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 considerations in Poland:
- The 2019 minimum wage is PLN 2250 per month (USD $561), rising to PLN 2600 per month in 2020
- Employment contracts must be in writing
- Collective bargaining agreements can be created at a company and industry level
- Companies with more than 50 employees must create a works council to maintain employee rights
- Registration with the Social Security office (ZUS) is required once an employee has been hired
- Employers must collect work certificates, PIT-2 forms, salary and bank account information, and other data to get started
- Employers must apply for work permits on behalf of all foreign workers who are not EEA nationals
- Under the Act of March 2nd, 2020 on Specific Arrangements for Preventing, Counteracting and Combating COVID-19, other Communicable Diseases and the Crises They Cause, Poland has made the following changes
- The act has implemented new provisions that provide additional benefits to the employees. If the insured employee is relieved of employee’s duties due to the necessity to take personal care of a child in connection with the closure of crèches, children’s clubs, kindergartens and schools, the employee shall be entitled to an additional care allowance paid by ZUS (Social Security Institution) for a period not exceeding 14 days
Blue Marble can help you simplify your payroll in Poland, or get the right tools in place to begin operations there. Our payroll technology is easy-to-use and offers customized, global reporting across all countries and currencies. Get a real-time view of your payroll each month and stay ahead of changing regulations. We have a unique, hybrid service model with a US-based team and direct access to in-country providers to help when questions come up. Our technology updates with each regulatory change, so you can ensure compliance for your payroll in Poland. To learn more about how we can help simplify your operations, click here