Key Facts to Hire in Poland
Warsaw
Capital
Polish złoty (PLN)
Currency
Polish
National language
37,673,000
Total population
4.87%
GDP growth
0.63%
Total country’s GDP world share
Monthly
Payroll frequency
40 hours per week
Total working hours
Overview in Poland
Poland, situated in Central Europe, has a rich history marked by resilience and transformation. From its medieval origins as a powerful kingdom to its partitioning in the 18th century, occupation during World War II, and subsequent communist rule, Poland has emerged as a vibrant democracy and economic powerhouse in the region. Since joining the European Union in 2004, Poland has experienced significant economic growth, leveraging its strategic location, abundant natural resources, and skilled workforce. The country’s economy has shifted from agriculture-dependent to service-oriented, with a strong manufacturing base and a rapidly growing tech sector.
Poland’s demographic landscape presents both opportunities and challenges, with an aging population offset by recent immigration, particularly from Ukraine. The workforce is characterized by high educational attainment and increasing specialization in fields such as IT, engineering, and finance. Recent political changes have influenced economic policies, sometimes creating tensions with EU regulations, but overall, Poland has maintained robust growth and low unemployment.
The workplace culture in Poland blends traditional hierarchical structures with more modern, Western-influenced practices. Communication tends to be direct, with a growing emphasis on teamwork and innovation, especially in international companies and startups. Polish workers are known for their strong work ethic, technical skills, and increasing adaptability to global business practices. Despite challenges such as brain drain to Western Europe and ongoing debates about judicial reforms, Poland continues to attract foreign investment and remains a key player in Central European economics and politics.
Employer of Record in Poland
Hightekers is a global Employer of Record service that helps you hire employees in Poland without the hassle of setting up a local entity. We handle all the legal and compliance matters as the official employer for your Poland team, allowing you to concentrate on growing your business.
How does it work?
When you hire employees in Poland through Hightekers, we take on the role of the legal employer for your staff. This allows us to manage all employer responsibilities while you continue to oversee the daily operations and management of your employees.As the company, you oversee direct relationships with employees, assigning tasks and managing their performance. Hightekers handles local payroll, contracts, HR, benefits, and compliance matters.
Responsibilities of an Employer of Record
Hightekers is responsible for creating and managing employment contracts, running monthly payroll, providing local and global benefits, ensuring 100% local compliance, and offering local HR support. This comprehensive approach ensures that all legal and administrative aspects of employment are handled efficiently and in accordance with Polish regulations.
Responsibilities of the company that hires the employee
As the company that hires the employee through the Employer of Record, you are responsible for the day-to-day management of the employee, including work assignments, performance management, and training and development. This allows you to focus on integrating the employee into your team and achieving your business objectives while Hightekers handles the administrative aspects of employment.
Taxes in Poland
Poland operates a progressive tax system, with various taxes applicable to individuals and businesses. Here’s an overview of the key elements:
Income Tax: Poland has a progressive income tax system with two tax rates: 12% for annual income up to PLN 120,000, and 32% for income exceeding this amount. Employers are responsible for withholding income tax from employees’ salaries.
Corporate Income Tax: The standard corporate income tax rate is 19%. Small businesses with annual revenue below €2 million can benefit from a reduced rate of 9%. Deductible expenses include business-related costs, depreciation, and certain employee benefits.
Social Security Contributions: Employers contribute approximately 20.61% of an employee’s gross salary for social security, while employees contribute about 13.71%. These cover pension, disability, sickness, and accident insurance.
Value Added Tax (VAT): The standard VAT rate is 23%. Reduced rates of 8% and 5% apply to certain goods and services, while some items are VAT-exempt or zero-rated. Businesses with annual turnover exceeding PLN 200,000 must register for VAT.
Tax Incentives: Poland offers various incentives, including special economic zones with tax exemptions, R&D tax credits, and the IP Box regime with a preferential 5% tax rate on qualified intellectual property income.
Other Taxes:
- Real estate tax: Rates vary by property type and location.
- Transfer tax: 2% on property sales not subject to VAT.
- Excise duty: Applies to specific goods like alcohol and tobacco.
Poland also has a “solidarity levy” of 4% on annual income exceeding PLN 1 million. The country continually updates its tax system to align with EU regulations and promote economic growth.
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Leave in Poland
Leave patterns in Poland, like in many countries, are shaped by cultural, legal, and economic factors. Here’s an overview of common leave types in Poland:
Annual Leave: 20 days for employees with less than 10 years of work experience, 26 days for those with 10 or more years, allowing time for rest and personal activities.
Sick Leave: Up to 182 days per year (or 270 days for tuberculosis), supporting employee health and recovery.
Public Holidays: 13 paid public holidays annually, celebrating national and religious occasions.
Maternity Leave: 20 weeks for a single birth, with additional weeks for multiple births, protecting maternal health and promoting child bonding.
Paternity Leave: 2 weeks, to be taken within 24 months of the child’s birth, encouraging father-child bonding.
Parental Leave: Up to 32 weeks (for one child) or 34 weeks (for multiple births), available to either parent after maternity leave.
Bereavement Leave: 2 days for immediate family members, providing time for grieving and funeral arrangements.
Force Majeure Leave: 2 days per year for urgent family matters, allowing employees to address unexpected situations.
Unpaid Leave: Available upon agreement between employer and employee, for various personal reasons.
Poland also offers specific leaves, such as Training Leave (up to 6 days per year for professional development) and Care Leave (up to 14 days per year to care for a sick family member). While these leave types are common in Poland, specific policies may vary between employers and sectors within the country.
Benefits in Poland
Poland offers a comprehensive social security system that provides a wide range of benefits to its citizens and residents. Employers are required to contribute to these programs, ensuring employees have access to essential benefits.
Core Benefits:
- Healthcare: Employers often supplement the mandatory social security healthcare coverage with private health insurance plans to provide broader coverage and reduce out-of-pocket costs.
- Pensions: Poland has a three-pillar pension system, consisting of state pensions, employer-sponsored pension plans, and individual retirement savings accounts.
- Paid Time Off: Employees in Poland enjoy generous paid time off allowances, including annual leave, public holidays, and paid sick leave.
- Parental Leave: Both parents in Poland are entitled to substantial paid leave for newborns, ensuring that they can take time to care for their children.
- Disability Insurance: The Polish social security system provides disability insurance that covers income loss due to work-related or non-work-related disabilities.
Additional Benefits:
- Meal Vouchers: Many Polish companies offer meal vouchers to employees, which can be used to offset food costs.
- Company Cars or Mobility Budgets: Company cars or mobility budgets are popular perks in Poland, providing employees with transportation options.
- Flexible Working: Flexible working arrangements, such as remote work or flexible hours, are becoming increasingly prevalent in Polish workplaces.
Note: The specific benefits offered may vary depending on the company’s size, industry, and collective bargaining agreements. While the social security system provides a strong foundation, additional benefits can enhance employee satisfaction and attract top talent.
Workers Rights in Poland
In Poland, worker rights are primarily governed by the Labor Code and various EU directives. Employment termination requires notice periods based on tenure, with specific protections against unfair dismissal. Anti-discrimination laws cover various grounds, including gender, age, and disability. The standard work week is 40 hours, with mandatory rest periods and overtime compensation. Poland enforces a minimum wage system, regularly adjusted for inflation, and ensures equal pay for equal work.
Leave entitlements are generous, including paid annual leave, public holidays, and various types of special leave such as maternity and paternity leave. Occupational health and safety regulations are strict, with employers required to ensure safe working conditions. Poland’s social security system provides comprehensive coverage, including healthcare, unemployment benefits, and pensions. Dispute resolution mechanisms include labor courts and mediation services. Workers have the right to join unions and engage in collective bargaining, with trade unions playing a significant role in labor relations.
Recent reforms have focused on work-life balance and protecting vulnerable workers, including new regulations on remote work introduced in response to the COVID-19 pandemic. Special provisions exist for specific sectors and categories of workers, such as temporary agency workers and young employees. Poland’s cultural context, including its strong Catholic tradition, influences some aspects of labor practices, such as Sunday trading restrictions. The country’s ongoing economic development and EU membership continue to shape the evolution of worker rights, with a trend towards increased protection and alignment with EU standards.
Agreements in Poland
In Poland, employment agreements are primarily governed by the Labor Code and various EU directives. The country recognizes several types of employment contracts, including indefinite-term contracts (umowa o pracę na czas nieokreślony), fixed-term contracts (umowa o pracę na czas określony), and probationary contracts (umowa na okres próbny). As of 2022, fixed-term contracts are limited to a maximum duration of 33 months, with a maximum of three such contracts between the same parties. Indefinite-term contracts are the most common and provide the highest level of job security.
Key terms and conditions in Polish employment contracts typically include job description, working hours, remuneration, leave entitlements, and notice periods. The standard work week is 40 hours, with overtime regulations in place. Contracts must comply with the national minimum wage, which is regularly adjusted. Legal compliance is crucial, with contracts required to adhere to both Polish labor laws and relevant EU standards. Dispute resolution mechanisms often involve internal procedures, followed by labor courts or mediation services. Confidentiality clauses are common in Polish contracts, but non-compete clauses are subject to specific regulations, including the requirement for compensation during the non-compete period.
Amendments to employment agreements generally require mutual consent, often formalized in writing. Termination procedures are regulated by law, with notice periods varying based on length of service. Poland’s strong trade union tradition influences employment practices, with collective agreements playing a significant role in many sectors. Recent reforms have focused on work-life balance and protecting vulnerable workers, including new regulations on remote work introduced in response to the COVID-19 pandemic. It’s important to note that while this overview provides a general understanding of employment agreements in Poland, specific terms can vary based on individual circumstances, collective agreements, and company policies. Employers and employees are advised to seek legal counsel to ensure their agreements comply with current Polish labor laws and EU directives.
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Remote Work in Poland
In Poland, remote work is regulated by the Labor Code, with recent amendments in 2023 providing a comprehensive legal framework. Employers must establish internal regulations for remote work, including health and safety guidelines, equipment provisions, and cost reimbursements. The country’s technological infrastructure supports remote work, with widespread broadband internet access and a growing IT sector.
Employers are responsible for ensuring data protection and privacy compliance, adhering to both Polish and EU regulations, including GDPR. Remote work agreements must be in writing, specifying the location, duration, and terms of remote work. Flexible work arrangements are encouraged, with options for hybrid models. Tax implications for remote work within Poland are minimal, but cross-border remote work may have more complex considerations.
Polish culture is adapting to remote work, with a growing acceptance of flexible arrangements. Best practices include clear communication, regular check-ins, and providing necessary tools and training for remote employees. Employers should also be mindful of work-life balance and potential isolation issues. As remote work continues to evolve in Poland, companies are advised to stay informed about legal updates and adapt their policies accordingly to maintain compliance and support employee well-being.
Working Hours in Poland
In Poland, working hour regulations are governed by the Labor Code, which sets standards for employment conditions and worker protection. The standard working week is 40 hours, typically spread over five days, with a maximum of 8 hours per day. However, some flexibility is allowed in scheduling these hours.
Overtime is permitted but limited to 150 hours per calendar year. Employees must receive additional compensation for overtime work, generally 50% extra for weekdays and 100% for Sundays and holidays. The total working time, including overtime, cannot exceed 48 hours per week on average over a reference period.
Different types of shifts are recognized, including day, night, and rotating shifts. Night work is defined as work performed between 9 PM and 7 AM, and employees working at night are entitled to additional compensation.
Employees are entitled to at least 11 hours of uninterrupted rest between workdays and 35 hours of uninterrupted rest each week. For work exceeding 6 hours, a 15-minute paid break is mandatory. If work exceeds 9 hours, an additional unpaid break of at least 15 minutes may be introduced.
Weekend work is allowed but must comply with the weekly rest period regulations. Employees should have at least one Sunday off in every four weeks.
Health and safety standards are strictly enforced in Poland. Employers must conduct regular risk assessments, provide safe working conditions, and ensure proper training for employees. Special considerations include ergonomic workstations, proper lighting, and measures to prevent work-related stress.
The National Labor Inspectorate (Państwowa Inspekcja Pracy) oversees compliance with labor laws and conducts regular inspections. Violations can result in fines or other penalties for employers. Overall, Polish labor regulations aim to balance worker protection with the needs of a modern, flexible economy.
Salary in Poland
In Poland, salaries are influenced by factors such as education, experience, industry, and location, with major cities like Warsaw offering higher wages. The country has a steadily increasing minimum wage, set at 3,600 PLN per month for full-time employees in 2023. Resources like Pracuj.pl, GoldenLine, and the Polish Central Statistical Office provide salary information.
Employee compensation typically includes base salary, statutory bonuses, and often additional benefits like private healthcare or sports packages. Payroll practices involve monthly salary payments, with employers responsible for income tax and social security contributions. Poland has strict health and safety standards regulated by the Labor Code and overseen by the National Labor Inspectorate.
The Polish tax system includes a progressive income tax with rates of 17% and 32%, along with a tax-free allowance. Social security contributions are shared between employers and employees. Special considerations in the Polish job market include a growing emphasis on work-life balance and increasing demand for skilled professionals in IT and other high-tech sectors.
Recent economic developments have led to wage growth in many sectors, particularly in skilled positions. The Polish labor market is dynamic, with a trend towards more flexible working arrangements and a focus on employee development and retention strategies.
Termination in Poland
Legal Basis:
Employment termination in Poland is governed by the Labor Code, which outlines specific procedures and protections for both employers and employees. This legal framework ensures fair treatment and compliance with labor laws throughout the termination process.
Notice Periods:
Notice periods vary based on contract type and length of employment. For indefinite contracts, notice periods range from 2 weeks for less than 6 months of employment, to 1 month for 6 months to 3 years, and 3 months for over 3 years. Fixed-term contracts require 2 weeks’ notice for less than 6 months and 1 month for 6 months or more. Probation periods have shorter notice requirements.
Severance Pay:
Severance pay is mandatory only in mass layoffs or when termination is due to reasons not attributable to the employee, ranging from 1 to 3 months’ salary depending on length of service. Termination procedures require written notice stating the reason for termination, consultation with trade unions for unionized employees, and special protection for certain employee groups such as pregnant women and pre-retirement employees.
Termination Procedures:
Employers must provide valid reasons for termination and cannot terminate during protected periods like maternity or sick leave. Specific procedures must be followed for disciplinary terminations. Employees resigning are subject to the same notice periods as employer terminations but are not entitled to severance pay. Immediate termination is possible if the employer seriously breaches their obligations.
Employers Terminating Employees:
Special considerations apply to mass layoffs, which have additional requirements, including notifying labor offices. Fixed-term contracts can be terminated without cause, but notice periods still apply. Termination by mutual agreement can bypass standard notice periods and procedures. Employers must adhere strictly to these regulations to avoid legal disputes and financial penalties, while employees should be aware of their rights and proper procedures for contesting unfair dismissals.
Employees Resigning:
Employees who choose to resign must provide written notice to their employer. The required notice period depends on the length of employment with the company:
- 2 weeks if employed for less than 6 months.
- 1 month if employed for at least 6 months but less than 3 years.
- 3 months if employed for 3 years or more.
Employees who resign are not entitled to severance pay, but must fulfil their notice period obligations unless the employer agrees to waive it. Additionally, employees may request to shorten the notice period if mutually agreed upon with the employer.
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Freelancing in Poland
Freelancing in Poland operates within a complex legal framework governed by the Civil Code and the Act on Freedom of Economic Activity. Polish law distinguishes between employees and independent contractors, with freelancers typically falling under the latter category. Contractors enjoy greater autonomy in their work arrangements but lack the protections and benefits afforded to employees, such as paid leave and social security contributions.
Freelancers in Poland are responsible for their own tax obligations and must register their business activity. They are required to issue invoices for their services and maintain proper financial records. Contracts play a crucial role in defining the scope of work, payment terms, and intellectual property rights. It’s important for freelancers to clearly establish their independent status to avoid potential reclassification as employees.
The freelance market in Poland is growing, particularly in sectors like IT, creative industries, and consulting. However, the distinction between freelancers and employees can sometimes be blurred, leading to legal challenges. Recent legislative changes aim to provide more clarity and protection for freelancers, but it remains an evolving area of law. Both freelancers and companies engaging their services should stay informed about current regulations to ensure compliance and mutual protection.
Health and Safety in Poland
Poland has a well-developed occupational health and safety (OHS) framework based on European Union directives and national legislation. The primary law governing workplace safety is the Labour Code, which outlines both employer obligations and employee rights. Employers are required to ensure safe working conditions, provide necessary protective equipment, and conduct regular risk assessments. They must also organize mandatory OHS training for employees and establish workplace health and safety committees in companies with more than 250 workers. Employees have the right to safe working conditions, information about workplace hazards, and the ability to refuse dangerous work without repercussions.
The National Labour Inspectorate (Państwowa Inspekcja Pracy) is responsible for enforcing OHS regulations through workplace inspections and investigations. Employers must report accidents and occupational diseases to this body, which then conducts thorough investigations to prevent future incidents. Poland has also implemented specific regulations for high-risk sectors such as construction and mining. Supplementary guidelines are regularly issued by the Central Institute for Labour Protection – National Research Institute (CIOP-PIB) to address emerging workplace safety concerns. While Poland’s OHS system is generally robust, challenges remain in ensuring full compliance across all sectors, particularly among small and medium-sized enterprises.
Dispute Resolution in Poland
Legal Frameworks with Respect to Labor Laws:
Poland’s labor dispute resolution is governed by the Labor Code and the Act on Trade Unions. These laws outline employee rights, collective bargaining procedures, and mechanisms for resolving workplace conflicts.
Dispute Resolution Processes:
Disputes are typically resolved through negotiation, mediation, or arbitration. Labor courts handle cases that cannot be settled through these methods. Specialized labor inspectors can also intervene in workplace disputes.
Enforcement Mechanisms:
The National Labor Inspectorate enforces labor laws and investigates complaints. Labor courts have the authority to issue binding decisions. Fines and other penalties can be imposed on non-compliant employers.
Challenges:
Poland faces issues with lengthy court proceedings and inconsistent enforcement of labor laws. There’s a need for more efficient alternative dispute resolution mechanisms and better resources for labor inspectors.
Whistleblower Protections:
Poland has limited whistleblower protection laws. The Labor Code provides some safeguards against unfair dismissal, but comprehensive whistleblower legislation is still in development.
International Influence:
EU directives significantly influence Polish labor laws. Poland has ratified numerous International Labour Organization conventions, aligning its practices with international standards.
Compliance Monitoring:
The National Labor Inspectorate conducts regular inspections to ensure compliance with labor laws. Trade unions also play a role in monitoring workplace conditions and reporting violations.
Cultural Considerations in Poland
Poland’s employee culture reflects a blend of traditional values and modern business practices, influenced by its history and recent economic growth. The workplace environment is generally formal, with a strong emphasis on hierarchy and respect for authority.
Communication Styles
Polish communication tends to be direct but polite. Formality is important, especially in initial interactions. Use of titles and surnames is common until a closer relationship is established. English is widely spoken in business settings, but learning basic Polish phrases is appreciated.
Non-Verbal Communication
Poles maintain moderate personal space and limited physical contact in professional settings. Eye contact is important to show sincerity. Punctuality is highly valued and expected in business contexts.
Negotiation Style
Negotiations in Poland are often formal and may proceed slowly. Building trust and personal relationships is crucial. Poles appreciate thorough preparation and may be skeptical of overly aggressive sales tactics. Decision-making typically follows a hierarchical structure.
Employee Culture and Structure
Polish workplaces often have a clear hierarchical structure. Respect for authority and seniority is important. While teamwork is valued, individual responsibility is emphasized. The work culture is generally task-oriented, with a focus on efficiency and meeting deadlines.
Public Holidays and Work Schedules
Poland observes several public holidays, including religious observances. The standard work week is Monday to Friday, typically 40 hours. Vacation time is generous by international standards, with a minimum of 20 days per year for full-time employees.
Polish business culture is evolving, with younger generations often adopting more relaxed and international approaches. However, traditional values like respect, hard work, and loyalty remain important. Understanding these cultural nuances can greatly enhance business relationships in Poland.
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