Europe

Poland

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Employer of Record (EOR) in Poland

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Poland Introduction

Poland is a country in central Europe, bordered by Lithuania, Russia, Belarus, Ukraine, Slovakia, the Czech Republic, and Germany. The country has very high standards of living, safety, labor laws, and economic freedom, as well as free university education and a universal health care system. Poland's diverse territory extends from the Baltic Sea in the north to the Sudeten and Carpathian Mountains in the south.

Employment Terms

Types of Contracts

Contracts can be part-time or full-time.

  • Fixed term (with a maximum of 33 months over 3 contracts, which including probation totals 36 months)
  • Indefinite term

Working Hours

A standard workweek in Poland is 40 hours at 8 hours per day. Overtime rules depend on the employee's profession, but are usually a maximum of 150 hours per year (paid at 150%-200% of the regular rate).

Minimum Wage

The minimum wage in Poland is 3,600 PLN as of July 2023.

Probation Period

In Poland, probation periods are managed using a separate contract and can be a maximum of 3 months in length. Probation contracts tend to have the same terms as indefinite or fixed term contracts.

Medical Check

To start work, employees in Poland must complete a medical check, with a process as follows:

  • Employer provides medical check form
  • The doctor performs a test (the minimum test for office employees is normally an eye test)
  • Medical certificate is issued
  • Employee is reimbursed the cost of the medical check by their employer

Health and Occupation Training

Employees must complete Health and Occupation training within the first 3 months of employment, organized by the employer - this is normally first aid training or similar.

Taxes & Local Employment Costs

Employee Taxes

Employees in Poland are taxed at 17% for income up to PLN 120,000, and 32% for income over that amount. Employees also contribute 9% to health insurance.

Employer Taxes & Contributions

Employers contribute 21.5% of the employee's gross salary for social security (Pension, disability, etc).

Additionally, before employment starts, the following one-off costs apply.

  • Medical check, usually at a local medical facility, for approximately PLN 200 (typically organized by the employee and paid back to them in their first paycheck)
  • Health and Safety training - performed by an external company, for approximately PLN 250

Types of Leave

Annual Leave (Vacation)

Employees in Poland are entitled to a minimum of 21 days of annual leave. After completing 10 years of service, employees are entitled to a minimum of 26 days. Annual leave entitlements are calculated pro-rata for the first year of employment.

Sick Leave

In general, employees in Poland are entitled to receive full pay for the first 14 days of sick leave, after which the minimum amount of sick pay is reduced to 50% of their regular wages. This reduced pay rate applies for the next 180 days of sick leave, after which employees are no longer entitled to receive sick pay.

In addition to sick pay, employees are also entitled to certain protections from the employer while they are on sick leave. For example, the employer is not allowed to terminate the employment or discriminate against the employee because of their illness or injury.

Maternity Leave

An employee is entitled to maternity leave for:

  • 20 weeks - in case of the birth of one child in one birth;
  • 31 weeks - in the event of the birth of two children in one birth;
  • 33 weeks - in case of giving birth to three children in one birth;
  • 35 weeks - in case of giving birth to four children in one birth;
  • 37 weeks - in the case of giving birth to five and more children in one birth.

The leave is paid by social security at 100% of the salary, and employees need to take at least 14 weeks of leave after the birth.

Paternity Leave

Fathers have the right to 2 weeks of paternity leave that can be taken before their child reaches the age of 24 months. It may be taken all at once or in two parts; each period must be a minimum of 1 week in duration.

Public Holidays

  • New Year’s Day - January 1
  • Epiphany - January 6
  • Easter Sunday - Moveable date
  • Easter Monday - Day after Easter Sunday
  • International Workers' Day/May Day - May 1
  • Constitution Day - May 3
  • Pentecost Sunday - 7th Sunday after Easter
  • Corpus Christi - 9th Thursday after Easter
  • Assumption Day - August 15
  • All Saints' Day - November 1
  • Independence Day - November 11
  • Christmas Day - December 25
  • Second Day of Christmas - December 26

Benefits

Summary

Medical insurance is not usually provided by employers in Poland - employees are covered by the state insurance.

Employees can choose to opt-out from pension contributions.

Termination Process

Termination Process

The termination process depends on the employment contract or Collective Agreement in place, and the reason for termination.

Notice Period

The notice period for termination depends on the employee’s length of service at the company:

  • 0 – 6 months = 2 weeks notice
  • 6 months-3 years = 1 month notice
  • 3+ years = 3 months notice

Employers may terminate an employment contract with no notice in the event of:

  • a serious breach of the employee’s basic employment duties;
  • the employee committing an offense which results in the employee being unable to continue occupying their position (e.g. fraud)
  • the employee losing the entitlements necessary to perform in their position (e.g. disbarring)

Severance Pay

Severance payments are also dependent on the employee’s length of service at the company:

  • 0-2 years = 1 month of pay
  • 2-8 years = 2 months of pay
  • 8+ years = 3 months of pay

Additional Information

N/A

OVERVIEW
Language(s):
Polish
Currency:
Polish Złoty (PLN)
Capital City:
Warsaw
Population:
39.8 Million
Cost of Living Rank:
89th
VAT (Valued Added Tax):
23%
Employer TaxES
19.48% - 22.14%
(estimated)

★  9.76% - Retirement Pension

★  6.5% - Pension Fund

★  0.67%-3.33% - Disability

★  2.45% - Labor Fund

★  0.1% - Guaranteed Employee Benefits Fund

Get Started in 3 Steps

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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Available in 180+ countries
How Remofirst employs in Poland

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Poland get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Poland are paid on time in Polish Złoty (PLN). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Poland, they can speak with our customer support team to get answers from our team of experts.