Employing in Poland

Famous for its marketplaces and old towns, Poland also has a vast selection of forests, lakes and mountains to offer and boasts a strong central position within Europe. From the northerly golden beaches of the Baltic Sea and the southern mountain borders between Czechia and Slovakia to the Oder River bordering Germany in the west and the romantic landscapes of Ukraine, Belarus and Lithuania in the east, Poland is well placed for doing business.

Thanks to its central location, Poland provides a mix of Western and Eastern European cultures, ideal for global businesses looking to tap into both sides of the continent. Although Polish is the official language, the country also has one of the highest rates of English as a second language in the world, helping to facilitate cross-country communications.

Contents

Our Expertise

Managing a global workforce in Poland

Managing a global workforce in Poland requires a comprehensive understanding of the local employment landscape, known for its manufacturing industry and robust workforce. Poland's labour laws, including the Labour Code and social security regulations, require careful compliance. TopSource Worldwide's expertise in these areas can greatly assist businesses, ensuring smooth operations for employing in Poland. Our services streamline the complexities of managing a workforce in the Polish market.

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Extensive expertise

Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.

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Entity-free employment

Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.

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Payroll without hassle

Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success. 

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Always-on support

Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.

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Global Employee Cost Calculator

Estimate the cost of your new hire with our calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.

TESTIMONIALS

Hear from our clients about our EOR solutions in

"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."

Annette van Duijnhoven
Nutreco

”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."

Praveen Lihinar
Sungard

”TopSource Worldwide has a detailed and methodical onboarding process that made it easy for us to get set up and running with our UK employees. They were able to take the worry out of trying to comply with all local laws and regulations. Because they have this knowledge we do not have to research on our own and hope we are in compliance. This has saved us hours of time and gives both the company and employees a sense of security."

Supervisor
Client based in Ft Worth, Texas, USA
GLOBAL EXPANSION STRATEGY

Personalised Employer of Record services in Poland

TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Poland. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Poland-based employees.

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End-to-end Poland payroll services

Looking to expand into Poland? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Poland expansion initiatives.

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Global entity management

Venturing into the Polish market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.

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Accounting

Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.

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Global EOR services

Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.

Global Expansion Simplified

How to do business in Poland

Entering the Polish market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.

TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Poland.

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Poland Insights

Key insights into Poland's landscape

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VAT rates: Poland has a standard VAT rate of 23%, with reduced rates of 8% and 5% for specific goods and services.

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Ease of Doing Business rank: Poland ranks 40th in the World Bank's Ease of Doing Business Index, indicating a moderately favourable business environment.

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Consumer Confidence Index: As of 2022, Poland's Consumer Confidence Index was 87.7, reflecting stable economic sentiment.

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Employee maternity/paternity leave: Maternity leave is 20 weeks, and paternity leave is 2 weeks, emphasising support for new parents in the workforce.

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Employee termination period: Standard notice for termination varies but is typically 2 weeks to 3 months, depending on employment contract terms and length.

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Employee salary pay date: Wages are generally paid monthly, with specific pay dates outlined in employment contracts and subject to labour laws.

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Bank holidays: Poland observes national bank holidays, including Independence Day, Constitution Day, and Christmas, with a total of 13 public holidays in a year.

An overview of employing in Poland

Salary currency

Polish złoty (zł)

Salary

The minimum wage in Poland is zł 2,800 per month or zł 18.30 per hour.

Bonus

Any variable salary including bonuses and compensation should be outlined in the contract of employment.

Healthcare

Poland has a mixed public and private healthcare system. It’s compulsory for employees to pay 9% of their gross salary towards healthcare.

Employer costs

Contribution
Employee
Employer
Retirement pension contribution
9.76%
9.76%
Pension contribution
1.5%
6.5%
Sickness contribution
2.45%
N/A
Disability pension
N/A
from 0.67% to 3.3%
Health insurance
9%
N/A
Employment fund
N/A
2.45%
Fund of Guaranteed
N/A
0.1%

An overview of the main statutory benefits

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Pension & Sickness

An employer is required to pay 9.76% of the employee’s gross salary towards their pension on a monthly basis. An employee is required to pay 9.76% of their gross salary towards their pension on a monthly basis.

Sickness:

  • Any employee aged 50 years old or younger is entitled to up to 33 sick days per year paid by the employer (after 33 days, social security will make the payments).

  • If an employee is older than 50 years old, they’re only entitled to 14 sick days paid by the employer. All days over that will be paid by social security.

  • Sick leave pay is paid at 80% of the employees’ normal salary or 100% if the illness occurred during pregnancy or a work-related accident.
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Parental leave

In addition to paternity and maternity leave, there are 36 months of parental leave. This time is unpaid and can be taken up until the end of the calendar year in which the child turns six years old. 34 months of this time can be allocated between the mother and the father however they choose, while one month is directly allocated to the father and one month is directly allocated to the mother.

Contractual provisions

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Contract of employment

Electronic contracts are recognised by Polish law. A person’s intent can be expressed by any action, including in an electronic form (declaration of intent) (Article 60 Civil Code).

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Probationary period

A probationary period in Poland cannot be longer than three months for regular employees and no longer than six months for chief officers. The probationary period cannot be longer than 50% of the employment contract.

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Working hours & Overtime

Full-time employment in Poland is considered an average of eight hours a day and 40 hours per week. Employers are required to keep accurate records of working hours to ensure an employee’s average working hours do not exceed this.

Overtime is paid at 150% of the employee’s normal rate. If the overtime the employee is required to work is at night, on a Sunday, on a public holiday or any day that was meant to be non-working, then overtime must be paid at 200% of the normal rate.

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Rest breaks

Employees who have worked a continuous six hours are entitled to a 15-minute break. If an employee works at a computer, they’re entitled to a five-minute break every hour. Many employees give their employees an hour break per day, but this is not required by law.

Termination

Any employment contract can be terminated at any time if both parties agree.

Either the employee or the employer has the right to issue a ‘statement of will’ to end the employment contract. As long as the notice periods are adhered to, no specific reason is required.

If the contract is expiring, then the contract can be ended with no requirements.

Notice periods

Length of employment
Notice period
Six months or less
Two weeks
More than six months, less than three years
One month
More than three years
Three months

Severance pay

Severance pay is only required to be paid if the employer in question has a total of 20 or more employees at the time of dismissal and it’s through their fault that the contract is coming to an early end.

Length of employment
Severance pay entitlement
Two years or less
Two weeks
Two to eight years
Two months’ salary
Eight years +
Three months’ salary

Holiday entitlement

Holiday entitlement in Poland is accrued based on tenure inclusive of all periods of employment and upper secondary education and is not specific to the current employer.

  • If an employee has been ‘employed’ for less than 10 years, they’re entitled to 20 days of holiday
  • If they’ve been ‘employed’ for longer than 10 years, they’re entitled to 26 days of holiday

Employees are able to divide their leave, but at least one part of the leave must be taken as 14 consecutive days (including weekends). A maximum of four of the leave days may be used as ‘leave on-demand’, pursuant to Polish Labour Law. Employers are obliged to grant these four days provided that the employee requests permission no later than on the day of its commencement. Employers may only refuse to grant this leave in special circumstances.

Accrued leave must be used by 30 September of the following calendar year. Should there be any outstanding leave upon termination, employees are entitled to cash remuneration.

In addition to statutory leave, there are 13 public holidays. If a public holiday falls on a Saturday, the employee is entitled to an additional day of paid leave. This rule does not apply if a public holiday falls on a Sunday.

Employ and pay anywhere

Specialising in multi-country payroll solutions

TopSource Worldwide offers comprehensive payroll outsourcing services, ensuring seamless and accurate management of your organisation's payroll functions. With cutting-edge technology and a team of experienced professionals, we handle payroll processing, tax compliance, and regulatory requirements with precision.

Calculate Your Employer of Record Taxes in Seconds

Employment Cost Calculator in Poland

Our Employment Cost Calculator simplifies complex tax calculations for global businesses. Accurately assess tax obligations, ensuring compliance with local regulations. Streamline payroll management effortlessly with our user-friendly tool, providing transparency and efficiency in international workforce taxation.

In addition to calculating your EOR taxes, our calculator can also help you:

  • Understand the different types of EOR taxes
  • Stay up-to-date on the latest changes to EOR tax regulations
  • Avoid penalties for non-compliance

Employer of Record FAQ

Frequently Asked Questions about Polish employment solutions

What is an Employer of Record in Poland?

An Employer of Record (EOR) is a professional services provider that assumes the responsibility of being the legal employer for a company's workforce in Poland. This entails managing tasks such as payroll processing, tax withholding, benefits administration, and ensuring compliance with local labour laws and regulations.

How do global employment services work?

Global employment services operate as a comprehensive solution for businesses seeking to expand their workforce across borders. These services, often provided by Employer of Record (EOR) companies like TopSource Worldwide, streamline the complexities of international employment.

What are the benefits of working with an Employer of Record in Poland?

Employer of Record companies assume the legal responsibilities associated with employment, alleviating the burden of compliance, payroll, and HR management in Poland. This allows companies to expand globally without the complexities of establishing legal entities in each location.

What is the difference between EOR & PEO?

An EOR acts as the legal employer, handling tasks like payroll, tax compliance, and benefits administration. This allows companies to expand internationally without establishing legal entities. On the other hand, a PEO shares employer responsibilities with the client company, often co-employing workers.

How are employer payroll taxes calculated in Poland?

Calculating employer payroll taxes involves understanding the various taxes associated with employing workers and complying with tax regulations in Poland. Key components include federal and state income taxes, Social Security, Medicare, and unemployment taxes.

What global employment solutions does TopSource offer?

TopSource Worldwide facilitates hassle-free global expansion by acting as the legal employer, handling payroll, tax obligations, and HR responsibilities. With expertise in global entity management, TopSource assists businesses in navigating the intricacies of legal structures across borders.

Let's get started

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