Payroll and Benefits Guide - Poland

Poland
null

Currency

Polish Złoty (PLN)
null

Capital

Warsaw
null

Employer Taxes

19.48% – 22.14%
null

Date Format

dd/mm/yyyy
null

Fiscal Year

1 Jan – 31 Dec

Fun Facts

Poland has a population of over 38 million people, making it the 9th most populous country in Europe.

The Wieliczka Salt Mine near Kraków is one of the world’s oldest salt mines.

The annual Pierogi Festival held in Kraków celebrates the beloved Polish dumplings.

Poland has a strong tradition of horse breeding and equestrian sports.

Poland has a long-standing love for football (soccer).

Polish-born scientist Marie Curiewas the first woman to win a Nobel Prize.

Poland

Contributions

Employee Payroll Tax

Contribution TypeRate
Retirement9.76%
Pension1.50%
Sickness2.45%
Health Insurance9.00%

Employer Payroll Tax

Contribution TypeRate
Retirement Pension9.76%
Disability Fund6.50%
Accident Fund0.67% – 3.33%
Labor Fund2.45%
Guaranteed Employee Benefits Fund0.10%

Payroll

Payroll Cycle

Salaries are paid on a monthly basis and must be paid no later than the 10th of the following month.

13th Salary

There are no legal requirements for 13th-month payments.

Work Hours and Week

The maximum duration of the standard work week is 40 hours, eight hours per day.

Overtime

If work time limits are passed, overtime compensation is compulsory. The limit for overtime hours in a work week is 48 hours, cannot exceed 150 hours annually. Overtime compensation is 150.00% of the regular pay, and 200.00% during night hours, Sundays, or non-working days.
Poland

Leave

Paid Time Off

The length of paid annual leave depends on the employee’s seniority. Employees with less than 10 years are entitled to 20 days of annual leave, those who have 10 years or more are entitled to 26 days.

Public Holidays

If a public holiday occurs on a Saturday, the worker must be provided with an additional day off in exchange.

Sick Days

Paid sick leave is granted to all employees in accordance with the duration of their service and their age, as stipulated in the employment contract.

Maternity Leave

The Social Security Institute covers all maternity pay at 100% of the employee’s regular salary rate.

Maternity leave cannot start earlier than six weeks before the due date but can start later or even after birth and continue straight after. Employees should take a minimum of 14 weeks of maternity leave after childbirth before returning to work, and they have the option to transfer any untaken leave beyond 14 weeks to the child’s father.

Adoption leave may be used by both the adoptive father and the adoptive mother. However, under the labor code, the leave can’t be taken simultaneously by both parents.

Paternity Leave

Fathers are entitled to two weeks of paid paternity leave within the first 24 months after the child’s birth or from the date of adoption before the child is seven years old.

An employee can take the leave in a maximum of two installments of one week each, and Social Security pays the leave at a rate of 100.00% of the employee’s regular salary.

Parental Leave

Employees are entitled to up to 32 weeks of parental leave. Leave can be granted to male and female employees and adoptive parents after maternity leave.

For the first six weeks, the leave is paid at 100.00% of the employee’s salary (eight weeks in case of multiple children and three weeks if adopting an older child). The remaining time is paid at 60.00% of the employee’s salary, which is covered by Social Security. However, should the employee submit the official written request for parental leave no later than 21 days after the birth, the pay increases to 80.00% of the employee’s salary for the whole period, paid by Social Security.

Termination

Termination Process

The termination process varies according to the employment agreement and collective agreement in place and is based on the type of contract and reason for termination.

Notice Period

In Poland, the notice period for a temporary or permanent employee is dependent on the employee’s length of service. 0 – 6 months of service – 2 weeks’ notice. 6 months – 3 years of service – 1 month’s notice. More than 3 years of service – 3 months’ notice.

Severance Pay

For employers with more than 20 employees or for employees who have been dismissed by fault of the employer, the severance pay is dependent on the employee’s length of service. 1 month severance pay – less than two years of employment. Two months’ severance pay – between two and eight years of employment. Three months’ severance pay – over eight years of employment.

Probation Period

Probation Period

Probation or trial periods are generally set within the employee’s employment contract, however, standard practice in Poland is three months.

Immigration

If you are a non-EU resident who wishes to work in Poland, you must first obtain a work permit. The work permit is only applicable to the job at the time of application. A new application will need to be sought should the employee change jobs. A work permit is only valid for three years.

Poland has five different types of work visas:

  • Type A – If you find employment based on an employment contract or civil law contract with an employer with an office registered in Poland. This is the most popular work permit.
  • Type B – This work permit is valid if you are a board member and residing in Poland for a total period that exceeds six months within 12 subsequent months.
  • Type C –You can apply for this work permit if you are sent to Poland by a foreign employer for more than 30 days in a calendar year to work for the foreign employer’s subsidiary or branch office in the country.
  • Type D – You are eligible for this visa if a foreign employer sends you to work in export services temporarily. The foreign employer must not have a branch or subsidiary of its own in Poland.
  • Type E – You can apply for this visa if you take up work-related tasks that do not fall into any of the above four categories.

VAT

The standard rate of VAT in Poland is 23.00%.