Who is entitled to a separation allowance?

What is a separation allowance?

Separation allowance is a financial benefit that is intended to compensate an employee for the costs and inconvenience of having to work away from his permanent place of residence. Unlike a per diem, which covers expenses related to food and travel, the separation allowance is intended to compensate for the inability to return home every day. To receive it, certain conditions have to be met, and the amount depends on the employer’s internal regulations or legal regulations for certain professional groups (such as soldiers).

The rules for granting an allowance as well as the applicable amounts are set forth in the Decree of the Minister of Labor and Social Policy of May 29, 1996 (Journal of Laws 1996 No. 62, item 289). The allowance is compensatory, i.e. it compensates for stress, impeded contact with relatives and higher living expenses during long trips. 

Who is entitled to a separation allowance? 

To receive a separation allowance, an employee must meet three basic conditions: 

• Long-term separation from family – according to the regulations, the absence from the place of residence must last more than 60 days in a calendar year. 
• Family status – the allowance is available to employees who have a spouse or children under the age of 18. 
• Legal basis in the contract – the allowance must be clearly indicated in the employment contract, salary regulations or collective bargaining agreement. 

It is worth noting that this is not a required benefit and its payment depends on the policy of the employer. Separation allowance applies to occupations that require frequent travel, such as professional drivers, construction workers, assemblers or employees of companies performing contracts in different parts of the country. If the employee has a realistic opportunity to commute to his place of residence at the end of the working day, the allowance will not be paid.

Separation allowance – amount  and calculation method 

The amount of the separation allowance is not strictly defined by the Labor Code, so its determination depends on the regulations in force in a particular sector or at a particular employer. Most often it is 20-30% of the salary base (e.g., base salary). The exact rules are defined in the: 

• collective bargaining agreement (if in force in the company)
• salary regulations
• individual contract with the employee

In practice, the amount is often several tens of zlotys per day, but it can vary depending on the industry, the degree of inconvenience of the business trip and the duration of the business trip.

Example

If the driver’s base salary is PLN 5,000 and the allowance is 25%, he will receive PLN1,250 per month for the period of separation. 

Note that the separation allowance is exempt from income tax up to 20% of the minimum wage (in 2025 that is PLN 933). The excess is subject to standard taxation. 

Separation allowance for the driver in the transport industry 

Professional drivers are one of the groups most often eligible for separation allowance, as their work involves being away from home for long periods of time. They often spend more than 200 days a year on the road.

The issue of the driver’s separation allowance is not explicitly regulated by the Labor Code, so its payment depends on company policy. In the transport industry, a lump sum allowance is often applied (e.g. PLN 80 for each day away from home), due to the mobile nature of the work.  Some companies include it as part of the salary, others treat it as an additional benefit. This is important from a tax point of view.

Separation during a business trip – the legal basis

• Article 775 § 2 of the Labor Code – imposes a requirement on the employer to compensate for prolonged work away from home. 
• 1996 Regulation. – specifies that an allowance is due for separation of more than 2 months in a year. 
• Article 29 of the Labor Code – allows for individual arrangements between the employee and the employer. 

How to apply for a separation allowance: practical tips

• Check the contract and work regulations – ensure the separation allowance is mentioned in them. 
• Submit a request to the employer – send a written request regarding the duration of the business trip. 
• Attach documents – e.g. business travel schedule, confirmation of family (marriage certificate, children’s birth certificates). 

If you are refused, you can take your case to the State Labor Inspectorate or the labor court.

In a nutshell: not everyone is eligible for the allowance

Separation allowance is granted to employees who spend more than 60 days a year away from home due to business trips and have a dependent family. The amount depends on the employer’s policy, but it cannot be lower than that indicated in collective bargaining agreements. Remember that this benefit is not mandatory unless it is based on internal company regulations.