PLN 14,000 Severance Pay 2026: Explained

In the event of job loss, the lowest paid employees remain in the worst situation. They usually do not have savings that could serve as a financial cushion in such a situation, and their life situation is rapidly deteriorating. However, the applicable regulations contain regulations that may slightly improve their difficult situation.

• The rules for terminating employment contracts are regulated by law
• Over 14 thousand PLN severance pay for terminating the contract

The rules for terminating employment contracts are regulated by law

An employment relationship can be terminated in various ways. Sometimes the period for which the contract was concluded comes to an end, sometimes the contract is terminated by the employee, and sometimes by the employer. It may also happen that one of the parties to the contract decides to terminate it without notice. The applicable regulations regulate the principles and procedures to be followed in such cases. Special solutions, which may be applicable only in certain situations, are included in the provisions of the Act of March 13, 2003 on special rules for terminating employment relationships with employees for reasons not attributable to the employees. The Act is commonly referred to as the Act on Group Layoffs, as it regulates the rights and obligations of employers and employees in the event of an employer employing at least 20 employees having to terminate employment relationships for reasons not attributable to the employees, by way of notice given by the employer, as well as by agreement of the parties, if, within a period not exceeding 30 days, the dismissal covers at least:
– 10 employees if the employer employs less than 100 employees,
– 10% of employees when the employer employs at least 100 but less than 300 employees,
– 30 employees when the employer employs at least 300 or more employees.
One of the rights provided for in the provisions of this Act is the right to severance pay.

Over 14 thousand PLN severance pay for terminating the contract

In art. 8, the legislator indicated that an employee, in connection with the termination of the employment relationship as part of group layoff, you are entitled to severance pay in the amount of:
1) one month’s remuneration if the employee was employed by a given employer for less than 2 years;
2) two months’ salary if the employee has been employed by a given employer for 2 to 8 years;
3) three months’ remuneration if the employee has been employed by a given employer for more than 8 years.

We recommend: Academy of Labor Law 2025/2026 – 8th edition

The amount of severance pay is determined according to the rules applicable to the calculation of the cash equivalent for annual leave, and its amount may not exceed 15 times the minimum remuneration for work, determined on the basis of separate regulations, in force on the date of termination of the employment relationship.
As is already known, the minimum wage will increase from 2026 from PLN 4,666 in force in 2025 to PLN 4,806. This means that the maximum amount for severance pay paid on account of group layoffs will also increase from PLN 69,990 to PLN 72,090.
Taking into account the rules for calculating severance pay, these amounts will obviously apply only to the best-paid employees. Assuming that the employee was employed by a given employer for over 8 years, to receive this amount of severance pay, his monthly salary would have to be PLN 24,030. What about the lowest paid workers? In their case – depending on the length of employment with a given employer – severance pay will range from PLN 4,806 to PLN 14,418.

We recommend: Calendar 2026

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