Poland is one of the most preferred outsourcing destinations in Europe and for good reasons.
But before you set up an office in the country, you must do the math to ensure a profitable transition. For example, to create accurate financial estimates and determine an ideal team size, you must have a clear idea of the average salary in Poland.
The quick answer is: in 2021, the average salary in Poland is 7,560 PLN (Polish Zloty) per month. It’s roughly around USD 1,945, according to the exchange rates in July 2021.
However, you may need a more in-depth understanding to make an informed decision on outsourcing and employee salaries.
In this article, we’ll cover many vital statistics and trends related to the average salary in Poland, along with the three key benefits of outsourcing to the country.
This Article Contains:
(click on the links below to jump to a relevant section)
- Statistics and Trends Around Average Salary in Poland
- 3 Key Benefits of Outsourcing to Poland
Let’s start crunching some numbers.
Statistics and Trends Around the Average Salary in Poland
The average or mean salary is usually calculated by adding salaries for a select group of employees and dividing the sum by the number of employees.
A country’s average salary is usually a good indicator of how much an employee typically earns.
According to Salary Explorer, a Polish employee earns an average salary of 90,800 PLN per year. As per the latest exchange rate in July 2021, this amounts to USD 23,416 or 19,850 EUR/year.
However, businesses generally target a ‘middle of the market’ compensation for their workforce after considering factors, such as:
- The type of industry.
- The type of work — full-time, contractual, remote, etc.
- Employees’ experience level.
- Employees’ education.
- The region where the employee is based.
As a result, it’s more apt to look at average salaries in Poland from different perspectives. It’ll help you determine how much you should pay your employees.
Let’s start by checking how employee salary translates to the actual standard of living and purchasing power in Poland:
A. Gross vs. Net Salary
Employers and employees should note that the salary figure mentioned above is the average gross salary.
It’s the taxable income that includes any benefit and allowance (transport, insurance, etc.) that the employer offers on top of the basic salary.
However, an employee usually receives a lower net salary after a mandatory tax deduction.
Polish employees can calculate their net earning by factoring in social security contributions, income tax, pension contributions, etc.
An average net salary adjusted for living cost using purchasing power parity (PPP) is a more accurate measure of an employee’s disposable income. PPP helps measure absolute purchasing power by considering factors like cost of living and inflation rates among different countries.
As per the IMF (International Monetary Fund) database, the average monthly wage (adjusted for PPP) in Poland is USD 2,225 per month. In contrast, the average wage in other EU (European Union) countries like Germany and France exceeds USD 3,000 per month.
For Polish families with multiple income streams, the net average household income per capita is USD 19,814 per year.
In comparison, the average for OECD countries (Organisation for Economic Co-operation and Development), which includes Germany and France, is much higher at USD 33,604 per year.
Next, let’s check out the average salary range and median salary in Poland.
B. Median Salary in Poland
The per capita income in Poland ranges between an average minimum salary of 1,910 PLN and an average maximum of 33,800 PLN.
The median base salary in Poland is 7110 PLN or USD 1833 per month or (according to the latest exchange rates).
The median salary is a middle value in a range of salaries. In other words, half of the Polish employees earn less than 7110 PLN each month, while the other half earn more.
Unlike an average salary, the median salary is not affected by disproportionate higher or lower salaries. It makes it a more neutral indicator of the central tendency in salary distribution.
C. Average Salary in Different Sectors
Here are the average salaries in Poland based on the type of industry:
|Industry||Average Monthly Gross Salary|
|Information Technology||7,590 PLN|
|Real Estate||8,560 PLN|
|Media / Broadcasting||6,960 PLN|
|Government and Defence||8,270 PLN|
D. Average Salary in Major Polish Regions
Some of the major business centers in Poland include Warsaw, Gdańsk, Kraków, and Katowice.
Here’s the data on the average income in the major Polish regions. Both outsourcing businesses and expats should carefully consider these values before moving to a region.
|City||Average Monthly Salary|
E. Salary Comparison By Experience and Education Levels
Experience and education levels are the two of the most important factors that differentiate between the salaries offered to employees doing similar jobs.
As a rule of thumb, an employee’s average income increases with experience and higher education.
According to a salaryexplorer.com survey, employees with two to five years of experience enjoy a 32% salary increase over freshers and juniors across industries.
Similarly, certificates or diploma holders may earn 17% more salary than high school graduates for doing the same job. The salary gain is even higher at 29% for employees with a master’s degree than a bachelor’s.
Note: The exact salary changes based on experience and education may vary with location and the job titles.
F. Minimum Wage Salary
The minimum wage is the lowest remuneration that an employer must pay its full-time contractual workers.
To safeguard the interest of the workers, an employment contract in Poland must specify a wage that’s equal to or higher than the minimum wage.
Poland offers one of the highest minimum wage salaries in Central and Eastern Europe and ranks among the top thirty countries in the world.
In 2021, the Polish government updated its minimum wages for local hires and civil contract workers. It’s currently 2800 PLN gross per month for local hires, which roughly amounts to 609 Euros or USD 717, as per the exchange rates in July 2021.
It’s a 7.6% increase over minimum wage salary in the previous year.
For a civil contract worker, the minimum hourly rate is 18.3 PLN per hour (USD 4.7). For reference, the lowest minimum wage in the USA is USD 7.25 per hour.
Employers must note that minimum wage should be paid in Polish Zloty (PLN), and employees must be on local payroll.
G. Average Annual Increments
A Polish employee, on average, gets an 8% raise every 17 months. In comparison, the world average is a 3% increase in salary every 16 months.
The average annual increment rate in Poland currently stands at 6%.
1. Average Annual Increment by Industry
Here’s a breakdown of the annual salary increment rate based on the type of industry:
|Industry||Average Annual Increment|
2. Average Annual Increment by Experience
Here’s how the annual salary increase rate in Poland changes with the experience levels:
|Experience Level||Average Annual Increment|
H. Average Salaries for Top Professions
IT and healthcare professionals such as software developers and surgeons earn some of the highest salaries in Poland.
Here are the average salaries in Poland for different professions in 2021:
|Profession||Average Annual Salary|
|Computer Programmer||136,964 PLN|
|Data Analyst||140,507 PLN|
|Chief Executive Officer||393,093 PLN|
|Civil Engineer||124,336 PLN|
3 Key Benefits of Outsourcing to Poland
Many factors make Poland an ideal European country to outsource your business operations.
Let’s explore them in-depth.
1. Fast-growing Economy
The Polish economy has been recording stable growth in recent years.
Its GDP (gross domestic product) per capita at PPP has been growing at an average of 6% per annum for the last 20 years.
It was one of the least affected European economies during the 2007-08 economic recession.
Even during the Covid-19 pandemic, the Polish economy has managed to stay resilient and evade the crisis with minimal impact.
According to the Central Statistical Office of Poland (GUS), the Polish GDP shrunk by just 2.7% during the pandemic. It’s significantly less than the average GDP contraction in OECD countries, which stands at 5.5%.
Additionally, the unemployment rate in Poland is 6.1%, as compared to the OECD average of 6.5%.
And the World Bank classifies Poland as a ‘high-income’ economy, currently ranked 22nd worldwide (based on GDP). Moreover, Poland also performs well on the ease of doing business index and ranks at 40 (Statista, 2020) in the world.
2. Robust Infrastructure
Poland is a leading IT outsourcing destination in the world. The country has more than 50,000 IT companies, the majority of which have started operation post-2011.
One of the biggest reasons for this massive surge is superior technical and logistics infrastructure.
All major Polish business centers are well-connected by air, road, and rail. Polish cities are also within close reach of major European financial centers like London and Paris.
As for digital connectivity, Poland is well-equipped with fast internet services that help businesses manage their teams and carry daily operations effectively.
IT hubs such as Warsaw, Kraków, and Wroclaw have many technology and industrial parks that offer world-class business facilities. The outsourcing companies in these districts efficiently serve clients from the USA and other European countries.
You’ll be spoilt for choice if you are looking to outsource IT operations to Poland — as of 2021, more than 600 companies offer custom software development services in Poland.
3. Skilled Talent Pool
Most Poles have access to high-quality education and are proficient in the English language.
Coders and programmers from Poland are considered some of the best in the world and often score big in international coding competitions and tests.
Besides, these professionals usually have a strong work ethic. They work with a sense of ownership and accountability which makes them highly sought-after. In fact, the way Poles manage their work is often compared to advanced economies like the UK, US, Germany, etc.
The fast-growing Polish outsourcing industry is witnessing a massive influx of companies from around the world.
But before you set up a team in Poland, you must carefully analyze how much you should be paying your employees. You can use the average salary stats and trends shared in this article to do accurate budgeting and offer competitive salaries to your workforce.
Andy is a technology & marketing leader who has delivered award-winning and world-first experiences.