How to hire and pay employees in Poland

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Poland Facts and Stats

Currency

Polish ZÅ‚oty (PLN)

Employer Costs

Estimated at 20.48% of employee’s salary

Languages

Polish is the official language of Poland.

Population

The population of Poland is 38.4 million

Payroll frequency

Employees in Poland are typically paid monthly.

Hiring

Grow your team in Poland

No entity, no problem

To start growing your team in Poland, you must establish a local entity – including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Poland

Hiring employees in Poland presents both benefits and challenges. On the positive side, Poland boasts a well-educated and skilled workforce, particularly in fields such as IT, engineering, and finance, due to its strong emphasis on higher education and vocational training. The country’s central location in Europe offers strategic advantages for businesses seeking access to both Western and Eastern European markets. Additionally, Poland has relatively competitive labour costs compared to other Western European countries, and its membership in the European Union provides businesses with access to a large consumer base and various EU funding opportunities.
However, there are challenges to consider. Poland’s social security contributions and labour costs can be high, with mandatory employer contributions adding a significant percentage to the total employment cost. The labour market is also subject to complex regulations, which can create administrative burdens for employers. Additionally, while Poland has a favourable business environment, the bureaucratic processes for setting up and managing employment can be cumbersome. Overall, while Poland offers a skilled workforce and strategic location, navigating the regulatory and cost-related aspects requires careful planning and management.

Why Poland is good for remote workers

Employers should consider hiring remotely in Poland due to the country’s growing reputation as a hub for highly skilled tech and business professionals, coupled with a favourable digital infrastructure. Poland’s robust IT sector and strong emphasis on STEM education produce a pool of talent proficient in cutting-edge technologies and multilingual capabilities, making it an attractive option for remote work. The country’s competitive wage structure, relative to Western Europe, allows businesses to access top-tier expertise without the higher costs typically associated with those markets. Additionally, Poland’s well-developed digital connectivity ensures reliable communication and collaboration across time zones, enhancing productivity and integration with global teams. By hiring remotely in Poland, companies can leverage this skilled talent pool while benefiting from cost-effective solutions and efficient remote work capabilities.

Start growing your remote workforce now

Employer Costs
Pension Fund9.76%
Disability Insurance6.50%
Sickness Insurance 2.45%
Accident Insurance Varies by industry, but typically around 1.67%
Labor Fund2.45%
Fund for Rehabilitation of Disabled Persons0.15%
Benefits

Mandatory Benefits

Social security contributions

Workers compensation insurance

Guaranteed Employee Benefits Fund

Retirement Fund

Disability insurance

Accident Insurance

Sickness Insurance

Additional Benefits

Private Healthcare

Employment

Probation

Not required by law, but often lasts 3 months.

Emerald Technology can onboard employees in Poland within 48 hours.

Leave Policy
01.

Maternity Leave

Female employees are entitled to 20 weeks of paid leave, including 6 weeks before the due date. The full salary will be paid by social security.

02.

Paternity Leave

Employees are entitled to 2 weeks paternity leave in the first 2 years after the child is born (two 1-week periods) which will be paid in full by social security.

03.

Parental Leave

In Poland, parents of a child are entitled to parental leave to care for their child, which can be up to 41 or 43 weeks. The length of leave depends on the number of children the parents have taken in:

  • One child: 41 weeks
  • Two or more children: 43 weeks
  • Multiple births: 31–37 weeks
04.

Sickness Leave

In Poland, employees are entitled to sick pay and sickness allowance if they are unable to work due to sickness or infectious disease. The employer pays sick pay for the first 33 days of the calendar year, or 14 days if the employee is 50 or older. After that, the Social Insurance Institute pays sickness allowance for up to 182 consecutive days per year. The amount paid is 80% of the employee’s base salary, or 100% if the illness was due to pregnancy or an accident on the way to or from work. 

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Poland within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Length of employment

Notice period

6 months – 3 years

1 months’ notice

More than 3 years

3 months’ notice

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Length of employment

Severance pay

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

Time off

Statutory Time off

20 days annual leave

Public Holidays

  • New Year’s Day
  • Three Kings’ Day
  • Easter
  • Easter Monday
  • Labor Day
  • Constitution Day
  • Pentecost Sunday – Whit Sunday
  • Corpus Christi
  • Assumption Day
  • All Saints Day
  • Independence Day
  • Christmas Day
  • St Stephen’s Day
Emerald Technology can onboard employees in Poland within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum wage

PLN4,300.00 per month

02.

Working time and Overtime

Typically, 40 hours (5 days of 8 hours)
Paid at 150% of the normal salary, unless at night, on a Sunday or a non-working day, which should be paid at 200%

 

03.

Salary Payments

Salaries in Poland are most commonly paid on a monthly basis.

04.

Bonus

There is no legal requirement for bonuses in Poland

05.

Income Tax

Annual Income (PLN)                Tax Rate                             Tax Calculation
Up to 120,000 PLN                          12%                12% on income up to 120,000 PLN
Over 120,000 PLN                           32%              32% on income exceeding 120,000 PLN

06.

Employer costs

19.48% – 22.14% on top of the employee salary in Poland.

Tax Type Tax Rate
National Pension Scheme (capped at 208,050 PLN) 9.76%
Disability Fund (capped at 208,050 PLN) 6.50%
Labour Fund 2.45%
Accident Insurance (contribution differs based on company size) 0.67% – 3.33%
Guaranteed Employee Benefit Fund 0.10%

Group 1977

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