The year 2023 will bring many changes to labour law in Poland and may be challenging for HR departments. Below, we describe the most important changes coming into force at the start of the year that are worth keeping in mind.

Minimum wage increase

In 2023, due to high inflation, the minimum wage will be increased twice (by default, a change in this respect is introduced once a year). From 1 January, the minimum wage amounts to PLN 3,490 (PLN 3,010 in 2022), and from 1 July it will amount to PLN 3,600.

The increase in the minimum wage also entails an increase of certain other employee benefits, the value of which is determined by reference to the minimum wage, such as the allowance for night shift or the maximum amount of statutory redundancy pay.

From 2023, also the minimum hourly rate will increase to PLN 22.80 from 1 January and to PLN 23.50 from 1 July.

Increase of business trip-related allowances

From 1 January 2023, the per diem to which employees are entitled for domestic business trips has been increased to PLN 45. Which represents an increase of PLN 7 compared to the previous year.

Other travel-related allowance rates are also changing. Thus, a lump sum to cover the costs of travel by local transport will amount to PLN 9 (previously PLN 7.60), and the lump sum to which an employee who has not been provided with free accommodation and who has not submitted a bill in this respect is entitled will amount to PLN 67.50 for each overnight stay (previously PLN 57). The cap on reimbursement of documented costs of accommodation will also be increased up to PLN 900 (previously PLN 760).

Increase of compensation for the use of a private car for business purposes

From 17 January, compensation for the use of a private car for business purposes will also be increased. According to the new rates per kilometre of vehicle mileage, the employer will reimburse the employee, respectively:

  • PLN 0.89 for a passenger car with an engine capacity of up to 900 cm3 (previously PLN 0.5214)
  • PLN 1.15 for a passenger car with an engine capacity of more than 900 cm3 (previously PLN 0.8358).

Social security contributions

The amount of the annual limitation of the contribution calculation basis for pension and disability insurance for employees in 2023 is PLN 208,050 (PLN 177,660 in 2022). Above this amount, pension and disability contributions are not paid.

In 2023, the social security contributions of self-employed individuals will also be higher. Sole traders pay contributions at a flat rate. This year, for those who do not qualify for any preferential rates, social security contributions (excluding health contributions) will be increased to PLN 1,418.48 per month - including voluntary sickness contribution and excluding health contribution. In 2022 it was PLN 1,211.28

Index for calculating holiday pay

In 2023, the ratio will be 20.83.

Contributions to the Social Fund

The amount of the annual contribution per employee for the company social benefits fund will remain unchanged compared to 2022 and will amount to PLN 1,662.97.

Mandatory employee pension plans (PPK)

For the first time in 2023, there will be automatic re-enrolment in an employee pension plan for employees who have opted out. Employers have time until 28 February to inform of this fact all those under the age of 55 who have submitted an opt-out declaration.

The resumption of PPK contributions will take place from 1 April, unless the person entitled to participate in PPK again submits a declaration to opt out of this form of saving for future retirement.

Further anticipated changes in law

Further changes to labour law regulations, which are still expected in 2023:

  • At its mid-January session, Polish Parliament will again, following amendments by the Senate, take up a draft amendment to the Labour Code, permanently introducing remote working instead of teleworking, and allowing employers to conduct routine sobriety checks (also for substances having a similar effect to alcohol like drugs). The use of the introduced solutions will require the adjustment of HR documentation in this respect.
  • Changes to preventive medical care for employees are also expected to be announced. Employees will be able to benefit from broader preventive examinations free of charge on the occasion of compulsory employee examinations. If an employee referred for an initial, periodic or follow-up medical examination fulfils the conditions for inclusion in a health programme or health policy programme, the examining physician will refer the employee, with his/her consent, to participate in the health programme or health policy programme.
  • By August 2022, Poland was obliged to implement Directive 2019/1152 of the European Parliament and of the Council (EU) 2019/1152 of 20 June 2019 on transparent and predictable working conditions in the European Union, which aims to increase the transparency and predictability of employment and thus improve the working conditions of employees, and Directive 2019/1158 of the European Parliament and of the Council (EU) 2019/1158, the so-called Work Life Balance. These directives have not yet been implemented by Poland. It is currently announced for 2023. Their introduction may require changes to the employer's existing documents and updated processes.
  • A unification of the rules for the termination of open-ended and fixed-term contracts has also been announced for 2023. This is expected to result in, among other things, the obligation to justify the termination of fixed-term contracts, union consultation of termination and the possibility to apply for reinstatement (in case of unlawful termination) also in the case of a fixed-term contract. Until now, involuntary termination of a fixed-term contract by an employer did not require a reason or union consultation. However, these provisions were found to violate the principle of equal treatment in employment. The introduction of the new law will require an update of the company's existing processes for terminating fixed-term contracts
  • 17 December 2021 marked 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 Whistleblower Protection Directive. In December 2022, new draft legislation implementing the directive was published. However, work on this draft is still at an early stage. It has still not even reached Parliament. However, once it has been enacted, it may be necessary to introduce appropriate internal regulations or adapt company arrangements accordingly.

The rules for the employment of foreigners are also to change this year. The process is to be simplified and streamlined, including by eliminating the labour market test. Entities employing foreigners should follow the legislative work in this area in order to adapt in time to changes in the procedure