FOR Communication 18/2019: How much money do we have from work?
The non-financial corporate sector is the heart of the Polish economy, where over 70% of the Polish GDP is generated. In 2017, a person working in the sector of non-financial enterprises produced goods and services worth PLN 9.7 thousand on average monthly, but their net remuneration amounted to only PLN 3.1 thousand. What happened to the remaining PLN 6.6 thousand?
- Over PLN 4.1 thousand is the total monthly burden of taxes and contributions per employee, including PLN 2.2 thousand of income taxes and social security contributions. Indirect taxes not included in the value added - VAT and excise tax, which amounted to PLN 1.9 thousand per employee should be added to this.
- PLN 1.7 thousand was the remuneration of the owners for the contributed capital, risk incurred and the business idea itself.
- PLN 1.4 thousand is depreciation and amortization, i.e. costs related to the wear and tear of machinery, equipment or buildings used in production.
- PLN 1.3 thousand is a series of smaller items not subject to separate preparation and publication by the Central Statistical Office (GUS), including changes in inventories or other taxes and charges.
The division of added value between workers, owners and the state raises emotions, but it should be remembered that the most important source of net wage differences between countries is differences in labour productivity. After all, the value of the goods and services they produce has the greatest impact on the wages of the working population, which is why reforms to raise labour productivity are so important.
Author:
Aleksander Łaszek PhD, Chief Economist
aleksander.laszek@for.org.pl
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