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Country Guide

Poland

Hiring employees in Poland a glance

CURRENCY
Polish Złoty (zł)
WORKING HOURS
40 hours
PUBLIC/BANK HOLIDAYS
13 days per year
CAPITAL
Warsaw
LANGUAGE
Polish
REMOTE WORKERS
813,700
MINIMUM HOURLY SALARY
3,010zł
TAX YEAR
1st Jan - 31st Dec
DATE FORMAT
DD/MM/YYYY
MISCLASSIFICATION PENALTIES
Fine of 1,000zł to 30,000zł (€220 to €6,650) for violation of workers' rights, including misclassification
FUN FACT
Traditional Polish surnames change depending on gender.

Employer tax: 

19.5% - 28.5%

Social security:  19.21% - 22.14%

Employee capital plans (a mandatory employee long-term retirement savings program): 1.5%

Employee tax: 

22.7% - 57.1%

Social security: 13.71%

Healthcare: 9.76%

Solidarity tax: 4% for all Polish residents who earn more than 1 million zł

Income tax:
 
GROSS INCOMEPROGRESSIVE TAX RATE
Up to 120,000zł12%
Over 120,000zł32%
  
  
  
  
  

Poland Employment Cost Calculator

Use our handy calculator to understand what are all the employment costs you have to consider in Poland.

Provide us with some extra details and we will send you a full breakdown of the salary costs.

Employer of Record in Poland

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An Employer of Record (requiring a temp agency licence in Poland) is the legal employer of a worker. As such, the Employer of Record takes care of all Polish compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

the employer of Record is responsible for:

Ensuring their employment is compliant with local employment laws
Processing local payroll
Filing employment related taxes and returns
Issuing payslips to the employee
Distributing salary payments

How a temp agency in Poland works

COMPANY

Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

BOUNDLESS

Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

EMPLOYEE

The third party to the employment contract, the employee, fulfils all of their obligations as a worker for the company.

Statutory Benefits in Poland

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Medical examination
Occupational safety and health training
Company social benefits fund & holiday funds
Employee capital plans
Other benefits for specific types of work

Common Non-mandatory Benefits in Poland

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Additional days off
Transportation costs
Additional PPK contribution
Supplementary pension
Supplementary health insurance
Supplementary life insurance
Cash bonus
ZFŚS
Fitness allowance

Employee Rights and Protections

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Employment contract signed by both the employer and the employee
Payslip
Health and safety
Medical examination
Equal treatment
Protection against unfair dismissal
Union
Protection from discrimination
Protection from harassment

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: 32-34 weeks 

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

Probationary Period

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The maximum permissible probationary period in Poland is three months. The employer has no obligation to continue the employment after the probationary period has elapsed.

Payment Frequency

Most Polish companies pay employees on a monthly basis, but it is also legal to pay employees daily or weekly.

End of Employment

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There are four ways of ending employment:

1. With the agreement of both parties

2. A declaration by either the employer or the employee, observing the appropriate notice period

3. A declaration by either the employer or the employee, without following the proper notice period

4. After the expiry of the contract term (for probationary or fixed-term contracts)

Once employment ends, the employer must issue a Certificate of Employment to the employee and deregister them from the Social Security Authority (ZUS). The final payment is due in the next pay cycle, as usual.

Terminating an indefinite period employment contract with notice must state the valid reasons for ending it and is subject to trade union control (if the employee is covered by trade union protection).

Frequently Asked Questions

What are my options if I want to hire a worker in Poland?

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.

 

HQ country employment & payroll

While the person is in Ireland, 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.
 
Independent contractor agreements
 
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.

 

Direct local employer setup

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.

 

Partnering with an Employer of Record Poland (Temp agency in Poland)

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.

How long does it take to set up a company in Poland?

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.

Can I employ people as independent contractors in Poland?

While many employers practice employing remote workers as independent contractors, it's a bad practice. If an individual is giving their full and undivided attention to your company in Poland, treating them as an independent contractor is a likely breach of Polish employment laws and of those in your country.
 
Your company could be liable for fines on owed holiday pay, sick pay, social welfare payments, paternity benefit, maternity benefit, or other legal measures. Since the individuals you are working with do not receive the benefit of local employment laws and protections that are often afforded to people working full-time hours.
 

What does HR compliance mean in Poland, and why does it matter?

When you hire employees in Poland, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws and regulations regarding employment and work practices. Complying with local employment law in Poland is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but to minimise your risk of liabilities as an employer. Being compliant means respecting and following all local labour laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, working hours regulations.

How much does it cost to employ someone in Poland?

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.

What does Employer of Record mean in Poland?

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:
  • informing you about any pre-employment requirements
  • ensuring their employment is compliant with Polish employment law
  • informing you about the length of the maternity leave, paternity leave, public holidays, illness benefits, medical benefits
  • providing a locally compliant employment contract
  • processing local payroll
  • filing employment-related tax returns
  • issuing payslips to the employee
  • distributing salary payments
  • payments to the local tax authorities
Customers that work with a temp agency in Poland for local employment are responsible for:
  • sourcing and recruiting their own workers
  • managing the employee’s day-to-day work load
  • contributing to the personal / professional development of the employee through their work
  • following any guidance we give on employment and HR best practices or legal obligations in Poland, such as the employment contract, public holidays, annual leave, sick leave, maternity and paternity benefits, probationary periods, overtime pay, statutory redundancy payments, liability insurance and many others
  • ensuring that payroll bills relating to their team are paid to Boundless before the cut-off point in each pay cycle

Who is responsible for filing and paying employees' taxes and social insurance contributions in Poland if employing through a temp agency for local employment?

Boundless as the temp agency in Poland that employs workers, files all pertinent taxes and social contributions as they relate to the compliant employment of an individual in Poland.

How does Boundless as an Employer of Record Poland ensure HR compliance in Poland?

We carefully choose employment lawyers or advisories to partner with in each country we operate in, including Poland. They ensure the Poland employment contracts, and any other relevant documents required for new employees comply with the local jurisdiction. We have thorough discussions on specific norms such as payroll services, social protection, data protection, notice period or work-from-home regulations. Whenever a potentially sensitive issue arises in Poland, our internal team contacts the relevant firm to ensure all steps are taken to resolve it promptly.

What are the legal responsibilities of a company when they use the services of a temp agency for employment in Poland?

The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues.
 
Boundless ensures compliance with Irish-specific procedures, practices and labour laws while employing people and teams on behalf of the company.

Do employees get all their rights and benefits when employed through a temp agency for employment in Poland?

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.

What taxes do I need to pay in Poland?

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.

Choose Boundless as your employment partner in Poland
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