Poland is set to see a double shift in its minimum salary in 2023. According to the Regulation of the Council of Ministers reports of September 13, 2022, the minimum remuneration will be changed twice – first on January 1 and then on July 1, 2023.
From these reports, the first increase will have the minimum hourly rate at PLN 22.80 with PLN 3,490 as the minimum wage. Then the raise in the year’s second half will have the hourly rate at PLN 23.50 and minimum wage at PLN 3,600.
With these significant looming changes, the hundreds of thousands of Polish entrepreneurs will need to be ready for the equivalent increase in social security contributions (ZUS contributions) in 2023.
Interestingly, there are other facets of economic obligations to consider, like: How much will the preferential (reduced) ZUS contributions of entrepreneurs be in 2023? Or how much will the minimum gross and net salary be in 2023?
Stay with us, as this article will discuss these concerns and answer the questions.
How do I calculate the net minimum wage in 2023?
You can calculate the minimum net wage, also known as the salary on hand, by considering the extra costs an employee may incur with the monthly salary.
So the gross salary includes net remuneration + pension insurance + disability insurance + sickness insurance + health insurance + PIT advance payment.
What are the minimum wage contributions deducted from the employee?
From the two scheduled increments in the minimum wage in 2023, let’s see what the cost of these contributions will be in the two halves of the year
For the increment in the first half of 2023 with the minimum wage at PLN 3,490, the contributions will be as follows:
- pension - PLN 204.37,
- disability pension - PLN 83.76,
- sickness - PLN 25.65,
- accident - PLN 17.48.
And for the increment in the second half of 2023 with the minimum wage at PLN 3, 600, the contributions will be:
- pension - PLN 210.82,
- disability pension - PLN 86.40,
- sickness - PLN 26.46,
- accident - PLN 18.04.
From these numbers, the total social security contributions, including additional sickness premium, is PLN 331.27 after the first half raise of 2023 and PLN 341.71 after the second half increase of 2023.
So, from January to June 2023, the net minimum wage will be PLN 2,709. And, from July till the end of 2023, it will be PLN 2,784.
While it will seem like the increase is a significant progressive step, it’s evident after examining the contributory system in Poland that the amount you have to pay for contributions depends directly on your salary. So the more money you make, the more premiums you pay.
What are the changes in the minimum wage and ZUS contributions of entrepreneurs in 2023?
For a change of this magnitude, there will be financial implications for every party – employees and employers.
Small businesses will also have to pay higher ZUS contributions because, according to the law, the ZUS for social security is an X amount not less than 30% of the minimum wage.
This translates to a simple line of thought – the more the minimum wage, the higher the social security contributions. So by the first half of 2023, the preferential ZUS contribution will be PLN 1,047; in the second half of the year, it will increase to PLN 1,080.
Entrepreneurs with preferential ZUS paid PLN 285.71 per month in 2022. But by the first half of 2023, it will become PLN 331.26 monthly and PLN 341.71 in the second half of 2023, which is approximately a PLN 609.33 increase.
What are the health premium changes in 2023?
In addition to the social contributions, entrepreneurs will now have to pay the extra health insurance come 2023. With the two increases in the minimum wage in Poland, health insurance will increase consequently.
The year’s first half will be placed at PLN 314.10 and PLN 324 by the year’s second half.
This amount is based on corporate taxation for estimating Poland’s health insurance premium value.
The health insurance contribution for established businesses is calculated based on the average salary of the fourth quarter of the previous year. That means this amount will be calculated only after the end of 2022.
How much are the preferential ZUS contributions for entrepreneurs in 2023?
The preferential ZUS contributions for entrepreneurs have been active for years to cushion the burden of high costs at the beginning of the business, especially when the revenues are not much.
At this stage, their contribution is based on 30% of the minimum wage, instead of 60 percent.
However, depending on the type of business these entrepreneurs run, it’s essential that they understand the need for pension, disability, accident, and health insurance coverage. But then health insurance is also entirely optional at this stage.
Which entrepreneurs can apply preferential ZUS contributions?
According to the Act on the Social Insurance System, any sole proprietor is eligible for preferential ZUS rates for the first 24 months.
So, for new entrepreneurs, this is a significant advantage because of the reduction in social security contributions and the omission of the Labor Fund contributions.
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