1 The amount of the minimum wage in 2023:
- from 1 January 2023 to 30 June 2023: PLN 3,490.00 gross;
- from 1 July 2023 to 31 December 2023: PLN 3,600.00 gross
The minimum hourly wage in 2023:
- from 1 January 2023 to 30 June 2023: PLN 22.80 gross;
- from 1 July 2023 to 31 December 2023: PLN 23.50 gross
2 Tax-free amount (includes income taxed according to the tax scale) is PLN 30,000.
3 The limiting amount of the annual basis for pension insurance contributions is PLN 208,050.
4 The rate for calculating the leave equivalent in 2023 is 20,83.
5 Daily subsistence allowance for domestic business travel – PLN 45.
6 The daily subsistence allowance for foreign travel (and the limit for overnight stay in each country) is determined by a special detailed addendum to the ministerial decree.
7 The tax scale has remained the same in 2023, as follows:
- If tax base does not exceed PLN 120 000: 12% minus the tax-reducing amount of PLN 3600
- If tax base exceeds PLN 120 000: PLN 10.800 + 32% of the excess over PLN 120.000
8 Changes in PIT-2
As of 1 January 2023, there are new rules are in effect for the application of the tax-free amount for the collection of the advance payments by the payers, as well as for the submission of the statements and claims by the taxpayers (employees/contractors).
The new PIT-2 form, updated for 2023, allows one to:
- authorise a payer (e.g. an employer or principal) to apply a monthly tax-reducing amount;
- divide the monthly tax-reducing amount among several payers,
- declare one’s intent to settle tax together with one’s spouse or as a single parent;
- apply for application of increased deductible costs (possible for employees commuting from a different location);
- apply for a return relief, a tax relief for families of 4+ or a tax relief for working seniors;
- request not to apply the youth relief;
- request not to apply employee deductible costs;
- apply for no advance tax payments (possible in case of those with expected annual income not exceeding PLN 30,000).
9. Changes in Employee Capital Plans (PPK)
In 2023, employers will have to contribute to the PPK again for those employees who previously opted out of contributing. This is because 2023 marks the first automatic enrollment to PPK. The employer will therefore have to inform employees who previously submitted declaration not to contribute to PPK that they will again contribute to PPK for their benefit as of April 2023.
Hence, in 2023 an Automatic PPK Enrollment will take place. The employer is obliged to enroll all employees who have previously declared to opt out of PPK. The first automatic PPK enrollment will take place on March 1, 2023. The employer does not need to obtain the employee’s consent to enroll them to PPK. This means that if an employee does not re-submit a declaration to opt out of the PPK contributions, he or she should be automatically enrolled to the program. However, the automatic enrollment only applies to those between the ages of 18 and 55.
Employees between the ages of 55 and 70 should apply to their employer to enter into a PPK agreement on their behalf and for their benefit in order to join the program.
What should an employee do? If he or she is a PPK participant and makes contributions he or she does not have to do anything. If he or she is not a participant and still does not wish to participate in PPK, he or she must resubmit a declaration to opt out of the program.
The automatic enrollment deadlines are fixed for all organisations, regardless of the PPK implementation date.
The automatic enrollment does not apply to individuals who will turn 55 before 1 April 2023.
The employer will be able to enroll them to PPK or resume their involvement in the program solely at the employees’ request. Those who turn 70 before 1 April 2023 will not be able to become participants of the Employee Capital Plans.
Summary of the important deadlines regarding PPK for the employers below.
- 28 February 2023 –
The employer is obliged to inform all persons who have made a declaration to opt out of making contributions about the automatic PPK enrollment. An exception is made for those who, after submitting a declaration to opt out of making contributions to PPK and before 1 April 2023 will turn 70 years old. Such persons are not covered by the employer’s information obligation.
- 1 March 2023 –
A new declaration on resignation from making contributions to PPK can be submitted by the employee/contractor on March 1, 2023 at the earlier. The previously submitted declaration of resignation is effective until the last day of February 2023.
The purpose of SME INFO is to provide general information and to draw the attention to the current changes in law which we believe to be important for the business operation of our clients. It is not a replacement for careful review of the acts and rules and the consultation with your tax advisor.
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