Polish Order for employees
05.01.2022
- The core of the Polish Order are changes in the tax policy, beneficial for Polish families – said Minister Marlena Maląg at the press briefing. The event was also attended by Deputy Minister of Finance, Jan Sarnowski, President of ZUS Prof. Gertruda Uścińska and Chief Labour Inspector, Katarzyna Łażewska-Hrycko.
On 1 January, the Polish Order became a fact. What entered into force, was, inter alia, Family Care Capital, i.e. even up to PLN 12 thousand for each second and subsequent children from 12 to 35 months of age. – More than 170 thousand parents have already applied for this benefit – at the press briefing, Minister Marlena Maląg reiterated the most important changes related to the Polish Order.
For families, employees and pensioners
As from the New Year, the reform of the tax system – the core of the Polish Order – also entered into force. This has been the greatest reform of the tax system for three decades, which brings back the right proportions, restoring order in the tax system.
The changes will be beneficial to families, including large families with at least four children, who, as from this year, may use the new instrument which is “PIT-0 for Families 4+”. This is a solution for all parents – regardless of whether they are employed full-time or are self-employed. Every parent of at least four children, whose income is up to PLN 85,528, will not pay PIT. For both parents, it will be the amount of PLN 171,056.
Old age and disability pensioners benefit from the Polish Order. Those receiving benefits of up to PLN 2.5 thousand gross will not pay tax at all, those with higher benefits will pay a lower tax, only on the amount exceeding PLN 2.5 thousand.
The Polish Order is also beneficial to employees. – The tax-free amount increases to the level of PLN 30 thousand – summed up Minister Maląg.
Lower taxes for 17 million people
Taxes will not be paid by employees, entrepreneurs, old age and disability pensioners whose annual income does not exceed PLN 30 thousand. Taxpayers with higher income will pay income tax only on the amount exceeding PLN 30 thousand. – Those employees and entrepreneurs who earn up to PLN 5.7 thousand gross per month will gain most – explained Deputy Minister of Finance, Jan Sarnowski. In total, 17 million persons will pay lower taxes.
The President of ZUS, Prof. Gertruda Uścińska, reminded that a longer period of work affects the amount of the pension benefit. – The tax exemption for pensioners introduced in the Polish Order encourages persons who have already reached the required retirement age to remain in the labour market – explained Prof. Uścińska.
The Chief Labour Inspector, Katarzyna Łażewska-Hrycko, stressed that the Polish Order is also to protect and improve the situation of employees. – The National Labour Inspectorate also controls and supervises the amount of remunerations paid, including in the case of civil law contracts. – PIP provides legal advice, so it helps both employees and employers – declared Minister Łażewska-Hrycko.