Poland is an ideal location for companies looking to expand operations overseas, with its central location in the heart of Europe and one of the largest economies in the EU. The population of Poland is highly educated, and employers have no trouble finding skilled, multi-lingual employees.
There are challenges to managing payroll and compliance in Poland, as there are unique tax laws, compliance guidelines, and reporting requirements. All employers with a physical presence in Poland must withhold tax and social insurance from employee salaries, and although the system was designed to be easy to manage, there are many intricacies in the calculations for employers.
Payroll and Tax Considerations:
- The monthly minimum wage is PLN 2,800 and the hourly wage is PLN 18.30
- Overtime cannot exceed 150 hours each calendar year. Overtime is only granted in extraordinary situations or for special employer needs
- Employment contracts must be in writing
- The notice period for termination depends on the employee length of service and ranges from 2 weeks to 3 monthsÂ
- Companies with more than 50 employees must create a works council to maintain employee rights
- Residents are taxed on all income inside and outside Poland. If an individual earns less than PLN 85,528 annually, they are taxed at 17%, while those earning more are taxed PLN 14,539 plus 32% of all income exceeding PLN 85,528
HR and Statutory Requirements
- Workers with less than 10 years of service receive 20 working days of annual leave per year, while workers with more than 10 years of service receive 26 working days of annual leave per year
- Employees are entitled to 33 days of paid sick leave from their employer each calendar year
- If sickness lasts more than 33 days, the employee is entitled to benefits paid from the social insurance funds
- Maternity leave is 20 weeks after giving birth to one child, but is extended for multiple births. Six weeks can be used before childbirth
- A working father caring for a child is entitled to 2 weeks paternity leave until the child reaches 24 months old and is granted with an employee written request
- There are 3 pillars in the current pension system. Two are mandatory and the third is voluntary
- The normal retirement age 60 years for a woman and 65 years old for men. Pension is calculated using the number of contributions and the returns from investments divided by the life expectancy of the insured
HR and Statutory Requirements
- January 1 – New Year’s Day
- January 6 – Easter Sunday
- April 17 – Easter Sunday
- April 18 – Easter Monday
- May 1 – Labor Day / May Day
- May 3 – Constitution Day
- June 5 – Whit Sunday
- June 16 – Corpus Christi
- August 15 – Assumption of Mary
- November 1 – All Saints’ Day
- November 11 – Independence Day
- December 25 – Christmas Day
- December 26 – Second Day of Christmas
Blue Marble can help you simplify your payroll and compliance in Poland with an easy-to-use, cloud-based payroll platform, customized reporting, and integrated global resources. Get real-time views of your payroll across all countries and currencies with automated updates to in-country regulation changes. Our unique hybrid service model gives you a dedicated US-based team and in-country experts to help when questions come up. To learn more about how we can help simplify your operations in Poland, click here