HR and payroll legislative updates: Q4/2021

1. Higher charges for the Company Social Benefits Fund in 2022

In 2022, the amount of the charges will be determined based on the average monthly salary in the national economy in the second half of 2019, which amounted to PLN 4,434.58.

The charge for the Company Social Benefits Fund for teachers in 2022 will be made according to the base amount as of 1 January 2019, i.e. PLN 3,045.21.

2. ID cards including fingerprints from 8 November 2021

New ID cards will be issued for 10 years for persons over the age of 12, as they will be required to give fingerprints. For individuals up to 12 years, the ID card will be issued for 5 years, without taking fingerprints. Apart from fingerprints (in the electronic layer) and the handwritten signature of the ID’s owner, the new ID card will include some other changes, e.g. the designations of the member state (against the European Union flag in the background).

3. Payment of compensation to a former employee subject to contributions of Social Insurance Institution (ZUS)

The court settlement concluded between the former employee and the employer regarding the change of the way of the employment contract termination from disciplinary procedure to the agreement of parties and remuneration paid on its basis (called compensation) is subject to ZUS contributions. This was stated by the ZUS Branch in Lublin in the interpretation dated 28 September 2021, reference number: WPI/200000/43/677/2021.

4. Changes in Social Insurance Institution (ZUS)

As of 1 January 2022, a delay in the payment of contributions by the enterpreneur will no longer be an obstacle to receiving sickness benefit. The changes also include, among others, the amount of the benefit for the duration of hospital stay and the period of receiving the benefit after the termination of insurance.  

5. Annual limitation in the basis of assessment of pension premiums in 2022.

In 2022, the amount of limitation in the basis of assessment of pension premiums amounts to
PLN 177,660.

6. Taxes

As of 1 January 2022, a new tax scale will apply. As a result of these changes, the first tax threshold is increased to PLN 120,000 (once this amount is exceed, the tax rate of 32% should be applied).

7. Polish Deal

Starting from 1 January 2022, numerous amendments to the regulations are introduced by the act called Polish Deal (Journal of Laws of 2021, item 2105). The amendments will be systematically discussed in subsequent newsletters.

8. Amendments to the Act on foreigners

On 17 November 2021, the amendment to the Act on Foreigners and Certain Other Acts was adopted by the Sejm that changes, among others, the Act on Employment Promotion and Labor Market Institutions. The adopted amendments include:

  • Facilitated extension of the stay and employment of foreigners, e.g. resignation from the requirement for the foreigner to have a secure place of residence and from the requirement to have a stable and regular source of income,
  • Extension of the catalog of circumstances that do not require a change of the permit, e.g. the promotion of a foreigner will not require a change of the permit,
  • Longer validity periods for declarations on entrusting work to be performed,
  • Determining a 60-day deadline for settling the matter regarding granting a temporary residence permit,
  • Extending the deadline to 7 days for reporting the employment of a foreigner to the poviat labor office.

It is probable that the new regulations will enter into force in the first quarter of 2022.