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Your Guide to Hiring Employees and Contractors in Poland

Capital city

Warsaw

Currency

Polish Złoty (PLN)

Language(s)

Polish

Ease of doing business

Very easy

Payroll frequency

Monthly

Employer taxes

19.48% – 22.14%

Payroll

Payroll Cycle

All employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Minimum Wage Requirements

The minimum monthly wage in Poland is PLN 3,010.

Individual Income Tax

Income up to 85,528 złoty

Tax rate: 17%

Income above 85,528 złoty

Tax rate: 32%

Pension Fund

Tax rate: 9.76%

National Healthcare

Tax rate: 9%

Sickness Insurance

Tax rate: 2.45%

Disability Insurance

Tax rate: 1.5%

Employer Cost:

The employer cost is generally estimated at 19.48% of the employee salary.

  • 9.76%- Pension Fund
  • 6.5%- Disability Insurance
  • 0.67-3.33% – Accident Insurance
  • 2.45%- Labor Fund
  • 0.1%- Bankruptcy Fund
  • 19.48-22.14% – Total Cost of Employment

Working Hours

Work Week

Monday to Friday.

Overtime Pay & Maximum Hours

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 5 hours of overtime daily. 

Employees can work a maximum of 48 hours of overtime per week and 150 hours per year. For additional hours, employees are paid in addition to normal wage:

Additional Salary

200%

Condition of Overtime

  • Work at night
  • Sundays and public holidays
  • Non-working days granted to the employee in exchange for work on Sunday or a holiday

Additional Salary

150%

Condition of Overtime

  • All other cases of overtime

Employment Termination

In Poland, it is common practice for employers to offer a reason (in writing) to terminate a contract of employment. 

A notice period must be provided to ensure both parties have time to identify and hire a replacement.

Reasons for termination may include any violation of the employment agreement, the performance of the employee, or organizational changes due to macroeconomic reasons, including company shutdown.

Notice period

In Poland, employees who are on a contract (fixed-term or indefinite) are entitled to a notice period, the duration of which depends on the number of years of service. 

The notice period is usually three months for employees who have worked with the company for more than three years.

 The notice period is one month for employees who have between six months and three years of service. 

For less than that, the notice period is usually a week.

Employers in Poland must offer notice even during a probationary period.

This notice period must be between three days and two weeks depending on the terms of the contract.

Probation periods

The maximum length of a probationary period of employment in Poland is three months. 

Polish companies have the right to begin employment relationships with formal “trial contracts,” which usually expire after three months. 

At the end of such a contract, an employer can either end the relationship or offer the employee a new fixed-term or indefinite contract.

These details are subject to change by the respective government and regulatory authorities in each country.

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