A life estate agreement (“umowa dożywocia”) is legally treated as a form of compensated transfer of real estate. Both administrative courts and tax authorities consistently confirm this interpretation. However, the tax consequences for the parties involved are somewhat unusual. For the person...
Vacation pay in Poland
Calculating vacation pay is exteremely important – an employer must ensure fair compensation for their employees.
The Regulation of the Minister of Labour and Social Policy stipulates that salary and benefits are taken into account when determining vacation pay. The basis of the pay include elements such as:
- additional pay earnings – bonuses, commisions, internship bonuses etc.
- compensation for overtime work
- bonuses for overnight work
- pay for overtime work for the part-time employees
There are some exceptions to the elements of the pay that do not count as vacation pay:
- pay due to the inability to work caused by an illness
- compensation of pay up to the minimum wage
- pay for the annual leave or other absence that was not excused
- pay related to downtime at work and willingness to work
- bonuses for jubilees
- bonuses related to the achievement for fulfillment of an assigned tasks
There are fixed and variable elements of pay that are impactful towards the vacation pay.
Fixed elements of pay include:
- basic pay
- regulation bonuses
- internship bonuses, function bonuses etc.
When the pay consists of only the fixed elements, the basis of vaction pay is not determined.
Variable elements of pay that:
- relate to periods not exceeding one month – they must be included in the vacation basis, which is paid 3 months before the month of the vacation
- vary significantly – they must be included in the averge amount of pay, that is paid 12 months before vacation. That happens if the renumeration of pay is due to the 10th of the month.
How to actually calculate vacation pay?
- Determine what the basis of vacation pay is.
- Determine the number of work hours.
- Make calculations related to the rate per hour of vacation (the basis of vacation pay should be divided by the number of work hours).
- Determine the number of hours of vacation.
- Make calculations related to vacation pay (the rate per hour of vacation should be multiplied by the number of vacation hours).
Text based on: https://poradnikprzedsiebiorcy.pl/-jak-wyliczac-wynagrodzenie-urlopowe
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