Employer of Record in Poland

Hiring in Poland for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Poland in the following three ways:

• Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Poland.
• Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Poland’s labor laws and tax regulations.
• Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Businesses can only operate smoothly in Poland if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Poland below, to avoid any compliance issues.

Employment Contract Requirements

Polish labour law classifies contracts as indefinite, extendable fixed-term (up to 33 months), and probationary (up to three months). Employment contracts must be in writing and include, at a minimum, the following information for legal validity:

• Identification of both parties
• Type of contract
• Date of contract commencement and date of its conclusion (and employment duration for temporary contracts)
• Workplace and type of work
• Base salary as well as other compensation or benefits
• Working hours and annual leave

Onboarding Process

We can help you get a new employee started in Poland quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Poland

In Poland, the typical workweek consists of 40 hours, spanning 8 hours per day and a maximum of 45 hours weekly.

Overtime in Poland

Going beyond regular work hours results in overtime pay, capped at 48 hours per week and 150 hours per year. Overtime pay is 200% for night, Sunday, or non-working day overtime, and 150% for other overtime. Polish employees can choose time off instead of pay.

Probation Period in Poland

Although not obligatory, probation or trial periods are often specified in the employment contract, with three months being a common standard practice in Poland.

Fiscal Year in Poland

1 January - 31 December is the 12-month accounting period that businesses in Poland use for financial and tax reporting purposes.

Payroll Cycle in Poland

The payroll cycle in Poland is usually monthly, with employees being paid no later than the 10th of the following month.

Minimum Wage in Poland

The minimum wage for employees in Poland is typically 23.5 PLN per hour, amounting to ~3,600 PLN per month for a typical 40 hour work week.

Bonus Payments in Poland

There is no legal requirment for 13th-month salary payment in Poland.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 19.48% - 22.14% on top of the employee salary in Poland.

Employee Payroll Tax Contributions

In Poland , the typical estimation for employee payroll contributions cost is around 22.71%.

Individual Income Tax Contributions

Poland uses a 'Pay As You Earn' income tax system with progressive rates from 12% to 32%. All taxpayers in Poland can enjoy a tax-free amount of 30,000 PLN, which results in a yearly tax reduction of 3,600 PLN (300 PLN per month). Additionally, a 4% solidarity tax applies to high incomes exceeding 1 million PLN.

Pension in Poland

Contributions to pension insurance are financed in equal parts between the employer and the employee. Retirement schemes are mandatory in Poland for all workers.

Mandatory Leave Entitlement in Poland

The annual leave entitlement in Poland is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Poland

Polish employees are also entitled to the following public holidays:

Paid Time Off in Poland

In Poland, employees receive 20 days of paid leave per year for their first decade of work, which increases to 26 days after ten years. Any unused leave days carry over to the next year but expire after September 30th of the following year.

Maternity Leave In Poland

Female employees are entitled to fully paid maternity leave periods linked to the number of children born/adopted as follows:

• 20 weeks for the birth of one child/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

Paternity Leave In Poland

Fathers can take two weeks of paid paternity leave within the child's first 24 months after birth or before the child turns seven if adopted. This leave can be split into two one-week periods. Similar to maternity leave, Social Security pays it at 100% of the employee's regular salary.

Sick Leave In Poland

In Poland, sick leave is paid at 80% of the average salary for the past year, except for pregnancy or work-related accidents, where it's fully paid by the employer. For accidents at work or sick child/relative cases, ZUS pays 100%. The amount of sick leave varies based on age and employment contract details:

• Employees under 50 receive up to 33 days of paid sick leave from the employer, and Social Security (ZUS) covers days 34 onwards.
• Those over 50 get up to 14 days paid by the employer, with ZUS taking over from day 15.

Parental Leave In Poland

Employees can take parental leave for a duration ranging from 41 to 43 weeks, depending on the number of children born or adopted simultaneously. Key details regarding parental leave include:

• It can be divided into up to 5 segments and must be used by the end of the calendar year when the child turns 6.
• Employees should submit an application at least 21 days before the desired start date, in writing or electronically.
• For the first 6 weeks (8 weeks for multiple children or three weeks for adopting older children), the leave is paid at 100% of the employee's salary.

Special Event Leave

Employees are entitled to two paid days off for close family member life events, such as a wedding, a childs birth, or a funeral.

Childcare Leave

Employees with children up to 14 years old are entitled to two fully paid days off annually, provided by the employer. Moreover, employees with at least six months of service can take up to three years of unpaid childcare leave until the child turns five (or 18 if the child has a disability).

Disability Leave

Employees are entitled to unpaid military leave to perform their duties.

Disability Leave

A person classified as having a severe or moderate degree of disability is entitled to an additional ten days of annual leave after having worked for at least one year.

Termination Process in Poland

The process of termination varies depending on the specific terms outlined in the employment agreement and any existing collective agreements. It is also determined by the type of contract and the underlying reason for the termination.

Notice Period in Poland

In Poland, the notice period for a temporary or permanent employee is dependent on the employees length of service as below:

• More than 3 years of service: 3 months notice
• 6 months - 3 years of service: 1 months notice
• More than 3 years of service: 3 months notice

Severance in Poland

For employers with more than 20 employees - or for employees who have been dismissed by fault of the employer - the severance pay is dependent on the employees length of service, as detailed below:

• Less than 2 years of employment: 1 months' pay
• Between 2 and 8 years employment: 2 months' pay
• Over 8 years employment: 3 months' pay