Hire in Poland
Poland PEO &
Employer of Record
Hire & manage teams remotely in Poland without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Hire Employees in Poland
The NNRoad Advantage ☺
Pay as you go
Global account manager
Employer of Record in Poland
Compliance & Payroll
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Poland
Compliance & Payroll
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Poland
Employee Income Taxes:
Individual income taxes in Poland are imposed on the income earned by individuals, including employment income, business profits, and investment income. The tax system in Poland is progressive, meaning that higher income earners pay a greater percentage of their income in taxes.
In 2021, the tax rates range from 17% for income up to PLN 85,528 to 32% for income over PLN 1,000,000. There are also various tax deductions and credits available, such as those for charitable donations, medical expenses, and education expenses. Taxpayers are required to file annual tax returns by April 30th of the following year and can use either a simplified or standard tax form.
Employee Income Taxes:
Polish tax residents pay personal income tax (PIT) on their worldwide income. Non-residents are subject to Polish PIT on their Polish-sourced income only.
32%: Over 85,528 PLN
17% * 70,000 = 11,900
Yearly income tax = 11,900 PLN
Employer Costs in Poland
Employer costs in Poland include not only wages or salaries paid to employees but also a range of mandatory contributions and benefits. The main types of mandatory contributions that employers are required to pay are social security and health insurance contributions, which are based on the gross salary of the employee.
Employers are also required to make contributions to the Labour Fund, which finances various labour-related initiatives, and the Guaranteed Employee Benefits Fund, which provides financial support to employees in the event of bankruptcy or liquidation of their employer.
9.76% – Retirement
6.50% – Disability
0.67% – 3.33% – Accident
2.45% – Labour Fund
0.10% – Guaranteed Employee Benefits Fund
Total employment cost: 19.48% – 22.14%
9.76% – Retirement
1.50% – Disability
2.45% – Sickness
Total employee cost: 13.71%
Benefits & Insurance in Poland
In Poland, employees are entitled to a range of benefits and insurance coverage. These include mandatory social insurance contributions, which provide health care coverage, disability benefits, and retirement pensions. Employers are also required to offer employee health and safety training and to provide a safe working environment.
Many employers offer voluntary benefits, such as private health insurance, life insurance, and additional retirement savings plans. These benefits are often negotiable as part of the employment contract. Overall, the Polish government and employers place a strong emphasis on providing a comprehensive system of benefits and insurance to ensure the well-being of workers and their families.
Old Age Pension
Old-age pension is provided to people who meet both of the following conditions in the general pension scheme operating under the current rules:
- the person has reached the normal retirement age of 60 years for women and 65 for men
- ZUS has credited at least one contribution for old-age pension insurance to an individual account of the person insured
The disability pension is granted to an insured person who:
- is incapable of work
- before claiming the pension or before the occurrence of the incapacity for work, has fulfilled the required contributory and non-contributory time of at least 5-years during the previous decade
- during a contributory or non-contributory term as defined in the Old-Age Pension Act, or within 18 months of the end of that period, has become unable of labor
- has no established entitlement to a FUS pension or does not meet the requirements to establish one
Work Accident Insurance
The insured person who has sustained an accident at work or contracted an occupational disease, may claim an additional support from ZUS.
The social insurance institution may cover the costs of:
- dental treatments and prophylactic vaccines that can have an impact on the repercussions of a workplace accident or occupational sickness
- medical devices
Working Hours in Poland
In Poland, the standard working week is 40 hours, typically spread over five days. The typical workday starts at around 8:00 or 9:00 am and ends at 4:00 or 5:00 pm, although there may be some variation depending on the industry and employer. Overtime work is subject to specific regulations, with a maximum of 8 hours per week allowed by law.
Workers are also entitled to breaks during the workday, with a minimum of 15 minutes for every 6 hours of work. Overall, working hours in Poland are similar to those in other European countries, with an emphasis on work-life balance and ensuring that employees have adequate time for rest and leisure.
Working Hours Per Week
Working hours in Poland are 8 hours per day at 40 hours per week, 5 days a week. Flexible working time, which comprises multiple starting hours or time periods during which workers may begin work, is also an option. In some work time systems, the daily working time can be extended.
During the calendar year, the quantity of overtime work conducted in response to the employer’s unique demands cannot exceed 150 hours. Salary supplements or paid time off are used to compensate for overtime work.
Termination Laws in Poland
If a contract is terminated without notice or with notice for an undefined period, the reasons for dismissal must be disclosed. The cause for dismissal must be genuine and specific so that the employee understands the grounds for dismissal. The reasons for termination with notice may be attributed to the employee (e.g., non-performance or faulty performance of the employee’s tasks) or not (e.g. redundancy).
If a business with more than 20 employees terminates an employee purely for non-employee reasons (e.g., due to a workforce reduction or redundancy of a job), the firm must give a severance payment equal to:
- One month’s salary if the employee stayed with the company for less than two years
- Two month’s salary if the employee has stayed for 2 to 8 years
- Three month’s salary if the employee has stayed for more than 8 years
For fixed or indefinite term contracts, the notice period for termination is as follows:
- If you have served for more than 6 months, you will be given two weeks
- If you have 6 months to 3 years of service, you will be given one month
- If you have minimum 3 years of service, you will be given 3 months
Employment Contract in Poland
In Poland, the most common type of employment is an employment contract. It is up to the parties to decide whether or not to use an employment contract as the basis of employment (employer and employee). An employment relationship may be established under a contract other than an employment contract like a civil law contract, unless applicable legislation require otherwise.
An employment agreement should define the parties to the agreement, the type of agreement, the date on which it will be completed, as well as the work and remuneration conditions, including in particular the following:
- the type of work
- the place where the work is performed
- the remuneration corresponding to the type of work, with a specification of the remuneration components
- the working time
- the starting date of employment
Polish law allows for a separate probationary period agreement to be executed prior to both open-ended and fixed-term employment agreements. Three months is the maximum probationary period that can be used.
Types of Leaves in Poland
If a full-time employee has worked for the same employer for less than ten years, they are entitled to 20 days of paid annual leave per year. When an employee has worked for the same company for more than ten years, they are entitled to 26 days of paid yearly leave.
According to the employment contract, all employees are entitled to paid sick leave based on the number of years of service and the employee’s age.
Employees under the age of 50 have the right to up to 33 days of paid sick leave, which is covered by the employer. If the sick absence lasts past day 33, Social Security (ZUS) will be responsible for the payments starting on day 34.
Employees over the age of 50 have the right to up to 14 days of paid sick leave, which is covered by the employer. If the sick leave lasts longer than 14 days, the payments will be taken over by Social Security (ZUS) from day 15 onwards.
Sick leave is paid at 80.00% of the allowance basis or 100.00% of the allowance basis if the illness occurs during pregnancy or is caused by an accident on the way to or from work.
Female employees are entitled to maternity leave periods that are proportional to the number of children they have given birth to or adopted:
- For one child, 20 weeks of maternity leave
- 31 weeks for two children, 33 weeks for three, 35 weeks for four
- 37 weeks of leave for five or more children
All maternity pay is covered by the Social Security Institute at 100% of the employee’s regular salary rate.
Within the first 24 months after the kid’s birth or from the date of adoption before the child turns seven years old, fathers are entitled to two weeks of paid paternity leave. The Social Security Institute pays 100% of the salary.
Employees have the option of taking up to 32 weeks of parental leave. After maternity leave, both male and female employees, as well as adoptive parents, are eligible for leave. For the first six weeks, the leave is paid at 100% of the employee’s salary. The remaining is paid at 60%
Public Holidays in Poland
- New Year’s Day – January 1st
- Three King’s Day – January 6th
- Easter – April 17-18
- Labour Day – May 1st
- Constitution Day – May 3rd
- Pentecost – June 5th
- Corpus Christi – June 16th
- Assumption Day – August 15th
- All Saint’s Day – November 1st
- Independence Day – November 11th
- Christmas Day – December 25th
- St Stephen’s Day – December 26th