What are the income amounts exempt from wage deductions in 2021?

Due to the increase in the minimum wage to PLN 2,800 as of 1 January 2021, the amounts exempt from deductions in 2021 are also increasing.

Let us recall that from remuneration for work – after deducting social security and health insurance contributions, personal income tax advances, and payments to the Employee Capital Plans (PPK), if the employee has not opted out – only the amounts listed in Article 87 § 1 of the Labour Code are subject to deduction:

1) amounts enforced under enforceable titles for the satisfaction of alimony obligations;

2) amounts enforced under enforceable titles for covering obligations other than alimony;

3) cash advances granted to the employee;

4) disciplinary fines.

After deductions, the employee must still receive an amount of at least:

• 100% of the minimum wage for the given year after deduction of social security contributions and personal income tax advances in the case of deductions enforced under enforceable titles for covering obligations other than alimony;
• 75% of the minimum wage for the given year in the case of deductions of cash advances granted to the employee;
• 90% of the minimum wage for the given year in the case of deductions of disciplinary fines imposed by the employer.

In the case of voluntary deductions made based on the employee’s written consent, the exempt amount is:

• the minimum remuneration referred to earlier – for deductions of obligations owed to the employer,
• 80% of that amount – for deductions of other obligations (Article 91 § 2 of the Labour Code).

The exempt amount is the net amount. Its value depends on whether the employee:

• benefits from the PIT exemption for young people, under which income tax advances are not withheld from the employee’s remuneration;
• participates in PPK,

Amounts exempt from deductions are calculated based on the minimum wage applicable in the given calendar year for employees working full time. In 2021, the minimum wage will be PLN 2,800.

Amounts exempt from deductions for part-time employees are reduced proportionally to their working time (Article 87¹ § 2 of the Labour Code).

The tables below present the deduction exemption amounts for employees over the age of 26, working full time and part time, who have opted out of PPK, assuming 2020 tax and contribution burdens.