Late salary payments carry serious legal and financial consequences, which can cost the company thousands and, in extreme cases, damage its reputation. For employees, salary is essential for household stability, paying bills, and managing loans. Even a one-day delay can cause stress and undermine trust in the employer.

Employer obligations under the Polish Labor Code

According to the Article 85 of the Labor Code:

• salaries must be paid at least once a month,
• payments must be made on a fixed, predetermined date,
• the employer must specify the payday in the employment contract, workplace regulations, or collective agreement.

In practice, the most common payday is the 10th day of the following month, although some companies (e.g., in manufacturing) choose earlier dates, such as the 1st or 5th. The law obligates employers to pay salaries on time, regardless of the chosen date.

Consequences of late salary payments

Failing to pay salary on time can expose employers to a range of risks.

Statutory interest

An employee has the right to claim statutory interest for each day of late salary payment. Importantly, these interest payments count as employment income but are tax-exempt under the Art. 21 of the PIT Act. This means the employer deducts tax only from the salary itself, not from the interest.

For companies, such interest may be treated as a tax-deductible cost, provided it is actually paid. Since September 4, 2025, the statutory interest rate for delays is 10.25% annually, meaning even short delays can generate significant costs for employers.

Right to terminate the contract

Repeated delays are considered a serious breach of the employer’s obligations. The employee may terminate the contract without notice and claim compensation equal to their notice period salary.

Fines and sanctions from PIP

The State Labor Inspectorate (PIP) monitors payment timeliness. Employers can face fines ranging from 1 000 PLN to as much as 30 000 PLN.

Court claims and compensation

Employees can go to court. They may demand compensation, apart from overdue payment and interest, if the delay caused the financial harm.

Why do late salary payments happen?

The most common reasons include:

• cash flow problems – late payments from clients can create liquidity gaps,
• errors in payroll processes – miscalculations of overtime, absences, or allowances,
• lack of automation – companies relying on manual Excel sheets are more prone to mistakes,
• unclear procedures – without designated responsibility, payroll processes can easily fall apart.

How to avoid delays in payments?

Preventing late payments requires both technology and financial discipline. Modern HR and payroll systems allow payroll lists and ZUS contributions to be calculated with a single click, reducing errors. Moreover, monitoring cash flow regularly helps spot risks early. In addition, many SMEs choose to delegate payroll to professional accounting offices. See how we can help you with salary transfers.

What happens when an employer pays a salary late?

If a delay has already occurred, the employer should:

1. Immediately transfer the overdue salary with statuatory interest.
2. Explain the reason for the delay to employees and present a corrective plan.
3. Fix payroll processes to prevent future issues.

Why timely salary payments matter?

Punctual payments are more than a legal requirement. They bring tangible business benefits:

• employee loyalty – reliability builds long-term trust,
• higher motivation and productivity – financial security allows employees to focus on work,
• company stability – being known as a trustworthy employer strengthens relationships with staff, clients, and investors.
• cost savings – avoiding fines, interest, and lawsuits protects the bottom line.

How can we help your business?

We understand how crucial payroll accuracy is for both employees and employers. That is why we provide comprehensive payroll and HR services including:

• full salary and ZUS settlement management,
• guaranteed timeliness and compliance with current laws,
• representation during audits and communication with authorities.

With our support, you can focus on growing your business while we handle the formalities.

If you need additional support in accounting and hr&payroll services contact us!

Text based on: INFORLEX