New per diem rates for business travel – posting in 2022

New per diem rates are now in force. The Regulation of the Minister of Family and Social Policy amending the regulation on the entitlements of employees employed in state or local government budgetary units in respect of business travel entered into force on 28 July of this year. It increases the previous per diem rates for domestic business travel. Further changes, including those concerning foreign travel, are just around the corner.

Who is obliged to pay per diems?

Employers outside the public finance sector may independently determine the conditions for the payment of per diems and other entitlements related to business travel within the country and abroad by means of collective labour agreements, remuneration regulations or employment contracts (Article 77⁵ § 3 of the Labour Code). Regulations in force at a given employer may provide for different conditions for the reimbursement of business travel expenses (e.g. per diems) than those laid down in the regulation specifying the amounts of entitlements for public sector employees, provided that such conditions are not less favourable than those set for public sector employees.

If, however, the collective labour agreement, remuneration regulations or employment contract do not contain such provisions, the employee is entitled – pursuant to Article 77⁵ § 5 of the Labour Code – to reimbursement of business travel expenses in accordance with the provisions of the regulation.

Accordingly, the changes discussed affect not only the amount of entitlements for public sector employees on business travel, but also the minimum entitlements that employers are obliged to provide to employees outside the public finance sector.

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New per diem rates and other business travel entitlements

The domestic business travel per diem has been increased by PLN 8, to PLN 38. Accordingly, the flat-rate reimbursement for local public transport, which constitutes 20% of the per diem, will be PLN 7.60 (previously PLN 6), and the flat-rate reimbursement for overnight accommodation, constituting 150% of the per diem, will be PLN 57 (previously PLN 45). Reimbursement of documented overnight costs will be made in the amount indicated on the invoice, but not exceeding twenty times the per diem for one hotel night, i.e. up to PLN 760 (previously PLN 600).

Changes to the amount of per diems for business travel are also linked to tax exemptions. According to separate regulations, per diems and other entitlements for the time of business travel:

– are exempt from income tax (Article 21(1)(16)(a) of the Personal Income Tax Act of 26 July 1991 – Journal of Laws of 2021, item 1128, as amended),

– are not included in the basis for calculating pension and disability insurance contributions (§ 2(1)(15) of the Regulation of the Minister of Labour and Social Policy of 18 December 1998 on detailed rules for determining the basis for pension and disability insurance contributions – Journal of Laws of 2017, item 1949, as amended),

up to the amount specified in separate laws or in regulations issued by the minister responsible for labour concerning the amount and conditions for determining entitlements for employees employed in state or local government budgetary units for business travel within the country and abroad.

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Further per diem increases from next year – including for foreign business travel

On 28 July of this year, another draft amendment to the per diem regulation was submitted. The draft provides for an increase, from 1 January 2023, of the domestic business travel per diem rate to PLN 45 per day. Moreover, from next year, the per diem and accommodation limits for foreign travel will also change for individual countries. The new rates are set out in the following table included in the draft:

Bez kategorii    23.05.2025

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