Poland
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Introduction
General Overview & Economic Facts
- Poland, officially the Republic of Poland, is a country in central Europe
- It spans an area of 312,696 km2 (120,733 sq mi) and has a population of approximately 38 million
- Poland is a developed country and has an extremely high standard of living, safety and economic freedom ranking 35th on the Human Development Index
- Poland’s economy is an industrialized, mixed economy with a developed market
- Poland has the 20th largest economy by nominal GDP and 20th by PPP
Why Employ In Poland?
- The main exports from Poland are machinery, electronic equipment, vehicles, furniture, and plastics
- 9.8% of the population is between the ages of 15 and 24 years, with 43.33% of the population being between the ages of 25 and 54. Poland has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview of the Labour Law
- The Labour Code (Kodeks Pracy) is the main source of labour regulation in Poland
- The code sets out the conditions under which work can be carried out in Poland, specifically working hours, vacation and leave days, trade unions and workers councils, termination and notice periods
- The Polish Constitution also sets out the rights and freedoms of employees
- Polish labour law protects both employers and employees
Fun Country Facts
- Mushroom foraging is a popular activity in Poland
- Traditional Polish last names change depending on gender
- In Poland, everyone has a special holiday for their name
Why Use Playroll Services For Poland?
- Employing in Poland requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Poland
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Pension Insurance
Calculated on employee’s annual income. Calculated on a maximum salary of PLN 177,660.00
9.76%
Medical
Employers do not have to provide private health insurance to their employees (although it is possible to do so)
Accident Insurance
1.67%
Less than 9 employees employed
0.67 – 3.33%
9 or more employees employed
Varies based on industry
State Fund for Rehabilitation of the Disabled (PFRON)
- 40.65% of the average salaries and the difference between the number of employees guaranteeing that 6% of the employed are disabled and the actual employment of people with disabilities
- Employers with more than 25 employees who do not employ at least 6% of people with disabilities.
Disability Insurance
Calculated on employee’s annual income. Calculated on a maximum salary of PLN 177,660.00 per year
6.50%
Labour Fund
2.45%
Employees' Guaranteed Benefits Fund
0.10%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Pension Insurance
Calculated on employee’s annual income. Calculated on a maximum salary of PLN 177,660.00
9.76%
Health Insurance
9.00%
Disability Insurance
Calculated on employee’s annual income. Calculated on a maximum salary of PLN 177,660.00 per year
1.50%
Sickness
2.45%
Solidarity Levy
4.00%
Decreasing Tax
Calculated on total monthly earnings. This is a personal allowance for all taxpayers whose annual income does not exceed PLN 127,000. This is a credit against personal income tax (i.e. not a deduction from the taxable base)
Earning bracket
0.00 – 8,000.00
PLN 1,360.00
8,000.00 – 13,000.00
PLN1,360 – [PLN834,88 x (annual taxable income – PLN8,000)/ PLN5,000]
13,000.00 – 85,528.00
PLN 525.12
85,528.00 – 127,000.00
PLN 525,12 – [PLN 525,12 x (annual taxable income – PLN85,528)/ PLN41,472]
127,000.00 or more
PLN 0.00
Income Tax
Income bracket per annum
0.00 – 30,000.00
0.00%
30,000 – 120,000.00
17.00%
120,000 or more
PLN 15,300.00 + 32.00% surplus over PLN 120000.00
Employment Terms
General
Minimum Wage
- PLN 2,800.00 per month and PLN 33,600.00 per year
Working Hours
- Maximum 8 hours per day and 40 hours per week
- Minimum 15-minute meal interval. It is possible to offer a 60-minute, unpaid meal interval
- Typical working hours are 08h00 to 16h00, Monday to Friday
Overtime
- Maximum working hours of 8 overtime hours per week and 150 per year
Notice Period
- Employed between 0 and 6 months- 2 weeks’ notice
- Employed between 6 and 36 months- 4 weeks’ notice
- Employed for 36 months- 12 weeks’ notice
Severance Pay
- Employed between 0 and 24 months- 1 months’ pay
- Employed between 24 and 96 months- 2 months’ pay
- Employed for 96 months- 3 months’ pay
Probation Period
- There is no statutory probation period
- Should a probation period be stipulated in the employment contract, it may not exceed a period of 3 months
Bonus
- There is no statutory bonus
- It is common to provide bonuses
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- January 6th – Epiphany
- April 17th – Easter Sunday
- April 18th – Easter Monday
- May 1st – Labour Day
- May 3rd – Constitution Day
- June 5th – Whit Sunday
- June 16th – Corpus Christi
- August 15th – Assumption Day
- November 1st – All Saints’ Day
- November 11th – Independence Day
- December 25th – Christmas Day
- December 26th – 2nd Day of Christmas
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- Employed between 0 and 10 years- 20 days per year
- Employed for 10 or more years- 26 days per year
Sick Leave
- Paid leave
- Paid by employer
- Age 50 or younger- 33 days per year
- Age 50 or older- 14 days per year
- A maximum of 182 days (or 270 if the sick leave is caused by tuberculosis or occurs during pregnancy) for all employees
Maternity Leave
- Paid leave
- Paid by Social Security
- 1 child born- 20 weeks
- 2 children born- 31 weeks
- 3 children born- 33 weeks
- 4 children born- 35 weeks
- 5 or more children born- 37 weeks
Paternity Leave
- Paid leave
- Paid by Social Security
- 14 days
Parental Leave
- Paid leave
- Paid by Social Security
- 1 child born- 32 weeks
- 2 or more children born- 34 weeks
Paid Family Leave (PPL)
- Paid leave
- Paid by employer
- Employee is getting married, birth of a child, funeral of a close family member- 1 day per year
- Employee’s child is getting married, the death and funeral of the employee’s close family member or other person supported or directly cared for by the employee- 2 days per year
Carer’s Leave
- Paid leave
- Paid by Social Security
- Maximum of 60 days per year
Adoption Leave
- Paid leave
- Paid by Social Security
- 1 child born- 20 weeks
- 2 children born- 31 weeks
- 3 children born- 33 weeks
- 4 children born- 35 weeks
- 5 or more children born- 37 weeks
Childcare Leave
- Unpaid leave
- Employees may apply for a Family Allowance
- 3 years, until child is 4 years old, if employed for at least 6 months