Vacation pay in Poland

July 5, 2023

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?  

  1. Determine what the basis of vacation pay is. 
  2. Determine the number of work hours.
  3. Make calculations related to the rate per hour of vacation (the basis of vacation pay should be divided by the number of work hours). 
  4. Determine the number of hours of vacation.
  5. 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  

Related Posts

Inspection of the National Labour Inspectorate (PIP)

Inspection of the National Labour Inspectorate (PIP)

The National Labour Inspectorate (PIP) is the institution that monitors compliance with the regulations on the employment of employees by employers in Poland. The duties of the National Labour Inspectorate are regulated by the Act on the National Labour Inspectorate...

Do taxes affect the level of happiness in a country? 

Do taxes affect the level of happiness in a country? 

According to the annual World Happiness Report, Finland ranks as the happiest country in the world. The top ten included other Scandinavian countries such as Denmark, Sweden, Iceland and Norway. Poland took 39th place, and Sierra Leone, Lebanon and Afghanistan were at...

New workplace regulations

New workplace regulations

On November 17, 2023, a regulation from the Minister of Family and Social Policy came into effect, amending the regulation concerning safety and hygiene at workstations equipped with display screens.  Workstation equipment   According to the new definition, a...

Stay informed with Easybooks!

Join our newsletter and stay updated on the latest tax regulations and changes.

Each month we'll send you practical accounting advice and insights.