Uncategorized
Average Salary in Poland – Complete Outlook
Average salary in Poland in 2020
The average salary in Poland, by July of 2020, is 1,432 USD per month (5,382 PLN monthly).
This is a level of income similar to countries like Chile or Uruguay. But since Poland have relatively low inequality, in those South-American places you will find more poor (and super-rich) people than in Polish lands.
One thing that is very characteristic of Poland and other Central/Eastern European countries are the brutal differences – both in living costs and salaries – between the capital and other cities. Warsaw can be near 100% more expensive than smaller cities, with residents having better incomes, but paying more for rent and transportation.
Average Salaries by Industry
There are also differences between professions and activities, but most sectors are around the norm. Below we list the average salaries for the main segments of the country by June of 2020, according to GUS (Statistical Office of the Polish Government):
- Entrepreneurial Sector: 5,286 PLN
- Heavy Industry: 5,321 PLN
- Manufacturing: 5,023 PLN
- Construction: 5,257 PLN
- Trade and Repair of Motor Vehicles: 5,027PLN
- Transport and Storage: 4.577 PLN
- Hospitality and Gastronomy: 3,593 PLN
- Information Technology and Communication: PLN 8,925
- Real Estate Services: 5,546 PLN
- Administration and Support Activities: 3,957 PLN
IT surges as a clear outlier, making Poland one of the most attractive hubs for IT professionals in Europe. There is the additional benefit that many of the job vacancies for this sector are in cities like Katowice and Wroclaw, with living costs considerably lower than Warsaw.
Average Salaries by Region in Poland
Talking about the salary differences between regions – called Województw (the polish equivalent to province) – we can see some outliers. Below a list of the average salaries per area (with the main city of each in parenthesis) in June of 2020:
- Mazowieckie (Main city: Warsaw) 6 236 PLN
- Dolnośląskie (Main city: Wrocław) 5 869 PLN
- Małopolskie (Main city: Krakow) 5 330 PLN
- Pomorskie (Main city: Gdansk) 5 310 PLN
- Śląskie (Main city: Katowice) 5 246 PLN
- Wielkopolskie (Main city: Poznan) 4 900 PLN
- Zachodniopomorskie (Main city: Szczecin) 4 872 PLN
- Łódzkie (Main city: Łódź) 4 770 PLN
- Podkarpackie (Main city: Rzeszów) 4 203 PLN
As previously mentioned, the Mazowieckie region has higher salaries but also higher costs. While the average salary in the region of Warsaw is 48.3% higher than in the area of Rzeszów, the price per square meter to rent an apartment in Warsaw is a whopping 71% higher. So be aware of those costs difference when analysing if your salary or earnings are good enough.
Minimum salary in Poland
You have two types of minimal salary in Poland: monthly and by the hour. Full-term contracts follow the first while part-time contracts use the second. More about the contract types you will find below.
In 2020, they are:
- Monthly Minimal Salary in Poland: 2600 PLN
- Hourly Minimal Salary in Poland: 17 PLN
Salary increases in Poland
Both the minimal salary and the average salary are sharply increasing, although not in equal proportions.
In 10 years the minimal monthly salary nearly doubled, going from 1317zl in 2010 to 2600zl in 2020. The current government have plans to not only keep the rising pace but even accelerate it, forecasting to reach 4000zl by 2023[1]. A 53% increase in only 3 years, or 327% raise in one and a half-decade.
Impressive, right?
But two other numbers raise some questions about the minimal wage boom.
The national average salary in the same 10 year period increased “only” 67% (from 3224,98 to 5382 zlotys monthly), below the near 100% growth of the minimal rate[2].
The other problem are growing prices, for a country that until recently had near-zero inflation. In the second half of 2020, Poland had an annualized inflation of 3.9%. In the European Union, only Hungary has more than that.
Net vs Gross salary in Poland
One important consideration is that the earnings specified above are gross numbers. In Poland, as in the majority of the European countries, there are taxes and contributions retained from your wage. After all discounts, the amount you receive in your bank account is the netto salary.
The value discounted from the gross salary depends on things like marital status, place of residence, if you are a student and a few others. The most important element in the type of your work contract.
The 3 most used forms of contract in Poland are:
1 – Normal Employment Contract (Umowa o pracę)
This contract is regulated by Labour Law and entitles the employee to maternity leave, paid holidays and other social benefits. It also is considered by banks as stable income for credit applications. For employers, however, this is the most expensive contract. For this reason is a standard practice for people to be hired for a probation period of few months when the employer (or the employee) have more flexibility to terminate the contract if the cooperation is not suitable for both parts.
2 – Umowa Zlecenie
This is a contract to hire someone for the performance of a specific task, without a regular schedule. For example a handy-man that performs occasional reparations in an office building or language teachers that receive per lecture. This contract is not regulated by labour law, which makes it cheaper than a normal Umowa o pracę, but still must respect the limits of the minimum salary and pay some of the social contributions.
3 – Umowa o Dzieło
As the Umowa Zlecenie, this type is regulated by civil law instead of labour law. The biggest difference is that the Umowa o Dzieło is not a contract to perform a specific task, but to conclude it. Therefore, the remuneration specified in the contract is not limited by the minimum salary. It is the cheapest form of contract for both employer and employee (who have a higher netto, or liquid, salary due to smaller discounts). While attractive, this type of agreement is not allowed for recurring functions but only for specified tasks.
Examples of Gross and Netto Salaries by different contracts:
Disclaimer: Many other factors influence your netto salary, like the place where you live, number of kids, or voluntary contributions. To list all would result in an article beyond the maximum number of characters possible, so be aware that your contract values may differ from the examples below. This is not legal advice.
Example 1: Gross (or Brutto) salary of 4 500,00 PLN per month. Adult with more than 26 years old – Individuals with less than 26 years are exempt of some taxes.
Umowa o pracę
Netto (or liquid) salary: 3 260,58 PLN
Cost for the employer: 5 421,60 PLN
Umowa Zlecenie
Netto salary: 3 832,00 PLN
Cost for the employer: 4 500,00 PLN
Umowa o Dzieło
Netto salary: 3 888,00 PLN
Total cost for the employer: 4 500,00 PLN
Example 2: Gross salary of 9000 zlotys per month. Adult with more than 26 years old.
Umowa o pracę
Netto (or liquid) salary: 6 435,15 PLN
Total cost for the employer: 10 843,20 PLN
Umowa Zlecenie
Netto salary: 7 663,00 PLN
Total cost for the employer: 9 000,00 PLN
Umowa o Dzieło
Netto salary: 7 776,00 PLN
Total cost for the employer: 9 000,00 PLN
Example 3: Gross salary of 12000 zlotys per month. Adult with more than 26 years old.
Umowa o pracę
Netto (or liquid) salary: 8 550,87 PLN
Total cost for the employer: 14 457,60 PLN
Umowa Zlecenie
Netto salary: 10 218,00 PLN
Total cost for the employer: 12 000,00 PLN
Umowa o Dzieło
Netto salary: 10 368,00 PLN
Total cost for the employer: 12 000,00 PLN
Salary in Poland: Conclusions
As you can see, there are considerable differences between the gross and the liquid salary depending on your level of income, type of salary and other factors. This makes it crucial for you to have proper advice before deciding to accept your next professional challenge. Colligere Expat Consultancy can help you with that.
In addition, salaries (and living costs) vary greatly across Poland. If you want to have a complete outlook of the prices and costs of different lifestyles in the Polish capital, Warsaw, check this article about the Cost of Living in Warsaw. If you are a person of polish ancestry, some expenses can be smaller, as we explained in a previous article about the Karta Polaka.
We are always open to your suggestions for the next article, so feel free to give your opinion in the comment section!
Author: Levi Borba, founder of Colligere Expat Consultancy, former RM specialist for the world´s greatest airline, and author of the books Moving Out, Living Abroad and Keeping Your Sanity and Budget Travelers, Digital Nomads & Expats: The Ultimate Guide. You can check some of his articles here.
Receive for FREE! Digital Book – 20 Essential Hacks for Saving Money While Travelling. Click here
Subscribe to our blog and receive for FREE in your e-mail the digital book that will teach you the way to cheaper flight tickets and even an upgrade to Business Class! Written by an author that worked during years in some of the best airlines of the planet.
[1] Source: https://www.bankier.pl/wiadomosc/Placa-minimalna-w-Polsce-wedlug-PiS-7-wykresow-ktore-warto-zobaczyc-7734936.html
[2] Source: https://nowosci.com.pl/srednia-pensja-w-polsce-w-2020-roku-o-ile-wzrosnie-najnowsze-dane-gus-czeka-nas-wzrost-pensji-wynagrodzenie-idzie-w-gore/ar/c1-14364933