Employer of Record & PEO in Poland
Hire & manage teams remotely in Poland without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Poland . Registering a legal entity in Poland as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Poland in full accordance with local labor laws in under a week.
Employer of Record in Poland
Employer of Record (EOR) services are for companies who do not have a legal entity in Poland , but who want to hire in Poland . Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Poland .
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Poland in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Poland while NNRoad manages payroll & HR liabilities.
- Engaging employees through local labor contracts including contract administration, engagement, extension termination and conversion to permanent hire
- On-boarding and off-boarding employees following local labor law practice
- Registration of employees with social security board and with tax office
- Complete payroll solution and mandatory benefit administration
- Payments of local taxes and local social contributions to the relevant authorities
- Payment management, including invoicing customers/clients and salary payments
- Support with Work permit for expat employees
Payroll & PEO in Poland
Professional Employment Organization (PEO) services are for companies who have a legal entity in Poland, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
➊ You interviews & select the candidates you want to hire in Poland .
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Poland while NNRoad manages payroll & HR compliance.
- Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rules
- Registering all local employees with the social security board, if required
- Calculation of wages and salaries and drawing up payrolls including various types of remuneration components based on information provided by the Company including irregular payments such as incentive/bonus, allowance, etc. if applicable
- Preparation of income statements for the tax office and the Social Insurance Institution
- Completing documents needed for calculating the initial capital to be provided to the Social Insurance Institution
- Pro-rata calculation for people who join/resign
- Providing a payroll and personnel reports for internal and external needs e.g. the Central Statistical Office
- Monthly issue of electronic pay-slips
- Prepare annual payroll related reconciliation report
Advantages of NNRoad's Poland Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Poland .
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Poland.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Poland
Taxes & Payroll in Poland
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.
17%: 0 – 85,528 PLN
32%: Over 85,528 PLN
Yearly income = 70,000 PLN
17% * 70,000 = 11,900
Yearly income tax = 11,900 PLN
Employer Costs in Poland
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%
Working Hours in Poland
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.
Benefits & Insurance in Poland
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
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).
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
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
Holidays in Poland
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
Paid Leave 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.
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
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%
Immigration Laws in Poland
Non EU residents have to apply for a working visa to work in Poland.
There are five types of working permits:
- Type A – This permit is required for foreign individuals who work for a Polish employer.
- Type B – This work permit is valid if you are a board member and plan to stay in Poland for more than six months in the next 12 months.
- Type C – This kind of permit is for workers sent to Poland by a foreign company for more than 30 days in a calendar year.
- Type D – If a foreign employer sends you to work in export services on a temporary basis, you are eligible for this visa.
- Type E – This is for work-related tasks that don’t fall in the other categories.