Coal Allowance Calculator

A coal allowance is a benefit in kind (heating coal) or its monetary equivalent for mining and energy sector employees and retirees, granted under collective bargaining agreements.

Under art. 21(1)(11a) of the Polish PIT Act, the monetary equivalent of a coal allowance is exempt from income tax up to 2000 PLN per year. Any excess is subject to PIT.

The entitlement depends on the company's collective agreement. Active employees typically receive 2–4 t/year; retirees 1–3 t/year. Exact amounts are set in company regulations.

The monetary equivalent is generally exempt from ZUS contributions up to the tax exemption limit. Any excess may be subject to contributions — this depends on company regulations.

Polish heating coal prices in 2026 typically range from 600–1000 PLN/t depending on grade. The employer or collective agreement often specifies an internal price for calculation purposes.

Yes — retirees from mining companies often retain the right to a coal allowance or its equivalent under company and industry agreements.

The coal allowance is a sector-specific benefit paid regularly (usually annually) regardless of seniority. A jubilee award is paid after a set number of years of employment and is a one-time payment.

Many companies allow employees to choose. However, for logistical reasons, an increasing number of firms pay only the monetary equivalent.

If the monetary equivalent is paid regularly (monthly or quarterly), it is included in the holiday pay base as a variable component.

The right to a coal allowance is tied to the specific company's collective agreement. Moving to an employer outside the mining/energy sector ends the entitlement.