What are the reasons for the lower wages in the Polish Lada? We explain

First, from January 2022, health insurance contributions can no longer be deducted from the tax base. The compensation for this change was to be a higher tax free amount, a higher tax threshold, and in the range of gross revenues of PLN 5701 – 11 thousand. PLN 141 (i.e. from PLN 68 thousand 412 to PLN 133 thousand 692 annually), in addition to the so-called middle class relief.

In order for the higher free amount to be settled in monthly advances, it is necessary to submit the so-called PIT-2. Some teachers did not submit it at all and were not even aware of this fact. Once submitted, PIT-2 is valid for the following years, and in December it was of marginal importance. 1/12 of the amount reducing the tax was PLN 43.76, so the lack of this form was less noticeable. From the new year, 1/12 of the tax reduction amount is PLN 425 (PLN 5,100 annually). So the difference is important.

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Importantly, the PIT-2 form can only be submitted in one place. In the case of teachers, having more than one employer is common. If the amount of remuneration at the employer with which the teacher submitted PIT-2 was low, e.g. 2,000 PLN gross, the tax calculated according to the new rules was “0”, and the employer did not settle the entire 1/12 of the amount reducing the tax, but only PLN 250 out of the possible to settle PLN 425. With the other employer, the exempt amount could not be taken into account at all. At the same time, according to the new rules, the health insurance premium was fully charged, which is not tax deductible, hence the difference. It is to be recovered in the annual tax return.

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Another reason could be the relief for the middle class. It can be used only when the income from work is in the range between PLN 5,701 – PLN 11 thousand. PLN 141 for one employer. And again, in if you had several jobs, you could have earned income that was eligible for relief on a monthly basis, but no employer was able to calculate the relief. It can be used only in the annual tax return.

Some teachers, for fear of losing the middle class tax credit, could also file a petition not to apply it, even if they were entitled to it.

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