Net vs gross salary: what is deducted from pay

Net salary is the gross amount reduced by three items: social insurance contributions, the health contribution and the income tax advance. Each is calculated from a different base, so the order matters. Your payslip shows the exact amount for your contract.

How gross becomes net under an employment contract (umowa o pracę)

Under an employment contract the payer calculates in this order:

1. Employee social contributions, 13.71% of gross in total: retirement (emerytalna) 9.76%, disability (rentowa) 1.50%, sickness (chorobowa) 2.45%.
2. Health contribution, 9% of the base, meaning gross reduced by social contributions (not the full gross).
3. Tax deductible costs (koszty uzyskania przychodu), a flat amount subtracted from the taxable base. It does not take money out of the pay, it only lowers the tax.
4. Tax advance, calculated from gross reduced by social contributions and tax deductible costs, then lowered by the tax reducing amount if the employee has filed a PIT-2.

This is how the net amount is arrived at: gross minus social contributions, minus the health contribution, minus the tax advance.

Part of the contributions is also paid by the employer, but under an employment contract, on top of the gross amount. These items do not reduce your pay, though they may appear on the payslip.

Tax deductible costs and the tax reducing amount in 2026

The annual limit for costs from one contract is PLN 3000 for a local employee and PLN 3600 for a commuting one. With several contracts, a commuting employee can deduct up to PLN 5400 a year. These amounts do not apply under a civil contract, because costs are calculated as a percentage, as described below.

PIT-2: what the tax reducing amount depends on

PIT-2 is a statement you file with your employer. Without it, the payer does not subtract PLN 300 a month from the tax advance, so the pay is lower, and you recover the difference only in the annual return.

With several contracts, the tax reducing amount can be split between up to three payers:

• with two contracts, PLN 150 each,
• with three contracts, PLN 100 each.

The annual settlement and PIT-11 from several employers are covered in the article on a foreigner's annual PIT settlement.

Net vs gross salary under a civil contract (umowa zlecenie)

Under a civil contract two things change:

• the sickness contribution is voluntary, so without it the social deductions are lower,
• tax deductible costs are calculated as a percentage: 20% of income reduced by social contributions, or 50% when copyright is transferred (with a shared annual limit of PLN 120,000).

At the same gross amount, the net pay from a civil contract therefore comes out differently than from an employment contract. A student under 26 on a civil contract is, as a rule, not subject to ZUS contributions. Whether a given student's status, including a foreigner's, meets the conditions for the exemption is decided by ZUS. A detailed comparison of both forms is in the article civil contract vs employment contract for a foreigner.

Why net pay changes from month to month

The ratio of net to gross is not constant. The most common reasons:

• Hourly rate and working time norm. In 2026 a full-time month ranges from 160 hours (e.g. January, May) to 184 hours (July), so at the same gross rate the pay also changes. Under a civil contract the number of hours follows from the contract and their confirmation, not from the full-time norm.
• Overtime and night work. Allowances increase gross pay in a given month. Under an employment contract the rules are covered in the articles on the overtime allowance and the night work allowance. Under a civil contract such allowances are usually not due unless the contract provides for them.
• Turning 26. The relief for young people exempts income up to the annual limit from tax, but does not exempt from contributions. From the 26th birthday the payer collects the tax advance on general rules, so net pay drops even though gross stays the same.
• A foreigner's tax status. Residents and non-residents are settled differently, covered in the article on a foreigner's tax residency.
• Deductions after net pay is calculated, e.g. a bailiff's seizure or an advance. They reduce the transfer, but do not change the net amount itself.

Online calculator vs payslip

An online calculator assumes a standard situation: a full month, one contract, a filed PIT-2 and basic tax deductible costs. The payslip accounts for your statements, the type of contract, allowances and absences. When the results differ, the payslip is binding, with every item listed separately.

Before signing a contract, ask whether the rate quoted is gross or net and which type of contract it concerns. Ask the same question for each of our job offers.

Frequently asked questions

Is the health contribution calculated from the whole gross salary?

No. The health contribution is 9% and is calculated from gross reduced by the employee's social contributions (13.71% under an employment contract).

What happens if I do not file a PIT-2?

The payer will not lower the monthly tax advance by PLN 300, so you will receive less each month. You recover the relief in the annual settlement.

Can I file a PIT-2 with two employers?

Yes, the tax reducing amount can be split between up to three payers, e.g. PLN 150 each with two contracts. The total cannot exceed PLN 300 per month.

Who can apply the PLN 300 cost instead of PLN 250?

An employee on an employment contract who commutes to the workplace from outside their locality, has filed a statement with the employer and does not receive a separation allowance. Under a civil contract, costs amount to 20% of revenue after deducting social contributions.

This text is for information only and describes general regulations. It is not tax or legal advice.

This text describes the general rules. What you are entitled to depends on your type of contract: an employment contract (umowa o pracę) or a contract of mandate (umowa zlecenie). Your own contract and payslip are what count.