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The Czech government has announced that it will increase the minimum wage by just under 6.2% in 2022.
Key Points:
BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new minimum into account when planning their 2022 budgets.
This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2021 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
The Slovakian government has announced that it will increase the minimum wage by just over 3.5% in 2022.
Copyright © 2021 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com
IMPACT – MEDIUM
The Polish government has announced it will update its testing requirements for non-Schengen Area travelers on Dec. 15.
Additional Information: Individuals who are traveling to Poland for no more than 24 hours and have a ticket confirming their departure within this period are not subject to the 14-day quarantine. Travelers Botswana, Eswatini, Lesotho, Mozambique, Namibia, South Africa, and Zimbabwe are not eligible for the quarantine waiver.
BAL Analysis: The new testing requirements and quarantine makes travel to Poland more difficult. The response to the COVID-19 pandemic continues to develop, and BAL will provide additional updates as information becomes available.
The Polish government has published a draft law to improve the application processes for temporary residence and work permits.
Under the draft law:
Additional information: More information on the proposed changes to residence and work permit processes can be found here. The Polish government has yet to announce when the aforementioned changes would be implemented.
BAL Analysis: If the law is finalized, foreign nationals would be able to get temporary residence or work permits with less difficulty due to the streamlined processes. BAL will continue to monitor these proposed amendments to the residence and work permits and will provide more information as it becomes available.
Copyright © 2021 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The Polish government has updated its rules for foreigners entering the country for business purposes.
Additional information: The letter requirement does not apply to foreign nationals from other Schengen Area countries or to those who were previously allowed to enter Poland without having to acquire a special recommendation from the Minister of Foreign Affairs.
BAL Analysis: The new border crossing rules make it easier for many foreign nationals to enter the country for business travel. The change does not affect existing entry requirements or bans.
What is the change? Poland has increased the minimum salary threshold for EU Blue Cards to 7,751.21 zloty (about $2,011) per month.
Analysis & Comments: The new salary threshold is part of an annual average income review published by the Polish Main Statistical Office. The new salary minimum represents a 5% increase over last year’s threshold, and employers should plan accordingly.
Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network ofmember firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States, which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2021. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Poland has set new minimum salary thresholds for foreign nationals working on local contracts, EU ICT permit holders, and non-EU posted workers.
What does the change mean? Beginning Jan. 1, foreign nationals working on local contracts must be paid 2,800 PLN gross per month. EU ICT permit holders and posted workers must be paid according to the applicable minimum in their administrative region (voivodship); new thresholds for these workers took effect Nov. 18. Income minimums for residence permit holders have not changed.
Additional Information: The salary minimum for local employment contracts affects foreigners hired locally throughout Poland, i.e., those holding Type A work permits or residency permits with right to work. The minimum salary threshold for posted workers (work permits C, D and E for assignments) and EU ICT permit holders depends on the province where the applicant applies for the permit. The minimum income thresholds for residency permits apply to all foreigners applying for residency permits, including dependent family members.
528 PLN per person for a multi-person household (unchanged)
Analysis & Comments: Employers should be sure to account for the new salary minimum when planning their budgets. Deloitte will continue to follow developments in Poland and will update clients once new EU Blue Card minimums are announced.
Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
The Polish government has provided additional exemptions for foreigners in certain visa categories who may work in Poland without the need to obtain a work permit document.
Work permit exemptions are now available to:
Background: The Polish government previously provided incentives for Belarussian IT sector workers and businesses.
Analysis & Comments: The expansion of work permit exemptions for certain categories of visas held by foreigners or healthcare workers is a continuation of the Polish government’s “Solidarity with Belarus” plan, and a response to the urgent need for health care personnel during the COVID-19 pandemic. The response to COVID-19 continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.
The Polish government is providing new incentives for Belarussian IT sector workers and businesses.
Additional Information: A hotline has been set up for Belarus citizens wanting to work in Poland.
Analysis & Comments: The easing of requirements for Belarus citizens in Poland is a response to geo-political conditions in Belarus, however, it has real immigration implications that could make it easier for Belarussian IT sector workers and entrepreneurs to relocate to Poland.
IMPACT – HIGH
Poland continues to take steps to reopen international travel and resume visa services abroad, while restricting entry to foreign nationals of countries with a high rate of COVID-19 infection.
Background: Foreign nationals were banned from entering Poland in March because of the COVID-19 pandemic. In June, Poland reopened its border to travelers from other EU nations. Citizens of the EU can travel freely to Poland and do not have to quarantine upon arrival.
Analysis & Comments: The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.