Social security: 19.21% - 22.14%
Employee capital plans (a mandatory employee long-term retirement savings program): 1.5%
Social security: 13.71%
Healthcare: 9%
Solidarity tax: 4% for all Polish residents who earn more than 1 million zł
| GROSS INCOME | PROGRESSIVE TAX RATE |
|---|---|
| Up to 120,000zł | 12% |
| Over 120,000zł | 32% |
Paid time off: 20-26 working days, dependent on tenure + 13 public holidays
Paternity leave: 2 weeks
Sick leave: 182 days. First 33 days payed by the Poland employer and the rest by the Social Security Institute
Parental leave: up to 41 weeks for one child and up to 43 weeks for two children
Maternity leave: 20 weeks for the birth or adoption of one child, 31 weeks for two children, 33 weeks for three children, 35 weeks for four children, 37 weeks for five or more children
While there are generally four ways of employing people across borders, not all are legal or sensible. Here is an overview of how to employ a worker in Poland, outlining the potential cons.
While the person is in Poland, they are employed and payrolled directly by the company’s HQ entity
Cons: This may appear attractive, but it generally isn't legal in the long term. Paying the employee's salary won't be possible if the person is not a tax resident in the HQ country.
People are locally registered as sole traders or limited liability company owners in Poland and invoice for their work. There is no direct employment relationship.
Cons: In Poland, this is not a compliant or legal way to engage full-time workers who work solely for your company. There will be challenges in attracting and retaining talent.
The company sets up as a fully-compliant local employer. This often involves setting up a local entity and local tax registration.
Cons: Expensive, time-consuming, high-level of complexity. Unknowns around how obligations and costs will evolve over time. There will be a need to stay on top of changes in regulations.
Employment is handled by a platform that specialises in employing people on behalf of customer companies. The Employer of Record, which in Poland requires a temp agency licence, helps to hire and pay employees.
Cons: For some countries, the ongoing costs may be higher than direct employment. Some education is needed to inform employees about how the employment relationship will work.
Setting up a local company in Poland is time-consuming and complicated. That is further complicated by the monthly activities - payroll needs to be calculated and run every month, taxes filed, employee benefits extended, change of rules and regulations followed. Here is an overview of everything you will find yourself needing to do.
As with every other country, there are certain costs associated with employing a worker in Poland that come on top of the gross salary you are offering. A Poland employer must contribute to social security, which covers pension and disability insurance, accident insurance, labour fund, employee guaranteed benefits fund, as well as the long-term retirement savings program. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
In Poland, the model for employing a worker on behalf of another requires a temp agency licence. Employing someone through the temp agency means that Boundless is the legal employer of the individual, as far as the Polish government, tax, and employment authorities are concerned.
We are responsible for:Any new employee that is locally employed through a temp agency gets full employment rights and benefits as specified in Polish employment law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more. All Poland-based employees receive healthcare through the public healthcare system.
In Poland, both employers and employees have to pay taxes. For employers, these include social security, which covers pension and disability insurance, accident insurance, labour fund, employee guaranteed benefits fund, as well as the long term retirement savings program. For employees, these are social security contributions, solidarity tax, and healthcare, as well as and income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.
Master the complexities of global employment and ensure a seamless employment experience for your team.
Talk to us
