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Poland salary and compensation package - What is included?


pavdel 5 | 22    
8 Dec 2011  #1
Dears,

as everybody can observe there is a considerably high percentage of deductions by the salary. I can see a table in the following link:

pracuj.pl/Kalkulatory/kalkulator-wynagrodzen.aspx

1) As far as i see there are 3 different types of employment : Umowa o pracę, umowa o dzieło and umowa zlecenie. Can anybody tell the differences?

2) In a salary of 5000 zł gross the net gets to 3550zł. Can you tell me what these deductions refer to:

Taxation, Health insurance, insurance and pension credit? In general what coverages does a compensation package include?

3) In Poland for somebody working in private company as an employee, how many salaries per year is he entitled to 12 or 13?

Thank you in advance
JonnyM 12 | 2,625    
8 Dec 2011  #2
Umowa o pracę, umowa o dzieło and umowa zlecenie

Umowa o pracy is a full contract of employment, umowa zlecenia is temporary. Both have tax and National Insurance deducted at the appropriate rate. Umowa o dzielo is a freelance contract for specific work done. It is taxed at the basic rate minus a small allowance for your (real or otherwise) expenses. There is no National Insurance taken from it; you are responsible for this yourself.

Can you tell me what these deductions refer to:

Taxation, Health insurance, insurance and pension credit?

Taxation is what you would expect it to be. Health insurance, insurance and pension credit are the three components of National Insurance. You have to pay it all, however you can opt for the pension part to go into a private fund of your choice. This is usually a good idea but whichever you choose, the amount you have to pay is the same.

In general what coverages does a compensation package include?

Your salary. This is Poland not Dubai.

In Poland for somebody working in private company as an employee, how many salaries per year is he entitled to 12 or 13?

12. Payable on the last day of each month.
OP pavdel 5 | 22    
8 Dec 2011  #3
Thank you very much for your prompt answer. I have some other questions.

generally in private sector as in many other countries ppl work overtime? Are these hours paid? I know that depends on the company, even here anymore the majority doesnt, but what is the tendency?

I ve heard that in poland while being in 1st year of employment yr not entitled to any leave? How true is that? Maybe they mean a paid leave? Otherwise ppl work all year with no leave? If somebody has work record abroad, is he excluded from that?

Thanks a lot
LwowskaKrakow 28 | 432    
8 Dec 2011  #4
Depends on your status and level in the company: If you are part of the upper or middle management team , you won't get paid for extra hours and you will be expected to put in a lot of them as a standard.

If you are at a lower position , you will usually get paid for hours exceeding the legal time per week.

You ll find this out in your work contract.
JonnyM 12 | 2,625    
  8 Dec 2011  #5
generally in private sector as in many other countries ppl work overtime? Are these hours paid? I know that depends on the company, even here anymore the majority doesnt, but what is the tendency?

Managers, no.

I ve heard that in poland while being in 1st year of employment yr not entitled to any leave? How true is that? Maybe they mean a paid leave? Otherwise ppl work all year with no leave? If somebody has work record abroad, is he excluded from that?

No, you get paid leave and start accruing it rght from the start. 20 days if you're fresh from university, otherwise 25. The first year thing doesn't really apply nowadays. - it's to do with receiving the old social fund payments which would partially cover holiday expenses back in communist times but are so small they are purely symbolic nowadays.
OP pavdel 5 | 22    
8 Dec 2011  #6
Well thats another question? What means a manager to you?

To us manager means somebody with 5+ years experience having as sub-employees at least 2-3 ppl. To you I see adds for managers even with no experience required?

In any case, i realise data is different so somebody working 6 months is entitled to 20/2 = 10 days of leave? Just notpaid? or few paid?

Thanks
JonnyM 12 | 2,625    
  8 Dec 2011  #7
What means a manager to you?

Generally, someone employed as a manager with that in their job title. Though the word is often overused in some English-speaking countries. They used to say 'executive' a few years ago...

20/2 = 10 days of leave? Just notpaid? or few paid?

25/2 = 12 days leave, paid.
andersm 4 | 32    
8 Dec 2011  #8
No, you get paid leave and start accruing it right from the start. 20 days if you're fresh from university, otherwise 25.

A newly hired person gets 20 days of paid leave in Poland? Wow, that's twice as much as a person in Canada. Typical here is you get 2 weeks until you've worked at a place for 4 or 5 years and then it goes up to 3 weeks for a few years, 4 weeks after a few more years, etc. etc. Poland is very generous compared to North America. I believe US is similar to Canada as far as vacation time.
JonnyM 12 | 2,625    
  8 Dec 2011  #9
A newly hired person gets 20 days of paid leave in Poland?

25 if they have the requisite number of years experience elsewhere. Here in Doha, it's usually 6 or 8 weeks!
andersm 4 | 32    
8 Dec 2011  #10
That is really quite incredible. Does a business need to hire extra staff to cover vacations or do the other employees just pitch in and take on more? What's the length of the work week? Canada it's 40 hours. Overtime @ 1.5 times regular pay for anything after an 8 hour day and if it's more than 4 hours over the regular day, OT is 2 times regular pay. How do they pay for overtime in Poland or Doha for that matter?
JonnyM 12 | 2,625    
  8 Dec 2011  #11
That is really quite incredible. Does a business need to hire extra staff to cover vacations or do the other employees just pitch in and take on more?

Here there's generally far more people than are possibly needed and a lot of time relaxing at work. It's a hard life. In Poland people have to cover their colleagues and in the summer employees must (by law) take an uninterrupted fortnight. This is sometimes ignored, though larger companies usually insist.

What's the length of the work week? Canada it's 40 hours

The same. But no lunch break as such, though a free meal is often provided. Not in Poland though - only tea and coffee are free there, however this is enshrined in law. Usually very good coffee.

Overtime @ 1.5 times regular pay for anything after an 8 hour day and if it's more than 4 hours over the regular day, OT is 2 times regular pay. How do they pay for overtime in Poland or Doha for that matter?

In Doha nobody does it, but in Poland it varies. Usually 1.5, though in good jobs people don't get it - many work late if they have to. In the civil service however they can finish quite early - a trade-off for the low wages.
andersm 4 | 32    
8 Dec 2011  #12
Here there's generally far more people than are possibly needed and a lot of time relaxing at work. It's a hard life. In Poland people have to cover their colleagues and in the summer employees must (by law) take an uninterrupted fortnight. This is sometimes ignored, though larger companies usually insist.

I'd like to know if Polish people are shocked when/if they come to North America to work. A few years ago when Canadian construction was booming there was a move afoot to bring in skilled European tradesmen due to a severe labour shortage. The perception was they'd be more quality conscious and harder working than the young kids who were more interested in texting than working. I can't image the Polish trades were particularly impressed with two unpaid 15 min coffee breaks and a half-hour unpaid lunch, bring your own food and drink. If people turned around and left for home I can see why.
JonnyM 12 | 2,625    
8 Dec 2011  #13
I'd like to know if Polish people are shocked when/if they come to North America to work. A few years ago when Canadian construction was booming there was a move afoot to bring in skilled European tradesmen due to a severe labour shortage.

A few years ago wages were quite low in Poland, so they'd probably have been very happy with the money. Plus the quality of life.
andersm 4 | 32    
8 Dec 2011  #14
In straight numbers wages are higher. A ticketed carpenter here where I live can earn $35/hr but on the other hand an average 3 BR house costs $350,000. You can see that purchasing power is likely not much different than in Poland. The numbers are different but relative to what you can buy are likely similar. (Have you any comparison numbers for wages and housing in Poland?) Quality of life - I have no experience of life in Poland but acknowledge that life in Canada is very easy compared to much of the world. Can't say that people are any happier though.
JonnyM 12 | 2,625    
9 Dec 2011  #15
(Have you any comparison numbers for wages and housing in Poland?

No figures to hand, but a mid level official in the tax office gets about 45k zlotych a year and a three bedroom flat in Warsaw costs at least ten times that. Food in the shops costs western prices and cars are more expensive than in Canada. In general wages in Poland v. prices are unfavourable compared to Westen Europe or North America. A ticketed electrician gets about the same as the aforementioned tax official, but with far less security of employment or paid holidays, but a chance of overtime.
OP pavdel 5 | 22    
9 Dec 2011  #16
I would say that prices in poland especially Warsaw are quite high to level of salaries. For example somebody with my position earns in best case around 4000 net/month so 40K.

At the same time a rent for a 2-room flat is 2500/month so in fact with bills around 3000. If not shared somebody has to spend 75% of his salary in rent. I still do not understand how ppl in Poland can have cars or go out frequently or shop in these huge shopping centres.

Except if my perception is different but I think even in Warsaw, an accountant or analyst, a banking employee or a logistics executive in level of 2-3 years experience shouldn expect to get more than 3500 to 4000 net? Am I close?
LwowskaKrakow 28 | 432    
13 Dec 2011  #17
I still do not understand how ppl in Poland can have cars or go out frequently or shop in these huge shopping centres.

The percentage of people in Poland living on council estates/housing projects is huge.
In Krakow for instance most people live in Nowa Huta, in flats which are former communist blocks ,back in the 90 s they could buy these flats for nothing or remain in them for very litle money.

Henceforth not having to dedicate all their income to Housing they have a bigger purchasing power and gigantic shopping malls with items the same price or at higher prices than in Austria are packed with clients...
polmed 1 | 217    
13 Dec 2011  #18
The percentage of people in Poland living on council estates/housing projects is huge.

Really ? Where ? Give me the numbers !
southern 76 | 7,105    
13 Dec 2011  #19
even in Warsaw, an accountant or analyst, a banking employee or a logistics executive in level of 2-3 years experience

Basically a foreigner will never get an employment by a Pole in the afore mentioned sectors.You should be happy to be accepted in the kind of menial jobs Poles do all over Europe and even these Poles are reluctant to give.A Greek can be successful there only in the traditional restaurant business since as we know love passes through stomach.
LwowskaKrakow 28 | 432    
13 Dec 2011  #20
Really ? Where ? Give me the numbers !

Where ? Everywhere in Poland. TBS one of the national agencies for building and managing council estates is in every single city.
for Krakow check tbsmaloposka.pl
For exact numbers one needs to contact each city's Townhall .
As far as i know most Poles do not have high salaries but if consumption is that high( and much better than anywhere else in Europe) and shopping malls keep being built it means they have some good disposable income.

Where would that disposable income come from if they had to put all of it on housing?
OP pavdel 5 | 22    
13 Dec 2011  #21
Basically a foreigner will never get an employment by a Pole in the afore mentioned sectors.You should be happy to be accepted in the kind of menial jobs Poles do all over Europe and even these Poles are reluctant to give.A Greek can be successful there only in the traditional restaurant business since as we know love passes through stomach.

So an alternative of kebabistan...could be souvlakistan or tzatzikistan. I ve heard about a famous Greek chef in Poland, actually the only foreigner belonging to the Master Chef's Club of Poland

Check his website vafidis.pl

So practically you mean that even by knowing the language they would prefer a Pole? Even if you already have a previous experience in the country?

Sounds realistic, since so many foreigners join here, to tell you the truth only the ones who were relocated by their home companies have a normal job/salary...
polmed 1 | 217    
13 Dec 2011  #22
The percentage of people in Poland living on council estates/housing projects is huge.

No , it is not !

According to data issued by GUS ( Polish Statistical Office )

usable floor space of
dwellings in square meters

total space 938 475 000 m²

ownership of

47 973 000 Gminas (municipal)
2 788 000 State Treasury


Which means a ratio of 20 m² to 1 m ² , so it means that only a small fraction of space is owned by municipal or state bodies.
LwowskaKrakow 28 | 432    
13 Dec 2011  #23
47 973 000 Gminas (municipal)
2 788 000 State Treasury

Those numbers do not speak to me, square meters...

How many Polish households live on council estate or benefit from a subsidized place would be interesting to know .

The problem of getting accurate figures is that loads of beneficiaries were given the opportunity to buy their council flats at some incredibly low rate so they fell in the statistics of Polish home owners.

My idea is that disposable income is linked to the fact of not having the burden of a high mortgage, but if you are saying that only a small fraction of Poles benefit from council houses then i don't know where their high purchasing power could come from .
andersm 4 | 32    
13 Dec 2011  #24
Food in the shops costs western prices and cars are more expensive than in Canada.

Let's compare apples to apples: a 2.3 kg bag of apples is 4 CAD or about 13 zł. I don't know what kind of cars Canada and Poland both have but I'll take a wild guess and say a Toyota Camry. A 2012 basic model is 23,700 CAD or around 78,200 zł. I'm using an exchange rate of 3.3 zł to one CAD though that fluctuates so there's a bit of slop to the comparison numbers.
JonnyM 12 | 2,625    
  13 Dec 2011  #25
No , it is not !

According to data issued by GUS ( Polish Statistical Office )

usable floor space of
dwellings in square meters

total space 938 475 000 m²

ownership of

47 973 000 Gminas (municipal)
2 788 000 State Treasury

Which means a ratio of 20 m² to 1 m ² , so it means that only a small fraction of space is owned by municipal or state bodies.

You have misunderstood his post. A council estate is a council estate, even if the flat has been bought. And an estate that belongs to a spoldzenie is social housing.

andersm

You don't see many Camry in PL, and apples are an odd choice. Try 4WD or Cheddar.
polmed 1 | 217    
13 Dec 2011  #26
And an estate that belongs to a spoldzenie is social housing.

You are totally wrong !

Spółdzielnia mieszkaniowa - so called "co- op" housing is not a part of social housing in Poland . The price for a flat sold by this type of developement is a market value price .The difference is that a builder / investor builds it without making any profit . This type of housing project was popular during PRL times . These days co- ops are not established any more . But still they exist just to maintain the flats resources of existing dwellers .

To me social housings mean buildings projects for poorer people who can`t afford to buy a dwellings for market value prices .

what does it mean in English ? -" A council estates/housing project " .

What I presume is that a council / social housing is a type of project called in Polish - mieszkania komunalne , what exactly was said in my previous post nb 22 . So municipal or state owned housing projects comprise of 5 % of total housing market what is really unmeaningful fraction . What I said earlier is very much valid .
delphiandomine 85 | 17,265    
13 Dec 2011  #27
You have misunderstood his post. A council estate is a council estate, even if the flat has been bought. And an estate that belongs to a spoldzenie is social housing.

Jonny, it pains me like hell to say it, but she's right for once.

The concept of "council estate" never really existed in Poland as far as I understand it (they turned the city centres into council estates instead) - "Spółdzielnia mieszkaniowa" are most definitely not council estates in terms of being owned by the municipality.

I know it's schematics, but thinking about where I live - the flats were built by the Spółdzielnia in the 70's/80's/90's - the ones in the 90's were sold directly on the open market, and the 70's/80's ones were either bought directly or rented at a normal price. The only twist was that they were sold in the early 90's for peanuts to existing renters - but this is without any comparison in English.

To me social housings mean buildings projects for poorer people who can`t afford to buy a dwellings for market value prices .

That's how it works in Poland at least - social housing is what still exists in of Poland, which is why you see them occupied by drunks who pay peppercorn rents (or don't pay at all). If the Spółdzielnia mieszkaniowa's were council - then they would be controlled by the council, but they very much are controlled by the Spółdzielnia (and ultimately, the residents).
polmed 1 | 217    
13 Dec 2011  #28
it pains me like hell to say it, but she's right for once.

Why is it so painful ? You know by reading my posts that most of the time I am right . It is just funny that some of you can`t accept this fact that a person like me of Polish descent and living in Poland is more acquainted with anything that pertains Poland .


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