The beginning of 2022 is rich in legal changes affecting HR relations. What's new for employers and employees this year in Poland?

Tax reform

The beginning of the year is definitely dominated by the changes in labour taxation resulting from the reform of the tax system (the so-called "Polish Deal") and concerns related to the application of the new regulations. The changes introduced include, among other things:

  • exclusion of the possibility to deduct health contribution from income tax
  • introduction of payment of a health contribution on income also in case of majority of sole traders (not a lump-sum amount as it was previously, where the lump sum was relatively low)
  • introduction of health insurance coverage for members of management boards and commercial proxies who receive remuneration on the basis of a resolution of an authorised company body (previously exempt from such coverage)
  • increase of the PIT-free amount from PLN 8,000 to PLN 30,000 per annum
  • increase of the threshold, from which the 32% income PIT rate applies from approx. PLN 85,000 to PLN 120,000 per annum
  • introduction of a middle class relief, (applicable of one's annual earnings fall between approx. PLN 68,500 and approx. PLN 133,500)
  • exemption from taxation up to approx. PLN 85,500 for persons returning to Poland or transferring their tax residence to Poland, persons bringing up at least four children and persons continuing employment despite reaching retirement age
  • reduction of the flat tax rate for persons conducting business activity in the IT sector and medical sector
  • change in the rules of calculating the car benefit for tax purposes if an employee receives a company car for private use.

Higher minimum wage

As of 1 January 2022 the gross minimum wage ultimately amounts to PLN 3,010, which is an increase of PLN 210 compared to 2021. The minimum hourly rate applicable in case of service agreements amounts to PLN 19.70 (increase by PLN 1.40).

The higher minimum wage will also translate to, among others, an increase in the night-shift allowance and the statutory cap on the redundancy pay (PLN 45,150 in 2022).

Changes in the entitlement to sickness and maternity benefits

Certain changes have also been introduced to the provisions regulating the entitlement to receive benefits for the period of illness or maternity, among others:

  • the rules for calculating periods during which an employee is entitled to receive sickness benefit have changed. In principle, an employee may receive sickness benefit for no more than 182 days. Previously, in order to determine the 182-day period, sickness periods between which there was a break of no more than 60 days were added together if the reason for the absence was the same illness. A new illness restarted the clock. This no longer in the case. Starting from this year the type of illness does not affect the clock (with the exception of sickness during pregnancy)
  • the period of entitlement to the benefit after termination of employment will be reduced from 182 to 91 days. However, this change will not apply in case of pregnancy or tuberculosis
  • from the beginning of this year sickness benefit for the period of hospitalization is paid according to general rules. It is no longer be subject to additional reduction, as it was previously.

Increase of social security contributions

In 2022, the cap on the amount of pension and disability contributions will amount to PLN 177,660.

Sole traders will continue to pay lump-sum social insurance contributions. The "Polish Deal" does not contain any changes in this respect. However, due to the increase in the basis for calculating the lump sum contributions, the monthly burdens will be higher compared to 2021 and will amount to PLN 1,211.28 (standard contributions, including voluntary sickness contribution).

Contributions for the purpose of conducting statutory social activity

The new year also brings an increase in the contribution paid by employers for the purpose of conducting statutory social activities (the so-called social fund). Such social funds should be established by companies employing at least 50 employees. This year the regular annual contribution will be around PLN 1,650 per employee.

Changes in immigration regulations

At the beginning of 2022, an amendment to the immigration regulations will also come into force. The new legislations aims to simplify procedures related to obtaining permits by foreigner workers. The changes include, among others:

  • replacement of the requirements to have a place of residence and a source of stable and regular income sufficient to cover costs of living with the requirement to receive at least the minimum wage
  • broadening the list of circumstances that do not require amending or issuing a new residence and/or work permit
  • introduction of solutions aiming at faster legalisation of stay and work by foreigners intending to perform work for companies of special strategic importance for Polish economy
  • extending some of the permit-free periods
  • shortening some of the deadlines for examination of legalisation applications

What else should be expected in 2022?

17 December 2021 was the deadline for the implementation of Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 known as the Directive on Protection of the Whistleblowers. Regulations implementing this directive have not yet been adopted by Poland. However, work on them is already in progress. It can be expected that detailed solutions in this area will soon be enacted. Therefore, it is recommended to carefully follow further works and prepare for this process.

By 2 August 2022, Poland is obliged to implement the so-called Work Life Balance Directive. The purpose of the Directive is to equalise opportunities on the labour market between women and men by facilitating the reconciliation of work and family life. Among other things, the directive introduces two months of parental leave reserved exclusively for fathers and a care leave of five working days per year for each employee.

Other changes in the law that may be introduced in 2022 are:

  • guaranteeing employers the authority to verify vaccination certificates and COVID-19 test results, which remains a grey area in Poland
  • regulating remote work in the Labour Code (instead of current temporary COVID-related provisions)
  • regulating the rules under which employers will be allowed to perform preventative sobriety checks.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.