Poland Expenses – Gross vs Net Salary
Updated: Dec 13, 2024
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Poland Expenses – Gross vs Net Salary
Rent Example in December 2024 Advertisement:
Fully furnished with a single bedroom, private bathroom, private kitchen, one large drawing room with a big sofa that also can be used as a bed, large balcony with a nice view. If anyone is interested, please message me directly. The rental price is approximately 3300 PLN including everything. The total area is 50.6 square meters.
Here, I am giving expense samples for a Family of 4 members.
Husband, Wife and two children.
SNO | Expenses | Cost (PLN) | Remarks |
1 | Rent for Family | 4500 | 50 to 60 sqm Including Administrative Fee+gas |
2 | Internet | 80 | Home Wi-Fi UPC with 1000 Mbps |
Mobile | 20 to 40 PLN | Lyca 20 PLN Plans will startOrange Flex 35 PLN Plans startPlay with UPC 80 PLN for 2 years contract | |
3 | Groceries | 3000 | For four members |
4 | commute | 90*3=270 | Post PIT 37, Tram cum Bus monthly Card is 90 PLN For Children 35 PLN, for School Students Free till 14 years of ageStudents above 14 years old have 90 PLN from day one. |
7,910 PLN | |||
1 | School Fee | 2600 | |
2300 | |||
12*2300+4000 Security Deposit + 2000 Admission Fee | |||
2 | Bachelor's College Fee | 1700 | 10,000 PLN (2300 EUR) per Semester for Bachelors in Computer Science. |
In Poland, all Schools in September Classes will start, but admission should be taken before classes.
School Tuition Fees are different for each school. Highest 5000 PLN per month. Lowest 2300 PLN Per month.
University fees are also the same. It differs from each course. I only gave Computer Science at AGH University, Krakow.
Rent: Rent + administrative fee + electricity + GAS = approximately 4500 PLN, as I calculated. Sometimes, it will be more.
Home Broadband: UPC, now it’s Play. The 1000 Mbps speed of broadband is 80 PLN. Again, the monthly charges will be reduced if you reduce the speed and have any combo offers or two-year or one-year contracts.
Groceries: I calculated for Vegetarians and Rice consumers.
Gross vs Net Salary Calculation:
Personal income tax rates
General PIT rules provide for the rates shown in the following table:
Annual taxable income (PLN) | Tax rate | |
Over | Not over | |
0 | 120,000 | 12% of the base less the amount decreasing tax (PLN 3,600)* |
120,000 |
| PLN 10,800 + 32% excess over PLN 120,000 |
* In the case of income up to PLN 120,000, the tax is 12% minus the amount decreasing tax, which is PLN 3,600 (i.e. 12% of PLN 30,000, which is the tax-free amount of income).
The tax-free amount is set at PLN 30,000. This means that taxpayers earning less than PLN 30,000 per year will be exempt from paying tax.
In the case of income exceeding PLN 120,000, the tax is PLN 10,800 + 32% of the excess over PLN 120,000. The decreasing tax amount is already included in the above sum of PLN 10,800.
Tax Calculator:
Approximately Gross vs Net Salary calculation: These depends on various factors will change.
Monthly Gross | Monthly Net |
10,000 | 7147 |
20,000 | 14011 |
25,000 | 17547 |
30,000 | 20498 |
Tax Calculation: Join Declaration with Housewife.
CopyRight Tax or Creative Work Tax – Not included.
The Polish Personal Income Tax Act allows for special tax-deductible rates for authors of copyrighted works. If they receive a remuneration for the transfer of the copyright, they may apply tax-deductible costs in the amount of 50% of a portion of earned income.
Why 50%? The lawmakers assumed that the author must spend at least 50% of their earnings to create a copyrighted work and that authors should not be forced to collect all the invoices and receipts to prove that they paid for materials and services needed to create the copyrighted work.
These tax-deductible costs, in the amount of 50% of a portion of earned income, are not included in the calculation above because some companies do not offer this feature.
In addition to salary, the following benefits are available to IT employees in Poland: Every IT employee has to check with their employer during HR salary discussions about which benefits are enabled and which are not.
1. Creative work – We can get 500 to 1000 PLN. Based on the work and its percentage.
2. Tax reduction: 26 years below No Income Tax. They have to file PIT-0.
3. Income Tax joint declaration:
Calculation Method: When filing jointly, the total income of both spouses is summed and then divided by two to apply the tax rates. This often results in a lower effective tax rate compared to filing separately.
If the dependent (wife) isn’t working, is there any provision that a husband's salary won’t be taxed above 12%?
Answer: You can make a joint declaration, and then up to 2.40 Lakh, the tax will be 12%
Husband gets taxed at 12% rate until 120000 PLN limit (gross - ZUS contribution)
If the wife isn't working and you declare this to the employer, this limit doubles, and the husband will be taxed at a 12% rate until 240000 PLN.
In 2024, if both spouses in a joint declaration in Poland earn a gross income of PLN 30,000 per month, the tax implications are as follows:
Summary: 30,000+30,000=60,000*12=PLN 7,20,000=Total Gross Income (Joint)
Combined Tax-Free Amount: PLN 60,000
Taxable Income: PLN 6,60,000
Total Tax Due: PLN 1,83,600
Which is 25.5% Taxation for Joint declaration.
4. For each Child, 800 PLN every month will be credited until they are 18 years old.
5. Almost every company will pay one month's salary as a Bonus, which they call the 13th month's salary. Not all companies pay as one month. It will vary.
6. Every year, 26 Paid leaves. You must take all of them. This is one of your KPIs. It depends on your experience.
Annual vacation entitlement:
20 days - if the employee has been working for less than 10 years altogether
26 days - if the employee has been working for at least 10 years (university studies are counted as 8 years of work for the calculation of vacation entitlement)
in the case of the first job - during the first year of employment, 1,67 days after each month
One additional holiday day is available for employees with seniority above 25 years.
Ten additional vacation days for disabled employees.
7. For work from home (WFH), Govt pays around 50 PLN monthly for electricity.
8. Companies are giving a Monitor and one Chair to every employee. Not all companies give monitors or chairs.
9. MultiSport card: This sports card costs 50 PLN every month. The company will pay employees as part of the Social Security fund. It’s optional. We can opt for it or get the money in our wallet.
10. Cinema City Card: This is also an optional card with 53 PLN. Not all companies have this option.
11. Recently, PM ModiJi signed an MOU with Poland Govt. In the near future, we will send all our ZUS (Social Security Fund) back to India PF. Still, it is under process.
12. PPK: We will get back this amount as well with a 1.5% Company contribution.
Very informative and useful article. Keep it up..
Amazing blog. Very well written article with a lot of useful information. This will help a lot of people. Some info can be added via links like how to get benefits for child (800), any other, and more detailed page on PPK etc.. Thanks Satya !
thank you