How to calculate payroll tax in Poland (gross and net)

To calculate an employee's salary in Poland, you need to understand three things: how much you pay gross, how much they receive in cash (net), and what taxes and contributions you are required to transfer to the Social Insurance Fund and the tax office. The employer always pays more than stated in the contract, while the employee receives less. The difference is social security contributions, income tax, health insurance, and other mandatory deductions. This article provides a precise calculation formula, an example with figures, and an explanation of what affects the final amount.

Polish Salary Calculator: Gross and Net Salaries in a Few Clicks

What does a salary in Poland consist of: gross, net, and deductions?

In Poland, there are two main concepts: gross salary (before taxes) and net salary (what the employee receives in hand).

For example, if you pay an employee 7,000 zł gross, that doesn't mean they'll receive that amount on their card. After taxes and contributions, their net salary could be around 5,000 zł, and your total expenses could be around 8,400 zł.

The main mandatory deductions from wages in Poland are:

  • social contributions (ZUS)
  • health insurance
  • income tax (PIT)

These amounts are calculated at specific rates and depend on the type of contract, the employee's age and benefits.

Gross and net salary: what's the difference?

Gross salary is the amount specified in the contract. It is the basis on which all taxes on wages in Poland are calculated.

Net salary is what an employee receives after deductions. The difference between the two is:

  • payroll tax
  • contributions to ZUS
  • health insurance

A simple way to quickly calculate: use a salary calculator in Poland. For example, wynagrodzenia.pl shows both the net salary and the cost to the employer.

What taxes and contributions are withheld from salaries?

When calculating your salary, consider three types of mandatory payments:

1. Social contributions (ZUS)

The employee pays:

  • pension - 9,76%
  • disability - 1.5%
  • disease - 2,45%

The employer additionally pays:

  • pension - 9,76%
  • disability - 6.5%
  • Accident insurance - 1,67% (on average)
  • Labor Fund - 2,45%
  • FGShP - 0.1%

2. Medical insurance

9% from the base (after social contributions)
Does not reduce taxes - the deduction has been cancelled since 2022.

3. Income Tax (PIT)

  • basic rate — 12% (up to 120,000 PLN per year)
  • progressive scale: from 120,000 zł per year - 32%
  • There is a tax-free minimum of 30,000 zł per year (2,500 zł per month)

The tax is calculated after deducting ZUS and health insurance.

Salary calculation example: how much an employee earns and how much the employer pays

Let's say you sign a contract with an employee for 7,000 zł gross. What happens next?

Indicator Amount (approximately)
Gross salary 7,000 zł
Social contributions (withheld) — 960 zł
Medical insurance — 546 zł
Income tax — 493 zł
Net salary (in hand) 5,001 zł
Additional contributions from the employer + 1,400 zł
Full cost to the employer 8,400 zł

If you pay an employee PLN 7,000 gross, your actual costs are 20% higher.

How to calculate salary step by step

Step 1: Withhold social security contributions

Pension, disability and insurance contributions are deducted from the gross salary - approximately 13,71%.

Step 2: Maintain your health insurance

9% from the base (after ZUS), fully paid by the employee.

Step 3: Calculate your income tax

The tax is deducted from the remaining amount taking into account:

  • non-taxable minimum of 2,500 zł/month
  • tax rebate of 300 zł/month
  • progressive scale (if the limit of 120,000 zł per year is exceeded)

Step 4: Add employer contributions

Add approximately 20% to the gross amount – these are the company’s mandatory ZUS payments.

Benefits and calculation features for certain groups

Employees under 26 years of age

Exempt from income tax
They receive more in their take-home pay – the difference can be up to 1,000 zł per month

B2B contracts and zlecenie

B2B: The employee works as an entrepreneur (pays all fees)
Zlecenie: flexible contract, lower deductions possible
Important: The tax on wages depends on the type of contract.

What mistakes do employers make when calculating salaries?

Error 1: Calculating only gross wages

The employer looks at the gross amount and doesn't take into account contributions—the result: underpayment of social security contributions, and a possible fine.

Error 2: Tax deduction applied incorrectly

The benefit for young people was not applied, the non-taxable minimum was not taken into account - a net loss of up to 3,600 zł per year.

Mistake 3: B2B is registered, but the employee actually works under ETA

Risk of contract reclassification, additional tax assessment, fines.

How to simplify payroll calculations

If you're not an accountant, the easiest way to calculate wages in Poland is to use a salary calculator—for example:

  • Wynagrodzenia.pl
  • Infor.pl

For companies with several employees, it's best to engage an accountant or outsource payroll. This is especially important for Ukrainians opening a business in Poland: local regulations change frequently, and mistakes can be costly.

When is a tax return required?

The employee submits a tax return (PIT-37) at the end of the year:

  • if there was additional income
  • if there is a right to tax deductions
  • if you want to get back the overpaid tax

The employer generates PIT-11, on the basis of which the employee can submit a declaration.

Polish Salary Calculator: Gross and Net Salaries in a Few Clicks

Conclusion

Calculating salaries in Poland requires precision: you must understand the employee's actual salary, what taxes are withheld from salaries in Poland, and what mandatory social contributions must be paid. Calculation errors can result in fines from the Social Insurance Fund or the tax authorities.

If you're looking for a simple way to calculate salaries, start with an online calculator. And if you have several employees, delegate the calculations to specialists.

If you need to calculate salaries in Poland for Ukrainians, start a business, or understand the payroll tax system, we can help. Contact us – we'll provide a simple and to-the-point answer.

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