each employee - depending on type of work he is doing. The rate may be in range of 0.67% to almost 4% and it is changing over time (usually each few months).
- Gross earnings (brutto) - the most important number for your salary ! You can type your gross earning for each month separately - if this differs over a year for any reason (for example if you got a raise in June). If you have same salary through whole year, simply type it in a input window called "Gross monthly earnings (same for all months)".
How to calculate the earning and taxes with this calculator ?
To calculate net earnings (take-home earnings), taxes and other salary components, you have to include huge number of factors (type of work agreement, costs of generating income, the insurance participation and a lot more). This calculator takes major factors for consideration, but it ignores a lot of minor things specified by employment and taxes law.
In most cases the numbers computed by this calculator will be perfectly accurate. But you should understand that in more advanced cases (for example having additional tax reliefs or specific family situation) the results may be only estimation and details may change your take-home earnings slightly.
For detailed estimation of your earnings - ask your accountant or employer (or contact us directly).
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