Guide to hiring employees in Poland

Everything you need to know when expanding your workforce in Poland

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Source: Canva

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. 

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. 

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.

pexels-tirachard-kumtanom-601170

Source: Pexels/Tirachard Kumtanom 


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. 

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.

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:

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. 

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. 

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. 

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.

pexels-artem-podrez-4492126 Source: Pexels/Artem Podrez

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.

Public holidays in Poland

Poland observes the following public holidays:*

Holiday

Date

Day

New Year's Day

January 1

Saturday

Epiphany

January 6

Thursday

Easter Sunday

April 17

Sunday

Easter Monday

April 18

Monday

Labor Day

May 1

Sunday

Constitution Day

May 3

Tuesday

Whit Sunday

June 5

Sunday

Corpus Christi

June 16

Thursday

Assumption of Mary

August 15

Monday

All Saints' Day

November 1

Tuesday

Independence Day

November 11

Friday

Christmas Eve

December 24

Saturday

Christmas Day

December 25

Sunday

Second Day of Christmas

December 26

Monday


*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.


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.

Attracting talent in Poland

A highly motivated workforce

Poland’s workforce is motivated, hardworking and ambitious, as well as incredibly well-educated - seven out of ten young adults who have a tertiary degree also have a master’s qualification. This is more than twice the average across the Organisation for Economic Co-operation and Development (OECD) countries.

With this in mind, it’s a good idea to build relationships with the universities in Poland when recruiting talent in the country. Both Warsaw and Krakow have a large graduate talent pool, producing 59,000 and 40,000 graduates per year, respectively. That means that entry-level positions are a great opportunity to fill with younger talent excited by the prospect of entering the working world. 

A number of organisations in Poland have established relationships with local universities to tap into this talent pool before students graduate. This is often done via sponsoring or outreach programmes. 

With such a motivated workforce, it’s also important for employers looking to expand in Poland to consider offering benefits that promote growth and development. For example, organisations could offer training and development programs that enable employees to improve their skills and boost their career prospects.

A growing economy

Poland's growing economy has been a significant factor in attracting talent to the country. In recent years, Poland has achieved steady economic growth, outpacing many other countries in the region. The country's strategic location in Central Europe has made it a natural hub for international businesses looking to expand their operations in the region. This has led to a thriving job market, with plenty of opportunities for local and foreign workers. The country has also invested heavily in infrastructure and technology, making it an attractive destination for tech talent.

Moreover, Poland is an ideal destination for foreign investors due to its low labour costs, access to a large talent pool, and favourable tax incentives. The country's pro-business environment and stable political climate have also contributed to its growing economy, creating a conducive environment for businesses to thrive.

As a result, Poland has seen a significant increase in foreign direct investment in recent years, with many multinational companies establishing their regional headquarters in the country. This has created a high demand for skilled professionals in various fields, including finance, IT, and engineering, among others.

The steady economic growth has also translated to higher salaries and better working conditions for employees, making Poland an attractive destination for job seekers looking for a better quality of life.

Diversity and quality of life 

Poland's diversity is another factor that can attract talent to the country. The country has a long and complex history, with influences from various cultures and traditions. As a result, Poland is home to diverse communities, each with its own unique customs, languages, and lifestyles. This diversity can make Poland an attractive destination for those seeking a multicultural experience, as it allows individuals to learn about and appreciate different perspectives.

Poland also offers a high quality of life, which can be an attractive factor for job seekers. The country has a well-developed healthcare system, with modern hospitals and clinics that provide comprehensive medical care. Additionally, Poland is known for its safety, with low crime rates and a strong police force. The country also provides excellent social services, including affordable housing, education, and childcare.

Poland's natural scenery is also a draw for many people. The country has beautiful forests, lakes, and mountains, which offer a variety of outdoor recreational activities. In addition, Poland has a rich cultural heritage, with many historic sites, museums, and festivals that celebrate the country's traditions and history. Finally, Poland's cities offer a vibrant social scene, with plenty of restaurants, bars, and entertainment options for residents to enjoy.

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:

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. 

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.

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.

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.

pexels-fauxels-3184357 (1)

Source: Pexels/fauxels

What are my options for hiring in Poland?

Airswift provides a variety of employment solutions and professional advice for international companies looking to hire employees in Poland. Our services make the hiring process simple, efficient and fully compliant with Polish laws.

Our extensive knowledge and expertise enable us to reduce risk when shouldering the administrative responsibilities of onboarding new employees, giving you more time to focus on business growth.

Talent acquisition

talent-acquisition

Working with an in-country talent acquisition specialist in Poland helps you source high-quality candidates in the country's competitive landscape.

Our contract hire services can help you fill temporary roles and provide your business with the agility to respond to shifts in needs and market demand.

For long-term hiring needs, Airswift’s professional search service can help you discover talented candidates for permanent employment within your business.

Employer of record

ICON-MISC-SignHandPen-GRADIENT

If your business needs to hire remote staff without setting up an entity, a Poland Employer of Record makes this process simple, with minimal compromise on expenses and time.

Working with an experienced Employer of Record in Poland allows you to bypass the complications of setting up a legal entity in-country by appointing a partner to oversee payroll management and manage mandatory benefits. All whilst ensuring that you stay compliant with Polish labour law. 

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*Although the information provided has been produced from sources believed to be reliable, no warranty, express or implied, is made regarding the accuracy, adequacy, completeness, legality or reliability of any information. For the latest information and specific queries regarding particular cases, please contact our team.

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