Payroll & Employment Guide Poland

Employment contracts in Poland must be in writing and signed before the employee begins work. Contracts can be indefinite, fixed-term, or for probation, and they must clearly outline key terms, including salary, job duties, and working conditions.

Notice periods: Up to 3 months

Termination of employment: Can occur through mutual agreement, resignation, dismissal for cause, or redundancy. Certain legal procedures must be followed to terminate employment lawfully.

Employees in Poland are entitled to a range of benefits, both mandatory and optional. These benefits are essential for attracting and retaining top talent in a competitive market.

Mandatory benefits: Social security contributions (covering retirement, disability, and health insurance), paid vacation leave, etc.
Common perks: Private health insurance, life insurance, multisport or fitness benefits, meal vouchers, flexible working hours, professional development, company events, etc.

Leave policies: Annual leave, sick leave, maternity leave, paternity leave, parental leave, and unpaid leave.

Employers in Poland are responsible for withholding income taxes and paying social contributions to the Social Insurance Institution (ZUS). Employees are taxed progressively, and social contributions are split between the employer and the employee.

• Personal Income Tax (PIT): In Poland, Personal Income Tax (PIT) is structured as a progressive system with two main tax brackets: 12% for annual income up to PLN 120,000 and 32% for income exceeding that amount. There is also a tax-free allowance of PLN 30,000 annually. Several PIT forms are used depending on the source of income. PIT-37 is the most common for income from employment and pensions, PIT-36 is used by self-employed individuals and those with non-agricultural business income, and PIT-28 applies to those using flat-rate taxation on business activities. The PIT filing deadline is April 30 of the following year.
• Corporate Income Tax (CIT): Standard rate of 19%, with a reduced rate of 9% for small businesses.
• Value Added Tax (VAT): Standard rate of 23%, with reduced rates of 8% and 5% for certain goods and services.
• Social security contributions: Paid by both employers and employees, covering pensions, health, and other insurances.
• Withholding tax: Applied to dividends, interest, and royalties, typically at 19%, but may be reduced under Double Tax Treaties.

Poland has clear rules around payroll processing, frequency of salary payments, and reporting obligations. Employers must pay employees at least once per month on a fixed date and ensure timely tax and social contribution payments.

Salary payment deadline: At least once per month, date agreed in contract

Taxes and contributions payment deadline: By the 15th of the following month

Payroll declarations deadline:

• PIT-4R: by the 20th of the following month
• ZUS DRA & ZUS RCA: by the 10th of the following month

Payroll currency: PLN

Employment in Poland is governed by the Polish Labour Code, which outlines everything from employment types and working hours to employer obligations and workplace safety standards. Staying compliant means understanding these regulations thoroughly.

Total employment cost:

• Employer’s social security contributions: 19.48% - 22.14%
• Employer’s health insurance costs: 0
• Employees’ social security contributions: 22.71%
• Employee’s health insurance costs: 9%

Minimum wage: PLN 4,666/month

Probation period: Up to 3 months

Poland allows citizens from EU/EEA countries to work freely. For non-EU citizens, work permits and/or residence permits are typically required. The process can vary depending on the applicant’s nationality, job type, and contract duration.

Types of permits: EU blue card, and work permit type A

Process length: 4-10 months

Process cost: Starts at* 1450 EUR

*Please note that additional costs may apply after reviewing individual use cases.

Using EOR services in Poland allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:

• Legal employment and contracts
• Payroll processing
• Tax withholding
• Benefits administration
• Onboarding/offboarding employees

Using PEO services in Poland provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Poland but need support to manage their workforce operations, including:

• HR support and workforce administration
• Payroll and benefits management
• Compliance and local labour law guidance
• Employment contracts assistance

Native Teams provides a payroll calculator adjusted per Poland’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Poland with our localised calculator. Designed to meet all payroll and compliance requirements.