July regulatory changes – what awaits us?

As of July 1, 2024, significant changes to the law come into force that will affect the lives of employees, entrepreneurs and foreigners. We present the most important of them:

1. change in the minimum wage

As of July 1, the minimum wage will increase to PLN 4,300 gross, and the hourly rate to PLN 28.10. This is the second minimum wage increase this year, which will affect more than 3 million people. Compared to 2014, the minimum wage will be higher by PLN 2620, an increase of 156%.

The increase represents an increase of PLN 700 over the amount on July 1, 2023, which translates into a 19.4% increase. The minimum hourly wage will increase by PLN 4.6, or 19.5%.

After the July increase, other benefits calculated based on the minimum wage will also increase, such as the allowance for night work, demurrage pay and severance pay for mass layoffs.

It is also worth mentioning that the Council of Ministers has already adopted proposals for the minimum wage for 2025. As of January 1, 2025, the minimum wage is to be PLN 4626 gross, an increase of 7.6%.

2 Higher Social Security contributions of new companies

As of July 1, the changes will also include new entrepreneurs benefiting from preferential Social Security contributions. The amount of these premiums is directly related to the amount of the minimum wage, so as the minimum wage increases, the preferential ZUS also increases.

What are preferential ZUS premiums?

Preferential Social Security premiums are a relief for new entrepreneurs, which involves paying lower Social Security premiums for the first 24 months of doing business. This allows budding entrepreneurs to lower their costs and make it easier to start a business.

Minimum wage increase and Social Security contributions

As of July 1, 2024, the minimum wage increases to PLN 4,300 gross, which directly affects the amount of preferential ZUS contributions. Preferential Social Security premiums are calculated as a percentage of the minimum wage, so an increase in the minimum wage will automatically raise these premiums.

3. New rules for residence and employment of Ukrainian citizens

Changes in July will also affect the employment of foreigners, especially citizens of Ukraine. As of July 1, 2024, most of the regulations contained in the Law on Amendments to the Law on Assistance to Citizens of Ukraine in Connection with the Armed Conflict on the Territory of Ukraine and Certain Other Laws will come into force. The new regulations will regulate the further stay and work of Ukrainian citizens in Poland, the possibility of staying in collective accommodation facilities and the required qualifications of doctors and nurses.

Longer stay and work

One of the key changes is the extension of the possibility of legal residence and work for Ukrainian citizens in Poland. The previous regulations were time-limited, and the new law provides for a longer period during which Ukrainian citizens can stay and work in Poland. This is intended to provide stability and security for those who had to leave their country due to the armed conflict.

Employment facilitation

The new regulations also introduce facilitations in the procedure for hiring Ukrainian citizens. Employers will be able to hire workers from Ukraine more quickly and easily, to meet the needs of the labor market and support the economy. Details of the hiring procedures will be specified in the relevant regulations, which will be published soon.

4 DAC-7 Directive

The EU’s DAC-7 Directive, coming into effect on July 1, 2024, introduces new tax rules for reporting sales on digital platforms such as Allegro, OLX, Vinted and Booking. The directive imposes reporting obligations on these platforms aimed at tightening the tax system and reducing the number of unreported business activities.

Operators of digital platforms will be required to collect and report to the National Tax Administration (KAS) information on sellers transacting through them. The new regulations cover transactions involving the sale of goods, provision of services, provision of means of transportation and real estate.

While the regulations may raise concerns among online sellers, their main goal is to combat tax fraud and unify tax systems across EU member states. Digital platforms will be obliged to report data on sellers. Small sellers with fewer than 30 transactions in a year and total remuneration of less than €2,000 will not be subject to the new reporting obligations.

In conclusion, July brings several important regulatory changes that will have a significant impact on employees, entrepreneurs and foreigners. It is worth keeping abreast of the new regulations to properly prepare for the upcoming changes.

If you want FA Partners’ accounting and financial office to take care of your company – contact us