14
Mar

Gross vs. net salary. Real Polish employee remuneration.

Gross earnings are otherwise the total remuneration, even before we deduct tax and social security contributions from it. In other words, it is the whole salary, which is included in the contract.

Gross earnings is the entire salary, the salary that affects the account is the net salary. Gross earnings are usually given when the employee is employed. During the interview, gross salary is negotiated. To find out how much the employee’s account will actually affect, you will need to calculate your net salary. 

The gross earnings are made up of the net remuneration, which is the one that finally transfers the employee’s account, as well as the social insurance contributions. Social insurance is, among others retirement and disability pension contributions, but also sickness and health benefits. This amount also includes personal income tax.

Gross earnings are not the total expense of an employee who bears the employer. The whole costs also include part of the contributions for pension and disability insurance, which is paid by the employer. In addition, they will also include accident insurance premiums and contributions to the Labor Fund, as well as the Guaranteed Employee Benefits Fund. The total costs of the employer are so-called gross-gross salary, or real money, which the entrepreneur will have to spend for the work of the person employed.

The minimum gross earnings in 2019 in Poland is PLN 2250, and the minimum hourly rate is PLN 14.70 gross.

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