Dear all

as of 1 January 2024, we will be facing some changes, related to the amount of remuneration and allowances paid to Employees, of which we hereby wish to inform you.

Changes in the amount of the minimum remuneration

First of all, we would like to draw your attention to the planned changes to the minimum remuneration.

In this context, we would like to remind you that the minimum remuneration is the lowest possible salary for a full-time employee. In determining whether the amount of an employee’s remuneration is at least equal to the minimum remuneration, certain components of remuneration, which are listed in Article 6, point 5 of the Act of 10 October 2002 on the minimum remuneration for work (i.e. Journal of Laws of 2020, pos. 2207) are not included.

The minimum remuneration in 2024 under the Regulation of the Council of Ministers of 14 September 2023 on the amount of the minimum remuneration and the amount of the minimum wage per hour in 2024 (Journal of Laws, pos. 1893) will be:

– from 1 January to 30 June 2024 – 4,242 PLN gross,

– from 1 July 2024 – 4,300 PLN gross.

Changes in the special working conditions allowance

In addition, we point out that from 1 January 2024, the allowance for special working conditions will be excluded from the basis for calculating the minimum remuneration and will not be taken into account when determining whether an Employee’s remuneration is at least equal to the minimum remuneration. For many employees, this could mean a significant pay rise, not only due to the increase in the minimum remuneration rate but also due to the exclusion of the special conditions allowance from the remuneration base. This is expected to improve the situation of the lowest-paid employees.

In this context, we would like to remind you that according to the new wording of the amended Article 1 point 11 of the Act of 10 October 2002 on the minimum remuneration for work (Journal of Laws of 2020, pos. 2207), the allowance for special working conditions is a remuneration supplement for performing work under conditions that are particularly arduous or harmful to health, work that involves great physical or mental effort, or work that is particularly dangerous.

Changes in the night working allowance

In the coming year 2024, the night work allowance will increase significantly due to the increase in the minimum remuneration. It is important to note that the night work allowance may vary from month to month depending on the number of working hours in a month. Therefore, in 2024, the allowance for each hour of night work will be 5.05 PLN gross in January-April, 5.30 PLN gross in May-June, 4.67 PLN gross in July, 5.12 PLN gross in August-September, 4.67 PLN gross in October, 5.66 PLN gross in November and 5.38 PLN gross in December.

In the case of employees who permanently perform night work outside the workplace, the allowance for one hour of night work may be replaced with a lump sum. The amount of the lump sum shall correspond to the expected time of night work.

In this regard, we would like to remind you that, according to Article 151⁷ § 1 of the Labour Code, night work is work performed between 9 p.m. and 7 a.m. with a maximum working time of 8 hours. An employee who performs night work is entitled to allowance of 20 per cent of the hourly rate defined based on the statutory minimum wage for each hour of night work.

Amounts of remuneration free of any deductions

Although the principles of deductions from an employee’s remuneration do not change per se, it should be remembered that the basic criterion for determining the amounts free of deductions is the minimum remuneration in the relevant year, and therefore a change in the amount of the minimum remuneration will also affect the amounts free of deductions.

In this context, we would like to remind you that, according to the Labour Code, the amount of remuneration free of compulsory deductions is:

• the amount of the minimum remuneration for work to which employees employed on a full-time basis are entitled, after deducting social security contributions, personal income tax advance and payments to the employee capital plan if the employee did not opt out of paying the above – with the deduction of amounts enforced under enforceable titles to cover claims other than alimony;
• 75 per cent of the remuneration referred to in point (1) – when deducting amounts of cash advance paid to the employee;
• 90 per cent of the remuneration referred to in point (1) – when deducting the financial penalties provided for in Article 108 of the Labour Code.

In contrast, the amount of remuneration free of voluntary deductions is:

• the amount of the minimum remuneration – when deducting amounts payable to the employer,
• 80 per cent of the amount defined in Article 87¹ 1 (1) of the Labour Code – in the case of deduction of debts other than to the employer.

In consideration of the above changes, we recommend that you pay particular attention to the level of benefits paid by employers to employees from 1 January 2024, as the new year will bring many significant changes in this regard.

If you have any questions about the detailed changes, you are welcome to contact our Law Firm.