Overview

With a population of over 38 million people, Poland is the sixth most populous member state of the European Union.

The country boasts a highly educated talent pool, with approximately 58% of the population holding a tertiary education degree.

Employment laws in Poland are generally favourable to employers, with flexible working arrangements and relatively low severance pay obligations.

The business climate in Poland is attractive to foreign investors, with a rapidly growing economy and government incentives for foreign investment. The top industries in Poland include manufacturing, information technology, and finance.

For organisations looking to expand their business in Europe, Poland is an attractive option. It ranks number one in the number of investment projects in the Central and Eastern European countries, and its business-friendly environment and Foreign Direct Investment (FDI) policies have contributed to around 22,000 jobs. 

Poland is one of the fastest-growing economies in the European Union, with low unemployment rates and a strong domestic market. 

 

Capital                                              Warsaw

Languages spoken                          Polish

Population size                                 37.78 million

Currency                                          Polish złoty

VAT                                                   23%

 

 

Payroll and taxes in Poland

In Poland, both employers and employees are required to contribute to the country’s social security system. This accounts for retirement and disability insurance, illness insurance and accident insurance. 

Employer contributions

Employers in Poland contribute between 19.48% and 22.14% of the employee’s gross salary to social security. This includes accident insurance, the amount of which varies according to the business sector and the number of employees at the company. 

Disability and pension contributions are capped at salaries of 177,660zł. If the employee earns more than this, the employer will not pay any contributions. 

Employers are obliged to withhold the employee’s share of the social security contributions and submit them to the Social Security Authorities (ZUS). These payments are made on a monthly basis and are set at 13.71% of the employee’s gross salary. 

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Employee contributions

Employers are obliged to withhold the employee’s share of the social security contributions and submit them to the Social Security Authorities (ZUS). These payments are made on a monthly basis and are set at 13.71% of the employee’s gross salary. 

Employees are required to make a healthcare contribution of 9.76%. This is partly tax-deductible (up to 7.75%), with the remaining part decreasing the after-tax income. 

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Pension contributions

The mandatory pension plan in Poland is known as an Employee Capital Plan (PPK). Every employer is legally obliged to set up a PPK in their organisation within 90 days of establishment and is subject to a penalty of up to 1.5% of the corporate salary funds for the previous financial year in the event of a delay.

Contributions are as follows:

Contribution                           Employers                     Employees

Basic                                           1.5%                              2%

Optional                                 up to 2.5%                      up to 2%

Minimum wage in Poland

As of January 2023, the minimum wage for Polish employees is 3,490zł per month, and expected to increase to 3,600zł per month by July 2023.  The minimum gross wage per hour in Poland was 22.8zł as of January 2023, projected to increase to 23.5zł by July 2023.

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Employee benefits in Poland

Mandatory benefits 

Some statutory requirements that employers provide are as follows: 

Social insurance
Social insurance in Poland includes contributions towards the following funds:

Fund                     Employer Contribution          Employee Contribution

Pension Fund                         9.76%                                 9.76%

Disability Fund                       6.5%                                   1.5%

Sickness Fund                       0%                                      2.45%

Accident Fund                 0.67% - 3.33%                          0%

Labor Fund                             2.45%                                0%

Health Insurance                    0%                                     9%

Guaranteed

Employee Benefits

Fund                                        0.1%                                 0%

 

Occupational health and safety training
Employers in Poland have a number of obligations related to health and safety. They are responsible for holding regular training courses for employees to educate them about health and safety provisions and regulations. They must also provide free personal protective equipment (PPE) and instructions on how to use it. 

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Supplementary benefits

Supplementary benefits often provided in Poland include:

• Private healthcare insurance

• Business travel insurance

• Group life insurance

• Employer-sponsored gym memberships

• Education, training or language course funds

 

Working hours in Poland

Working hours in Poland are typically eight hours per day and 40 hours per week. Under certain conditions, workers may work for a maximum of 12 hours per day and 48 hours per week.

Employers are required to provide employees with at least 11 hours of rest between each working day, and a minimum of 24 hours of uninterrupted rest each week. Employees are also entitled to a break of at least 15 minutes for every six hours worked.

Overtime work is allowed in Poland, but it is subject to additional compensation, with overtime pay of at least 150% of the regular hourly rate. In some cases, employees may be required to work on weekends or public holidays, and these days are also subject to additional compensation.

It's important to note that the maximum working hours, breaks, and overtime compensation may vary depending on the industry and the type of employment contract.

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Types of leave available in Poland

Annual leave

Polish employees are granted annual leave depending on their length of service. Those who have worked for the company for less than 10 years receive 20 days of annual leave, while those who have worked for at least 10 years receive 26 days. Employees are eligible for their first annual leave after completing one month of service.

If you graduate from certain schools, the time you spent in those schools will be included in your employment period. This is important because the length of your leave is based on your total employment period:

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Type of School                                         Duration

Basic or equivalent vocational           Duration of the syllabus, not more                                                                   than three years

Secondary vocational                       Duration of the syllabus, not more                                                                   than five years

Secondary vocational

(for graduates of basic vocational

schools)                                              5 years

Middle comprehensive                       4 years

Post-comprehensive                           6 years

School of higher education                 8 years

Companies with fewer than 50 full-time employees are required to pay holiday allowance of 1,550.26zł. This is paid to each employee once a year, as long as at least one part of their annual leave lasts for at least 14 consecutive days. 

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Maternity leave

Maternity leave in Poland is as follows: 

Number of children born                          Weeks of Maternity Leave

One                                                                         20 weeks

Two (twins)                                                              31 weeks

Three (triplets)                                                         33 weeks

Four (quadruplets)                                                  35 weeks

Five and more (Multiple births of five or more)       37 weeks

A mother can transfer the remainder of her leave to her child's father after her 14 weeks of maternity leave.

Additionally, new mothers are entitled to 32 weeks of parental leave (or 34 in the case of multiple births) once the maternity leave has ended.

Parental leave

Employees can work half-time while on parental leave, at the discretion of the employer. The allowance is then reduced accordingly, and the leave is extended to up to 68 weeks. 

All insured fathers are eligible for two weeks of paid paternity leave, which they can use up until the child is two years old. Paternity leave is granted upon written request and paid in the amount of 100% of the salary. 

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Childcare leave

Childcare leave can be taken for up to 36 months, but only until the child turns five years old. An employee must have been employed for at least six months to be eligible for childcare leave. 

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Training/study leave

Employees who improve their professional qualifications either at the employer’s request or with their consent can receive training leave, in accordance with regulations in the Labour Code.

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Sickness leave

If an employee is unable to work due to illness for a period of up to 33 days, they are eligible to receive 80% of their salary during sick leave. In the event of illness of a pregnant employee (within the same time frame), employees are eligible to receive 100% of their salary. 

If the employee’s illness lasts longer than 33 days, the  Social Insurance Agency will pay out sickness insurance to the employee.

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Public holidays in Poland

Poland observes the following public holidays:*

Holiday                                    Date                        

New Year's Day                       January 1

Epiphany                                 January 6

Easter Sunday                         April 17

Easter Monday                        April 18

Labor Day                               May 1

Constitution Day                      May 3

Whit Sunday                            June 5

Corpus Christi                         June 16

Assumption of Mary                August 15

All Saints' Day                         November 1

Independence Day                 November 11

Christmas Eve                         December 24

Christmas Day                         December 25

Second Day of Christmas        December 26

*All dates are correct for 2023

 

Employees may be granted a paid day off within a particular time scale if a public holiday falls on a Saturday.

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Are background checks mandatory in Poland?

In Poland, background checks are not mandatory for all job positions. However, some employers may choose to conduct background checks as part of their recruitment process to ensure the candidate's suitability for the role, especially for positions with access to sensitive information or working with vulnerable populations such as children or the elderly. Additionally, certain industries or positions may require background checks by law, such as those related to finance, banking, or public safety.

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Termination of employment in Poland

Notice period

Minimum statutory notice period in Poland depends on the number of years the employee has worked with the company:

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Length of employment                                  Notice period

Less than 6 months                                           2 weeks

At least 6 months but less than 3 years            1 month

At least 3 years                                                  3 months

A fixed-term contract can be terminated with two weeks’ notice if it is concluded for at least six months and there is a termination clause in the contract. 

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Probation period

In Poland, the probationary period can last up to 3 months for an indefinite employment contract, and up to 6 months for a fixed-term employment contract of more than 6 months.

During this period, either the employer or the employee may terminate the employment contract with immediate effect, without the need to provide a reason. However, this termination cannot be discriminatory or against the principles of social coexistence.

Additionally, the employer must give the employee a written evaluation of their work during the probationary period.

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Severance pay

In Poland, employees are entitled to severance pay if their employment contract is terminated due to reasons not related to their performance or behaviour, such as the company going bankrupt or the employer deciding to lay off employees for economic reasons.

The amount of severance pay is determined by the length of employment with the company, as follows:

Length of employment                                   Severance pay

Less than 2 years                                           1 month's salary

At least 2 years but less than 8 years            2 months' salary

At least 8 years                                               3 months' salary

However, if the employee was terminated due to their own fault, they are not entitled to receive severance pay.

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Minimum retirement age 

In Poland, the minimum retirement age is 65 for men and 60 for women. However, it is possible to retire earlier if certain conditions are met. For example, women who have at least 35 years of pensionable service or men who have at least 40 years of pensionable service can retire at the age of 60.

Additionally, both men and women can retire at the age of 65 if they have at least 20 years of pensionable service.

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Do you need to hire employees in Poland?

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Talk to us

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Contact

Mrs. Emanuela Ferina

Head of Global Payroll

emanuela.ferina@studio-bcs.com

Phone 0039 0 363 360254

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