Are you an employee in Poland who frequently travels for business purposes? Then you'll be pleased to know that there have been recent updates to the business trip allowance system in the country. In this guide, we will walk you through the latest changes to per diem rates for domestic and international travel, as well as the upcoming modifications to the mileage allowance. So, let's dive in and explore these exciting updates!
Increase in Allowance for Domestic Business Travel
As of 1 January 2023, the domestic travel allowance in Poland has been raised to PLN 45 per day of travel. This marks an increase of PLN 7 compared to the previous rate of PLN 38. The purpose of this increase is to help cover the rising board costs that employees incur during their business trips. This adjustment aims to provide a more fair and adequate allowance for those who frequently travel within the country.
Alongside the per diem increase, other allowances have also been adjusted. The lump sum for accommodation and commuting has been modified to accommodate the changing travel landscape. Let's take a closer look at the rates:
Changes in Rates of Per Diem and Lump Sum Allowances
Allowance Type Until 28 July 2022 Since 28 July 2022 From 1 January 2023
Business Travel Allowance 30 PLN 38 PLN 45 PLN
Accommodation Lump Sum Allowance 45 PLN 57 PLN 67.50 PLN
Lump Sum Transport Allowance 6 PLN 7.60 PLN 9 PLN
As of 1 January 2023, employees are entitled to a reimbursement of documented overnight accommodation costs for one hotel night, which should not exceed 20 times the per diem rate. This means that employees can claim up to a maximum of PLN 900 for accommodation expenses, offering them more flexibility and peace of mind during their business trips.
Business Travel Abroad – Latest Updates
For those embarking on international business trips, changes to per diem rates and overnight stay limits will come into effect on 29 November 2022. These adjustments will be stated in the Annex to the ordinance of the Minister of Family and Social Policy, published on 25 October 2022.
To give you a glimpse of the upcoming changes, here are some examples of per diem rates and overnight limits for popular destinations:
United Kingdom: Per diem - GBP 45; Overnight limit - GBP 220
Czech Republic: Per diem - EUR 41; Overnight limit - EUR 120
These adjustments aim to provide employees with an equitable allowance that reflects the cost of living and services in each specific country.
Upcoming Changes to Mileage Allowance
It's not just the per diem rates that are being revised in Poland. The Ministry of Infrastructure has presented a draft ordinance to modify the existing regulations on using private vehicles for business-related purposes. The proposed changes will impact the mileage allowance, offering a fairer reimbursement to employees who utilize their cars, motorbikes, or mopeds.
The upcoming amendment will introduce new rates per kilometer, as outlined below:
Rates per 1 km
Vehicle Type Now Planned Change
Passenger car (<900 cm3) 0.5214 PLN 0.89 PLN
Passenger car (>900 cm3) 0.8358 PLN 1.038 PLN
Motorbike 0.2302 PLN 0.69 PLN
Moped 0.1382 PLN 0.42 PLN
Though the exact date for the implementation of these new mileage rates remains unclear, the ordinance will come into effect on the first day of the month following its publication. These changes aim to provide employees with a more accurate and justifiable reimbursement for the use of their vehicles during business activities. This is just one of many factors that you should consider when doing market research in Poland before opening a business there.
Summary
As the landscape of business travel evolves, it's essential for employee entitlements to be regularly reviewed and adjusted accordingly. The recent updates to the business trip allowance system in Poland reflect the government's commitment to ensuring fair and reasonable reimbursement for employees' travel expenses. From an increase in the per diem rates for domestic and international travel to the forthcoming adjustments to the mileage allowance, these changes will benefit employees across the country.
Remember, staying updated with the latest regulations surrounding business travel allowances is crucial to ensure you receive the compensation you deserve. So, whether you're embarking on a domestic trip or planning an international journey, rest assured that the Polish government has your back when it comes to meeting your travel expenses. Safe travels!
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