Employer of Record in Poland

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Poland

Poland is a country with a deep history and resilient spirit, reflected in its medieval cities, castles, and tragic past during World War II. Kraków’s Wawel Castle, Warsaw’s Old Town, and Auschwitz-Birkenau memorial are among its significant sites. Polish cuisine, such as pierogi and kielbasa, reflects its hearty and comforting flavors. Poland’s cultural contributions include composers like Chopin and Nobel laureates in literature. The country’s picturesque landscapes range from the Tatra Mountains to the Masurian Lake District.

Languages

Polish

Population

39.8 Million

Capital City

Warsaw

Currency

Polish Złoty (PLN)

Cost of living ranking

59th

VAT (Value Added Tax)

23%

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 Management in

Poland

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

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.

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.

Taxation in

Poland

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%.

Leave in

Poland

Types of Leave in Poland

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.

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.

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.

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.

Parental Leave

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

Benefits in

Poland

Mandatory Benefits

Social Security: Covers pensions, disability, accident insurance, and sickness benefits.
Health Insurance: Provides access to public healthcare services.
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.

Termination in

Poland

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.

ON THIS PAGE

Overview

Hiring

Payroll

Taxes

Leave

Benefits

Termination

Types of Employment Contracts

Onboarding Process

Payroll Frequency

Minimum Wage

Payroll Deductions

Personal Income Tax

Corporate Income Tax

Types of Leave in Poland

Mandatory Benefits

Additional Benefits

Notice Periods

Grounds for Termination

Severance Pay

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