Effortless Hiring in Poland

Types of Employment Contracts

Polish labor law recognizes several types of employment contracts:

• Probationary Period Contract: Allows employers to assess an employee's suitability, with a maximum duration of three months.
• Fixed-Term Contract: Limited to a specific duration, with a cap of three successive contracts not exceeding a total of 33 months. Exceeding these limits converts the contract into an indefinite one.
• Indefinite Period Contract: Offers ongoing employment without a predetermined end date.

Onboarding Process

Employers must provide a written employment contract before the employee commences work. This contract should detail:

• Job responsibilities.
• Remuneration.
• Working hours.
• Notice periods.

Additionally, employers are obligated to register employees with the Social Insurance Institution (ZUS) and ensure compliance with occupational health and safety regulations.

Payroll Frequency

• Salaries are typically disbursed monthly, no later than the 10th day of the following month.

Minimum Wage

• As of July 1, 2024, the national minimum wage is set at PLN 4,300 gross per month.

Payroll Deductions

1. Employee Contributions:

• Retirement Fund: 9.76% of gross salary.
• Pension: 1.5% of gross salary.
• Sickness Insurance: 2.45% of gross salary.
• Health Insurance: 9% of gross salary.

2. Employer Contributions:

• Retirement Fund: 9.76% of gross salary.
• Pension: 6.5% of gross salary.
• Accident Insurance: 0.67% to 3.33% of gross salary, depending on industry risk.
• Labor Fund: 2.45% of gross salary.
• Guaranteed Employee Benefits Fund: 0.1% of gross salary.

Personal Income Tax

• Income up to PLN 30,000: 0% (tax-free allowance).
• Income from PLN 30,001 to PLN 120,000: 12%.
• Income above PLN 120,000: 32%.

Corporate Income Tax

• Standard rate: 19%.
• Reduced rate for small taxpayers and startups: 9%.

Types of Leave in Poland

1. Annual Leave

• Employees are entitled to:
• 20 days for employees with less than 10 years of employment history.
• 26 days for employees with 10 or more years of employment history.

Education and previous employment can count towards the employment history.

2. Sick Leave

• Employers pay 80% of the employee's salary for the first 33 days of illness (14 days if the employee is over 50 years old).
• From the 34th day (or 15th for those over 50), ZUS provides sickness benefits.

3. Maternity Leave

• Female employees are entitled to:
• 20 weeks for single births; extended for multiple births.
• Paid at 100% of the average monthly salary, funded by ZUS.

4. Paternity Leave

• Male employees are entitled to:
• 2 weeks, to be taken before the child turns 24 months old.
• Paid at 100% of the average monthly salary, funded by ZUS.

5. Parental Leave

• Up to 41 weeks (extended for multiple births), shared between parents.
• Paid at 70% of the average monthly salary, funded by ZUS.

Mandatory Benefits

1. Social Security: Covers pensions, disability, accident insurance, and sickness benefits.
2. Health Insurance: Provides access to public healthcare services.
3. Employee Capital Plans (PPK): A voluntary employer-sponsored pension scheme.

Additional Benefits

Employers often offer supplementary benefits such as private medical insurance, meal vouchers, transportation allowances, and professional development opportunities.

Notice Periods

• For contracts under probation:

• Three working days for contracts up to two weeks.

• One week for contracts between two weeks and three months.

• Two weeks for contracts of three months.

• For fixed-term and indefinite contracts:

• Two weeks for employment up to six months.

• One month for employment between six months and three years.

• Three months for employment over three years.

Grounds for Termination

• Employers must provide a justified and specific reason for terminating an indefinite contract, which can relate to the employee's performance or organizational changes.
• Fixed-term contracts can be terminated without cause if the appropriate notice period is given.

Severance Pay

• Mandatory in cases of collective redundancies or individual terminations due to reasons not attributable to the employee, applicable to employers with at least twenty employees.
• The amount depends on the employee's tenure:
• One month's salary for up to two years of service.
• Two months' salary for two to eight years of service.
• Three months' salary for over eight years of service.