Poland is a magnificent Central European country with a rich history and culture. The country has a diversified economy, with the service sector accounting for a substantial portion of its profits. The GDP is expected to experience an increase, reaching a growth rate of 2.7% in the year 2024. Hence, businesses from all over are attracted to the Polish market.
However, to hire in Poland, companies must understand Polish labor laws and local regulations that affect employment in Poland. Read on to learn more.
Labor Laws in Poland
The Polish labor laws govern the codes of conduct to be implemented in businesses hiring employees. These laws and regulations outline how to hire employees in Poland and manage all aspects of employment.
Working Hours
- Working hours in Poland are capped at 40 hours per week.
- Employees are expected to work 5 days a week, typically from Monday to Friday.
Minimum Wage
- The minimum wage in Poland is PLN 3,490 per month.
Statutory Benefits
- Statutory benefits in Poland are applicable in the form of social security, unemployment fund, pension, paid annual leaves, and so on.
Data Privacy and Security
- Employers are not legally allowed to share private data with a third party without the concerned employee's legal reason or consent.
Payroll and Taxes in Poland
The payroll frequency in Poland is generally monthly. Other features related to payroll in Poland are discussed below:
Overtime Pay
- In Poland, employees working more than 8 hours a day or 40 hours a week are entitled to overtime pay.
| Condition |
Compensation Rate |
| Overtime (Regular Hours) |
150% of usual pay |
| Overtime (Between 10 pm and 6 am) |
200% of usual pay |
| Weekend or Public Holiday Work |
150% of usual pay |
- Employees can also ask for time off in exchange for overtime hours. In that case, they will get an hour off for each hour they work overtime.
13th Month Pay
- Employers don't need to pay the 13th month's pay to employees.
Employer and Employee Contributions
- Both employers and employees contribute to various schemes in Poland.
- The employer contribution rates are as follows:
| Insurance/Fund |
Rate of Contribution |
| Accident Insurance |
1.67% (For employers with up to 9 employees)
0.67% to 3.33% (For employers with more than 9 employees)
1.67% (For foreign employers)
|
| Employees Guaranteed Benefits Fund |
0.10% |
| Pension and Disability Insurance |
19.52% |
| Labor Fund |
2.45% |
| Employee Capital Plans |
1.5% |
- The employee contribution rates are:
| Insurance/Fund |
Rate of Contribution |
| Social Security |
13.71% |
| Healthcare |
9% |
| Employee Capital Plans |
2% (Individuals may opt for an additional contribution of up to 2%) |
| Solidarity Tax |
4% (For those earning more than 1 million PLN) |
Taxation Forms
- Employees should fill in and submit the Personal Income Tax Declaration or PIT form.
- The most common PIT form is PIT 37, which applies to those who do not have their own business and do not earn from foreign countries.
Employee Benefits in Poland
Employee benefits in Poland help improve employees’ quality of life. These include:
Leave Policy in Poland
The leave policy in Poland includes various forms of leave, such as annual, sick, maternity, and so on.
Paid Time Off:
- Statutory benefits in Poland include paid time off for employees based on their years of service.
| Duration of Employment |
Duration of Paid Leave |
| Less than 10 years |
20 days |
| More than 10 years |
26 days |
Public Holidays:
- There are 13 public holidays in Poland.
| Dates |
Days |
| January 1 |
New Year |
| January 6 |
Epiphany Day |
| March 31 |
Easter Sunday |
| April 1 |
Easter Monday |
| May 1 |
Labor Day |
| May 3 |
Constitution Day of 3 May |
| May 19 |
Whit Sunday |
| May 30 |
Corpus Christi |
| August 15 |
Assumption day |
| November 1 |
All Saint’s Day |
| November 11 |
Independence Day |
| 25 December |
Christmas (First Day) |
| 26 December |
Christmas (Second Day) |
Maternity Leave:
- Female employees can take 20 weeks of paid maternity leave in Poland.
- The leave starts 6 weeks before the due date and continues for 14 weeks after the child's birth.
- If an employee did not take a leave before the birth of their child, they are entitled to the entire 20 weeks of leave after childbirth.
- Any leave beyond 14 weeks can be transferred to the child's father.
Paternity Leave:
- Paid paternity leave in Poland is capped at 2 weeks.
- Paternity leave is available within the first 24 months following the child's birth.
- Employees can take their paternity leave at once or in two or more parts.
- However, they must inform their employers at least 7 days before taking such a leave.
Parental Leave:
- After completing maternity leave, employees are entitled to up to 41 weeks of paid parental leave.
- Parental leave may be utilized for the following reasons:
- Primarily by one of the parents
- Concurrently by both parents, the combined leaves cannot exceed 41 weeks for one child and 43 weeks for multiple deliveries.
- The leave is 100% of the employee's income for the first six weeks. 60% of the remaining period is paid.
- Parental leave can be taken continuously or in up to four periods, each lasting at least eight weeks.
- Parental leave is usable until the end of the calendar year when the child reaches six.
Sick Leave:
- Employees in Poland can take paid sick leave governed by the Social Insurance Code. The length of paid sick leave depends on the cause of leave and years of service.
- Sick leaves are paid for in the following ways:
- First 33 days: Employer should pay 80% of the concerned employee’s salary.
- After 33 days: The Social Insurance Institute in Poland pays 80% of the employee’s salary.
- Pregnant employees can take sick leave for up to 270 days before and after childbirth.
- Those with tuberculosis are eligible for sick leave for up to 270 days.
- Employees injured in accidents commuting to or from work can take sick leave for up to 182 days
Compassionate Leave
- It is an unpaid absence that is based on the conditions.
- Death and funeral of parents, spouse, or child- two days off.
- A 1-day leave for the death and funeral of a sibling, sister, grandfather, grandmother, father-in-law, or any person who relied on the employee or was under his direct care.
Childcare Leave
- Employees may take up to 36 months of unpaid childcare leave. However, they have to fulfill the following criteria:
- Employees with the company for at least six months are eligible for childcare leave.
- Parents may take leave in one continuous block or up to five separate blocks.
- Both parents can take time off at the same time.
- The leave extends until the calendar year-end when the child turns six.
- Out of 36 months, 34 are family entitlements, with one month each for the mother and father individually.
Job seeking Leave
- Employees laid off by their employer in Poland can have job-seeker leave.
- 2 working days' leave if the notice period is two weeks or one month.
- 3 working days of leave if the notice period is three months.
Training Leave
- The duration of training leave is decided by the sort of training received by the employee.
- Extramural exams: 6 days
- Confirmation of professional qualification: 6 days
- Diploma dissertation and examination: 21 days
Special Leave
- Exemptions from work are legal gaps in the execution of a job. They are frequently referred to as special leave.
- These exclusions are given in the following circumstances:
- to deal with personal and family issues
- to carry out social or civic responsibilities
Carry Forward of Leaves
- The leaves can be carried to the next year.
- Leftover annual leave may be carried forward for three years.
- Unused yearly vacation must be used by September 30th of the third year after accrual, or the employee loses the right.
- Employees who quit their work before using their accrued annual leave may be eligible for compensation for the unused time.
Probation Period
- The probation period in Poland is usually a maximum of three months.
- In Poland, there is no minimum probation period; nonetheless, it should be emphasized that the trial period contract is separate.
- Employees terminated during probation have to serve a notice period:
| Probation Period |
Notice Period |
| ≤ 2 weeks |
3 days |
| > 2 weeks |
1 week |
| 3 months |
2 weeks |
Notice Period
- The length of notice period during and after probation depends on the direction of employment:
| Length of Service |
Notice Period |
| Less than 6 months |
2 weeks |
| More than 6 months but less than 3 years |
1 month |
| More than 3 years |
3 months |
Cost of Hiring an Employee in Poland
The cost of hiring in Poland depends on various factors, including the size and requirements of the business, training, onboarding, and others. If you plan to establish a subsidiary in Poland, it can add to the cost of hiring.
Establishing a Subsidiary vs. Employer of Record (EOR) in Poland
| Parameters |
Establishing a Subsidiary |
Partnering with Skuad |
| Initial Cost |
High due to various fees like legal fees, set up fees, etc. |
Much lower since Skuad already has an established presence. |
| Duration for setup |
May take months to set up a local legal entity in Poland |
Almost instantaneous due to Skuad’s existing infrastructure. |
| Employment Liabilities |
Increased risk of fines and penalties due to strict compliance requirements. |
Skuad manages employment compliance. |
| Operational Overhead |
Subsidiaries must handle overhead costs, including HR, payroll and others. |
Skuad helps you take care of operating costs at a nominal fee. |
| Flexibility |
Minimum flexibility and suitable for long-term commitments. |
Allows flexibility for both short and long-term commitments. |
| Local Compliance |
The subsidiary and the parent company are at direct risk. |
Skuad manages compliance risks for your company. |
| Parameters |
Partnering with Skuad |
Establishing a Subsidiary |
| Initial Cost |
Much lower since Skuad already has an established presence. |
High due to various fees like legal fees, set up fees, etc. |
| Duration for setup |
Almost instantaneous due to Skuad’s existing infrastructure. |
May take months to set up a local legal entity in Poland |
| Employment Liabilities |
Skuad manages employment compliance. |
Increased risk of fines and penalties due to strict compliance requirements. |
| Operational Overhead |
Skuad helps you take care of operating costs at a nominal fee. |
Subsidiaries must handle overhead costs, including HR, payroll and others. |
| Flexibility |
Allows flexibility for both short and long-term commitments. |
Minimum flexibility and suitable for long-term commitments. |
| Local Compliance |
Skuad manages compliance risks for your company. |
The subsidiary and the parent company are at direct risk. |
Top Job Listing Sites in Poland
With Skuad’s help, employers can find the top talent in Poland, in every field. In addition to finding the most eligible candidates, recruiters can manage all aspects of employee management on one unified platform. Other platforms that can help you find candidates are:
- Pracuj.pl: This is one of Poland's most popular job posting sites, attracting over 11 million monthly visitors. This website allows job posts to stay active for 30 days.
- OLX: OLX is a reliable job posting website in Poland with a transparent pricing model.
- GoWork.pl: A distinguishing feature of GoWork.pl is that it offers PR articles, wherein a company’s profile is created by the GoWork team and sent to prospective candidates for better visibility.
- Lento: This website allows recruiters to post up to 3 free ads lasting 90 days.
- Praca.pl: Praca has a multichannel package allowing Facebook and Google ad promotion. Furthermore, Praca lets recruiters brand their postings and add videos to all their ads.
Compliance Risks of Hiring Employees in Poland
Employers can face the following penalties for not obeying the Polish labor laws:
- A fine between PLN 1,000 and PLN 30,000 if an employer imposes any penalty on an employee other than those mentioned in the country’s labor code.
- The same fine between PLN 1,000 and PLN 30,000 is also imposed in case an employer fails to pay salary within time, fails to pay for statutory benefits, makes illegal deductions from salaries, violates working hours, or an employee’s rights related to parenthood.
How to Hire Talent in Poland
To hire employees in Poland, recruiters can explore one of the following ways:
Option 1: Establishing a Subsidiary
You can opt to open a subsidiary in Poland if you want to exercise greater control over your company and oversee the hiring and onboarding process yourself. Subsidiaries also allow businesses to operate for long terms in a country. However, the compliance risks and resource consumption are higher with this one.
Option 2: Hiring on a Contractual Basis
Hirings based on contracts is a better fit for companies with short projects in the country. In this case, care should be taken to draft contracts by the applicable laws.
Option 3: Partner with an Employer of Record (EOR)
An EOR like Skuad in Poland is the best option for short-term and long-term project goals. Skuad helps minimize compliance risks while improving hiring practices, saving time and resources, and aiding with all aspects of employee management.
Hiring Trends in Poland
The following hiring trends are impacting the Polish job market:
- Companies that are looking to hire employees in Poland offer hybrid work systems to ensure hiring the top candidates and employee retention.
- Many companies opt for 4-day work weeks to enhance employee satisfaction and productivity while saving on costs.
- Companies are focusing on employee well-being by implementing policies related to tolerance, employee rights, diversity, and much more. Furthermore, recruiters also aim for gender-balanced hiring to ensure equal representation in the workplace.
Hiring in Poland Made Simpler with Skuad
The Polish labor laws outline how to manage all aspects of employer-employee relations. However, it may be challenging for international businesses to comply with Poland's legal framework when hiring.
Skuad, a global EOR platform, is the perfect partner for companies wishing to hire and operate in Poland. Skuad offers a robust and reliable infrastructure to hire and manage employees in compliance with all laws, regulations, and directives. To know more, book a demo today!
FAQs
How to hire in Poland?
To hire employees in Poland, you can choose to establish a local entity. Establishing a local entity offers direct control but involves navigating Poland's employment laws and administrative processes. Alternatively, partnering with an Employer of Record in Poland allows for a hassle-free approach, handling all legal and HR aspects of Poland employment.
What are the employment laws in Poland?
Poland's employment laws stipulate a maximum 40-hour work week, with provisions for overtime compensation. Employees are entitled to paid annual leave, maternity and parental leave, and sick leave. The laws also enforce minimum wage standards and mandatory social security contributions. For employers, understanding these laws is crucial in how to hire employees in Poland, ensuring legal compliance and fostering a fair workplace environment.
Who is legally authorized to work in Poland?
Both EU and non-EU citizens are legally authorized to work in Poland. However, non-EU citizens would have to apply for a work visa in Poland to work. Additionally, they would also need work permits.
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