Definitive Guide to Hiring in Poland

Hiring in Poland

Hiring employees compliantly in Poland means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Poland so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Poland; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Poland

Employee Probation Period

• The maximum probationary period is three months.

Annual Leave in Poland

• Employees are entitled to 20-26 days of paid leave or vacation (depending on tenure).
• Employees with less than 10 years of tenure are entitled to 20 days of leave while employees with 10 years or more of tenure are entitled to 26 days.

Holidays in Poland

Maternity Leave Poland

• The length of maternity leave depends on the number of children born at one birth.
• The maximum length is 37 weeks in the event of giving birth to five or more children while in the event of giving birth to only one child it is 20 weeks.
• A female employee, after having used at least 14 weeks of maternity leave after the birth, is entitled to waive of the remaining part of the leave.
• In this case, the unused part of the maternity leave must be used by a male employee raising the child.

Paternity Leave Poland

• A male employee has the right to 2 weeks’ paternity leave to be taken before the child reaches the age of 24 months. It may be taken all at once or in two parts (each of the part must be at least a week).

Sick Leave in Poland

• Employees are also entitled to additional ‘certified’ paid sick leave for long-term illnesses when ordered by a physician (i.e. it requires a formal statement from a doctor).
• In this case, the employer pays up to 33 days of sickness (anything additional is paid for by the Social Security Bureau).

Working Hours in Poland

• The average working hours are from 8am to 4pm weekdays and 8am to 2pm on Saturdays. Most Poles don't take lunch during the day.
• Working time in Poland should not exceed 8 hours per day and an average of 40 hours per an average five-day working week.

Overtime in Poland

• Every hour you work more than 8 hours a day and 40 hours a week counts as overtime work.
• According the Polish Labor Law, you are not allowed to work more than 8 hours’ extra hours per week and a maximum of 150 hours’ overtime per year.
• Overtime work is compensated by premium pay, in the following manner: -
  • 200% of the salary is provided for working overtime at night; on Sundays and public holidays that are not usually working days for the employee; and on a day-off from work granted to an employee in return for work on a Sunday or on a holiday.
  • 150% of salary is provided for working overtime on any other day.

Termination of Employment in Poland

• Employment contracts may always be terminated, with no penalty, by mutual consent between the employer and employee.
• Indefinite contracts are more difficult to terminate as they require grounds and justification for termination (these reasons may be challenged by the employee in labor court, if the employee does not agree with them)
• Short-term and fixed-term contracts only require proper notice (reason and justification are not required)
• Notice periods depend on length of service
• An employer may terminate an employment agreement without notice:
  • in the event of a severe violation by the employee of the employee’s basic duties
  • if the employee commits an offence, which prevents further employment in the occupied job position – if the offence is obvious or has been declared by a final court sentence
  • if the employee, through his fault, loses a license required to perform work in the occupied job position
  • if an employee is unable to work as a result of an illness
  • if an employee has any justifiable absence from work for other than aforementioned reasons, lasting for more than 1 month

Notice Period in Poland

• Each type of contract may be terminated with proper notice:
• Required notice for short-term contracts (up to 3 months):
  • 3 working days if the probationary period does not exceed 2 weeks
  • 1 week if the probationary period is longer that 2 weeks
  • 2 weeks if the probationary period is 3 months
• Required notice for fixed-term and indefinite contracts:
  • 2 weeks if the employee has been employed for less than 6 months
  • 1 month if an employee has been employed for at least 6 months
  • 3 months if an employee has been employed for at least 3 years
• It is important to note that the employer can only terminate by giving notice. Paying an indemnity in lieu of notice is not permitted.

Severance in Poland

• Employees are entitled to severance pay of:
• one month's pay if they have worked for the employer for less than 2 years
• two months' pay if they have worked for the employer for between 2 and 8 years
• three months' pay if they have worked for the employer for over 8 years.

Poland Salary and Wages

13th / 14th Month Salary in Poland

• No
• There is no statutory requirement to pay the 13th or the 14th month salary.
• Employees are entitled to 20 or 26 days of annual leave at a standard rate.

• Employers and employees must make social security contributions in total equal to approximately 35% of an employee’s remuneration, subject to certain caps, with approximately 21% paid by the employer and 14% by the employee.
• Employees also are required to make a 9% healthcare contribution, which is no longer tax deductible as from 1 January 2022 (the contribution is collected and remitted by the employer).
• Employee Capital Plans (PPKs)—broadly, a type of retirement savings plan financed jointly by the employee, the employer, and the government, and operated by third party financial institutions—apply to all companies with 10 or more employees.
• Employees and otherwise designated hired individuals (subject to specific regulations) may voluntarily participate in PPKs.
• Persons are enrolled by default but have an option to opt out. Basic employee contributions are 2% of gross remuneration and basic employer contributions are 1.5%. There are no caps.

Immigration Poland

• In general, foreign nationals wishing to work in Poland must obtain a work permit.
• However, citizens of the EU and EFTA states are exempt from the requirement of obtaining a work permit in Poland.
• Work permits for foreigners are required for the following types of employment:
  • Type A: A foreigner works in Poland under an employment contract with an entity whose headquarters, place of residence, branch, permanent establishment, or other form of activity is located in Poland.
  • Type B: A foreigner performing a function in the management board, acting as a proxy or a general partner of a legal person entered into the Register of Entrepreneurs or of a company under organization remains in Poland for more than a total of 6 months in any 12-month period.
  • Type C: A foreigner is employed by a foreign employer and is delegated to Poland for a period longer than 30 days in a calendar year to a branch or a permanent establishment of the foreign entity, or its related entity, as defined in the Act of 26 July 1991 on income tax from individuals.
  • Type D: A foreigner employed by a foreign employer that has no branch, permanent establishment or other form of an organized business activity in Poland is delegated to Poland for the purpose of performing temporary and occasional services (export services).
  • Type E: A foreigner is employed by a foreign employer and is delegated to Poland for a period longer than 30 days in any 6-month period for purposes other than those listed for Types B, C and D.
  • Type S: A foreigner is employed as a seasonal worker in areas such as agriculture, gardening and tourism. It allows foreigners to work in Poland for a maximum period of nine months in a calendar year and is available for nationals from all countries.
• A work permit is issued for an individual foreigner. The work permit includes details regarding the employer, the position or type of work to be performed by the foreigner, remuneration and the expiration date of the permit
• It is possible to apply for a residence permit with a right to work in a unified procedure. Such option is available in case of a Polish employment contract and a person legally staying in Poland.
• Each year, a maximum yearly limit of work authorizations that can be issued by the authorities may be introduced. It needs to be checked whether the limits have been introduced.
• Poland accepts EU Blue Card applications from highly skilled third-country nationals who have an employment contract with a Polish company and possess the required qualifications (relevant higher education certificates and documents proving professional experience).
• An individual holding a Blue Card may apply for an EU long-term residence after he or she has spent five years living in the EU of which the last two years were spent in Poland.

Value Added Tax (VAT) in Poland

• The standard VAT rate in Poland is 23%.
• There are reduced rates of 8% and 5% on certain food, books, newspapers and the supply of a limited number of other services.
• A number of services are exempt from Polish VAT, such as financial and postal services.

Mandatory Benefits in Poland

• These are benefits as postulated by law
• These include probationary period, public holidays, annual leave, sick leave, maternity leave, paternity leave, notice period, severance pay
• Statutory benefits also include socials security benefits such as retirement insurance, disability insurance, sickness insurance, and industrial injuries insurance.

Payroll Accrual in Poland

Country Accruals Additional Information

Description

As of 1 April 2015, the employer pays total contributions in a range of 19.21% to 22.41% of the employee’s gross salary (the employer’s contribution rate includes an accident insurance element that varies according to the number of employees insured and the business sector). The contribution rate for the employee is 13.71% of gross salary. The social security shares payable by the employer and the employee are tax-deductible items in their respective PIT settlements. Poland Individual - Other taxes Part of the above rates apply to salaries below the cap of PLN 157,770 in 2021. The cap is changing every year. After exceeding this cap, the salary is subject to a contribution rate of 3.22% to 6.41% payable by the employer and 2.45% payable by the employee.

Payroll Accruals Additional Information

Accrued Benefits in Poland

Why use Global Expansion to hire in Poland

Establishing a branch office or subsidiary in Poland can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Poland labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Poland law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Poland. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Poland Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.