Draft amendment to the regulation governing business travel allowances in Poland

Work is currently underway at the Polish Ministry of Family, Labour and Social Policy on a draft amendment to the regulation governing allowances for business travel.

Although this legal act formally applies to the public sector and local government budget units in Poland, its effects will also be felt by the private sector. It should be recalled that, under Article 77⁵ § 4 of the Polish Labour Code, the rates specified in the regulation constitute a statutory minimum. No private employer in Poland may set the domestic per diem rate in internal regulations at a level lower than that provided for the public sector. In view of rising living and service costs, the Ministry of Labour has decided to update the rates, which have ceased to reflect current market realities. It is therefore worth preparing in advance for the upcoming changes.

What will change?

The core of the proposed amendment is a significant increase in the base rate of the domestic per diem for business travel in Poland. This single change creates a domino effect, triggering a proportional increase in all related lump-sum allowances and limits. While the percentage mechanisms themselves remain unchanged, the higher base amount will significantly affect the final sums paid to employees.

Comparison of current and proposed rates

Below are the key differences relating to domestic business travel in Poland:

• Domestic per diem:

The draft proposes increasing the base rate from the current PLN 45.00 to PLN 60.00 per day of travel.

• Accommodation lump sum:

As this allowance continues to amount to 150% of the applicable per diem, its value will rise from PLN 67.50 to PLN 90.00.

• Maximum hotel cost limit:

As the limit remains equal to twenty times the per diem rate, the maximum reimbursement for a documented hotel stay will increase from PLN 900.00 to PLN 1,200.00.

• Local transport allowance:

Maintaining this allowance at 20% of the per diem means an increase from PLN 9.00 to PLN 12.00 for each commenced day of travel.

The amendment also covers foreign business travel from Poland. The draft provides for higher per diem amounts and hotel cost limits in selected countries.

In addition, in order to simplify settlements, the accounting currency for certain countries (e.g. Australia, Denmark and Canada) will be standardised. Local currencies will be replaced with widely used currencies such as the euro (EUR) or the US dollar (USD).

Transitional provisions

From a practical perspective, the transitional provisions will be particularly important. These rules will regulate the status of business trips that are already in progress — i.e. trips that begin before the new regulations enter into force but end after that date. In such cases, a two-stage settlement will be required.

For the period of travel up to the day preceding the entry into force of the amendment, allowances will be calculated according to the existing (lower) rates. From the first day of application of the amended regulation, however, the remaining part of the business trip will need to be settled using the new, higher rates.

Entry into force

According to the draft, the amended regulation will enter into force 14 days after its publication in the Polish Journal of Laws. We will keep you informed about further developments regarding this proposal.

Source: The article was created in collaboration with our cooperation partner – sdzlegal Schindhelm Law Office

If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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