Poland is an attractive destination for businesses looking to expand, and it’s easy to see why. The country offers a highly skilled talent pool, has access to the EU market, and is strategically located in Central Europe.

However, hiring Polish workers or relocating employees to the country is complex, time-consuming, and expensive. Also, the government enforces strict labor laws and regulations that can easily overwhelm even experienced HR teams. 

How to Hire Employees In Poland

There are three different ways to hire an employee in Poland:

Setting Up a Local Entity

This method is time-consuming and expensive. If you’re only looking to hire a few workers, it’s not worth the shot. 

Working with an Employer of Record (EOR)

Most companies use an Employer of Record in Poland to simplify this process and hire talent in Poland without setting up a legal entity. This is because EORs are well-versed in local and international employment law and help you adhere to the Polish Labor Code.

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Hiring Independent Contractors

This is cost-effective but risky as the Polish Government penalizes employers who misclassify employees. 

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If you want to hire talent or do business in Poland, you’re in the right place! In this article, you’ll discover all the vitals you need to know before hiring a skilled worker in Poland or relocating a team member to the country.

Poland Employer of Record vs Legal Entity in Poland

If you’re looking to hire employees in Poland, you have two main paths: go the traditional route and set up a local company, or take a faster, more flexible approach with a Poland Employer of Record.

Creating a legal entity, like a Polish limited liability company (Sp. z o.o.), means registering with the National Court Register (KRS), applying for a Tax Identification Number (NIP), and getting a Statistical Number (REGON) from the Central Statistical Office. You’ll also need to open a local bank account and deposit a minimum share capital (currently PLN 5,000, or about $1,250). If everything goes smoothly, setup takes about 3 to 6 weeks, but delays aren’t uncommon.

Working with a Poland EOR skips all of that. You can start hiring right away, as you’ll have no need for a local entity, bank account, or in-country tax registration. Your EOR becomes the legal employer on paper, handling payroll, taxes, contracts, and compliance. You focus on managing your team; they handle the red tape.

So, which option makes more sense? That depends on your goals. If you’re testing the waters, expanding quickly, or hiring just a few people, an EOR offers unmatched speed and simplicity. If you’re planning to build a large, long-term presence in Poland, setting up your own entity might be worth the investment.

Start hiring with a Poland EOR

Let us handle the complexities of hiring, compliance, and payroll in Poland while you focus on growing your team.

  • Hire employees in Poland with a Poland EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Poland
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Using an Employer of Record in Poland

An employer of record is a third-party organization that assumes the role of a legal employer of labor for another company. Typically, the company that engages in an EOR is based in another country and wants to hire employees in a different location without establishing a legal entity. 

The key responsibilities of an EOR include: 

  • Handles all employment-related activities: An EOR manages every part of the employment lifecycle, from onboarding to termination. This includes drafting employment contracts, setting up payroll systems, and handling visa and residence permits for international hires.
  • Manages payroll and tax compliance: One of the core functions of an EOR is handling payroll in compliance with Poland’s payroll tax laws. This includes calculating employees’ salaries (gross and net), withholding appropriate taxes, and removing social security contributions.
  • Ensures compliance with local labor laws: Labor laws vary between countries, and Poland is no exception. The Polish government has strict employment regulations, and non-compliance does more harm than good to your company. An EOR in Poland ensures that all your employment practices comply with Polish labor regulations. They also stay updated with employment policy reforms and update your hiring system to match.
  • Administers employee benefits: EORs are responsible for administering employee benefits, whether statutory or performance-based. They also ensure that your benefit packages meet the standards as required by the Polish government and are competitive enough to attract top-quality talent.

How Much Do Employer of Record Services Cost in Poland?

The cost of using a Poland Employer of Record depends on a few key factors, such as the number of employees you’re hiring, the complexity of the roles, and the level of support you need. Most EOR providers charge a monthly fee per employee, which typically ranges from 10% to 15% of the employee’s gross salary.

That fee covers everything from employment contracts and payroll processing to tax filings, statutory benefits, and ongoing compliance with Polish labor laws. Some providers may offer bundled pricing or flat-rate packages depending on your hiring volume or expansion plans.

While using an EOR may seem more expensive than direct employment at first glance, it often saves you time, legal hassle, and the upfront cost of setting up a Polish legal entity. Plus, it gives you the freedom to scale up or down without being locked into a long-term commitment.

Employment and Labor Laws in Poland

Like every other country, Poland has laws guiding employment and labor to protect workers’ rights and ensure fair practices for businesses operating within the country. These laws outline standards for employment contracts, work hours, wages, leave entitlements, employee benefits, etc. 

As a registered business in the country or a foreign company looking to hire Polish workers, it’s imperative that you comply with these laws to avoid legal complications, penalties, or reputational damage. Here are the basics of Polish employment laws you need to know: 

Employment Contract Requirements

Employment contract in Poland is called “Umowa o pracę.” It’s a legally binding document between an employer and employee that outlines the terms and conditions of the employment. This includes essentials such as: 

  • The names of the employer and employee 
  • Type of contract (whether fixed term or trial) 
  • Start and end date 
  • Employee duties/responsibilities 
  • Employee remuneration, including salary, hourly rate, or other types of payment 
  • Work hours, including breaks and overtime arrangements 

There are three main types of employment contracts in Poland: 

Permanent employment contracts 

Permanent (or indefinite) contracts in Poland are long-term contracts that usually don’t have a predefined end date until either party (employee or employer) decides to terminate them. They’re mostly used for full-time roles and offer the highest level of job security. 

Fixed-term employment contracts 

Fixed-term (or definite) contracts are one-off or time-bound agreements with clearly defined start and end dates. They are used for temporary projects, seasonal work, or even consultancy. While fixed-term contracts often come with similar benefits as permanent contracts, they become automatically invalid at the end of the agreed period. 

Also, according to Polish labor law, an employer can only renew a fixed-term contract up to three times for a total period not exceeding 33 months. Once this limit is exceeded, the employee must be offered a permanent contract if the employee decides to continue. 

Contracts for a trial period 

Contracts for the trial period are for employees on probation. They’re usually issued at the beginning of an employment relationship to test employees’ skills and determine whether they’re a good fit for the role. In Poland, this period can last up to three months (extensive to four months) and should be clearly stated in the contract. 

Onboarding Process

Poland has a unique, but mandatory, onboarding process that all employees must go through. Here’s a summary: 

After signing an employment contract, the employee must undergo an initial health assessment (Badania Lekarskie). As an employer, you must refer a professional occupational health doctor to confirm that they can handle the job. 

Next, the employees have to undergo Health and Safety training (called Szkolenie BHP) that teaches them how to use any equipment and navigate the workplace. You’re responsible for providing a medical practitioner for this. Lastly, you must register the employee with the Social Insurance Institution (ZUS) and add them to your payroll system to collect all statutory contributions. 

Usually, the onboarding process takes a few weeks, but we can help you onboard your new employee in days! 

Working Hours

According to the Polish Labor Code, the standard work hours in Poland are 40 hours per week for five days at eight (8) hours per day. This is the most common schedule for full-time employees and aligns with the traditional Monday-Friday work week. 

However, this time can vary across industries, as some sectors, like hospitality, for example, may have different scheduling needs due to weekend operations, seasonal demand, or shift work. Employees who work more than 6 hours are entitled to a paid 15-minute break (except for those with disabilities who are entitled to a 1-minute break). 

Overtime

Overtime in Poland is strictly regulated. Employees are only allowed to work a maximum of: 

Limit TypeMaximum Allowance
Daily Overtime Limit13 hours per day
Weekly Working Hour Limit48 hours per week
Annual Overtime Cap150 hours per calendar year

For each hour of overtime, the Government mandates that you increase the usual pay by:

ConditionOvertime Pay Rate
Night work, Sundays, and public holidays100% of regular pay
Other days of the week50% of regular pay

Leave Entitlements

Leave policies in Poland are based on years of service. The annual leave entitlement for a full-time worker who has worked for less than 10 years is 20 days. People who have worked for 10 years or more are entitled to 26 days. 

Also, any unused leave days are carried over to the following year but expire after September 30th of the new year.  

Aside from this, employees are also entitled to: 

  • Sick leave 
  • Parental leave 
  • Maternity leave 
  • Paternity leave 
  • Force Majeure leave 
  • Childcare leave 

We’ll share more details on this later.

Probation Period

The probation or trial period in Poland is limited to three months. This gives the employer enough time to assess their qualifications and determine whether they’re the best person for the role. During this period, the employee is entitled to the same basic rights (and benefits) as other employees, including social security contributions, insurance, etc. 

At the end of this period, the employer can decide to terminate the probationary employee’s employment or offer the probationary employee a fixed-term or permanent contract based on performance. 

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How an Employer of Record Helps You Hire in Poland

Poland has strict and pro-employee labor laws compared to flexible labor markets like the US or parts of Asia. Employers looking to hire Polish workers must pay attention to the minute details to ensure compliance and avoid legal risks. 

For instance, employment contracts must be in a written agreement, and salary compensations must meet or exceed the minimum wage requirements. A slight mistake, such as misclassifying employees, can incur fines up to  zł30,000 and backpay, back taxes, and back benefits for up to five years, including interest. Most times, this can be overwhelming to keep up with. This is why you need an EOR. 

An Employee of Record service in Poland is an extension of your HR team. They help you to: 

  • Handle all employment-related activities and ensure they comply with Poland’s labor laws. 
  • Draft legally compliant employment contracts.  
  • Manage employee benefits, including paid leave, healthcare, and pensions. 
  • Process payroll and tax withholdings according to local requirements. 
  • Ensure that employees are properly classified to avoid legal requirements. 

With an EOR, you can confidently hire and manage talent in Poland without setting up a local entity. This is helpful if you want to test new markets or scale quickly. 

Beyond local talent sourcing, an EOR can also help you relocate international talent to Poland. They’ll handle all the groundwork – visas, immigration compliance, and residence permits to ensure your employees can get settled and start working immediately. 

Payroll and Employment Taxes in Poland

Fiscal Year

The fiscal year in Poland runs from 1 January to 31 December, which is one calendar year. This is the standard accounting period for all businesses operating in the country. At the end of each fiscal year, every company must prepare and file account statements following dates set by the Polish Tax Office and National Court Register (KRS). 

Payroll Cycle

Like other countries, Poland’s standard payroll cycle is monthly. The government mandates that employees be paid promptly, not exceeding the 10th of the following month. 

Minimum Wage

As of this guide, the minimum wage in Poland is 4,666 zł per month and  30.50 zł per hour. The Polish government places a huge emphasis on protecting workers’ rights, and they have strict regulations to ensure employees receive at least the minimum wage. Failure to meet this minimum wage will attract punishment from the Polish Government. 

Bonus Payments

In most countries, including Poland, the 13th-month bonus payments aren’t mandatory. However, there’s an exception for sectors such as civil servants and teachers, who are paid the 13th-month salary.

Employer Tax Contributions

Employers in Poland must deduct personal income taxes, social security deductions, and employee capital plans (PPK) from the government at the end of each tax year. The PPK is a long-term savings plan that helps employees save for retirement. Employees can opt out of this tax, but employers cannot decide for them. 

Here’s a breakdown of all the taxes: 

Tax TypeRate
Social Security Contributions19.21% – 22.4%
Payroll Tax (Employee)12% for income up to 120,000 zł
32% on income exceeding 120,000 zł
Health Insurance (Employees)9%

Employee Payroll Contributions

Employees in Poland have specific tax responsibilities, most of which the employer handles. Resident workers are taxed based on their worldwide income, while non-resident workers are subject only to income generated within the country.  Here’s a summary of all: 

Tax TypeRate
Social Security Contributions13.71%
Payroll Tax12% for income up to 120,000 zł
32% on income exceeding 120,000 zł
Employees aged 25 and under are exempt for income up to 85,528 zł/year
Health Insurance (Employees)9% (maximum of 314.10 zł per month)
Employee Capital Plan (PPK)2% of gross salary
Solidarity Tax4% on income exceeding 1 million zł (residents only)

Pension System

The Poland pension system is managed by the Social Insurance Institution (Zakład Ubezpieczeń Społecznych —ZUS). It’s a pay-as-you-go system and is added to the social security contributions, 19.52% of your employee’s gross salary. 

Poland also allows employees to contribute 1.50% of their salary to the Employee Capital Plan (PPK), a separate Retirement fund. This contribution is voluntary for employees aged 19 – 54 but compulsory for those aged 55 – 69. Employees aged 70 years and above cannot join this scheme. 

How an EOR Helps You Run Payroll in Poland

The payroll system in Poland is complex, as there are numerous obligations around taxes, social contributions, deadlines, and documentation. It can (easily) get confusing to figure out what to pay, when, and how to stay compliant, especially if you run a foreign company and are unfamiliar with Polish labor and tax laws. 

An EOR helps to demystify this process, ensure that the right taxes are deducted from employees’ salaries, and pay the appropriate authorities at the right time. They also stay abreast of all regulatory changes (the Polish Government reviews its tax obligations from time to time) to ensure that your payroll processes are always compliant with the latest tax laws. 

Also, with an EOR, you can eliminate the administrative burdens of handling payroll in-house, avoid costly errors that lead to penalties, and stay fully compliant. This gives you confidence to focus on other aspects of business growth. 

Work Permits and Visas in Poland

All non-European Union, European Economic Area, and Swiss citizens relocating to Poland to work for your company will need a work visa and permit. This authorizes them to live and work in the country for a specific period. As an employer, you’re responsible for applying for the work permit for your employee, and they’ll need it to obtain a work visa. 

However, if you’re relocating an EU, EEA, or Swiss citizen, they can work in Poland without a visa for the first three months. After this period, they’ll need to register their stay to continue working. 

Poland has different work permits, including temporary and seasonal ones. They’re broken down into “Types,” like this: 

Type A

For employees who have an employment contract with a registered Polish company.

Type B

For employees serving as board members.

Type C

For employees who are transferred to Poland to work in another branch of your company.

Type D

For employees who need to work in Poland for export services for a non-Polish company.

Type E

For employees who have a different reason other than the Types A-D. 

Type S

For employees looking to engage in accommodation or agricultural-related work for a non-Polish company.

As we mentioned earlier, you’re responsible for applying for a work permit on behalf of your employee and submitting relevant documents such as health insurance details, employment contract, etc. Once the license is granted, your employee can apply for a work visa at the consulate or embassy of their home country. 

Before you can bring in foreign talent, you must prove that you’ve advertised the job within the local talent pool and that there are no Polish or EU/EEA candidates suitable for it. 

Time Off and Leave in Poland

Mandatory Leave Entitlements

In Poland, full-time employees are entitled to at least 20 days of paid annual leave per year. Employees who have worked for your company for over 10 years are entitled to 26 days of paid leave. This is separate from the public holidays. 

Public Holidays

Poland has 13 statutory public holidays per year, excluding the annual leave period. They include: 

  • New Year’s Day (1 January)
  • Epiphany (6 January)
  • Easter Sunday (April, date varies)
  • Easter Monday (April, date varies)
  • May Day (1 May)
  • Constitution Day (3 May)
  • Pentecost (8 June)
  • Assumption Day (15 August)
  • All Saints’ Day (1 November)
  • Independence Day (11 November)
  • Christmas Day (25 December)
  • St. Stephen’s Day (26 December)

Sick Leave

Employees in Poland are entitled to 182 days of paid sick leave per year. For the first 33 days of the illness, you’re required to pay 80% of the employee’s salary. After this period, the Social Security System covers the remaining months. 

If the employee has an accident to/from work or becomes ill during pregnancy, you’ll have to pay 100% of the base salary. 

Maternity Leave

Female employees in Poland are entitled to a maternity leave period before/after childbirth, or adoption of a child aged seven years or younger. They can start the leave up to six weeks before their due date and use the rest immediately after childbirth. The leave period allotted to them depends on the number of children: 

Number of ChildrenLeave Allotted
One child20 weeks
Two children31 weeks
Three children33 weeks
Four children35 weeks
Five or more children37 weeks

The Social Security Institute covers 100% of the employee’s salary during this period. 

Note: Breastfeeding employees are entitled to a two-and-a-half-hour break per day. 

Paternity Leave

Employees in Poland can take up to two weeks paid paternity leave when their spouse put to bed. They can split this period into two or take it all at once. Again, the Social Secuiruty covers the payment, which is 100% of their salary. 

Also, if both partners work in your company, the mother can transfer any unpaid leave beyond the first 14 weeks to the father.  

Carer’s Leave

Employees are also entitled to five days of unpaid leave to care for a dependent or child who lives with them. This leave can be extended to three years if they’ve worked for at least six months and their child is under five.

Force Majeure Leave

Force majeure leave is granted to employees who need to attend to urgent family crises, such as when a close relative suddenly becomes ill or injured. This leave is only for two days and is paid at 50%. 

Childcare Leave

Childcare leave is awarded to employees raising at least one child between the ages of 1 and 14. The total leave period is 2 days per year and is fully covered by the employer. Employees who have worked for at least six months are entitled to three years of unpaid leave until the child is five or 18 years old if disabled. 

Using an Employer of Record to Administer Benefits in Poland

Unlike other countries, Poland has a more structured and regulated approach to employee benefits. As an EU member, they follow strict labor and social security standards to protect employees’ rights and promote fair working conditions. 

For example, regardless of the contract, all employees must be entitled to employee benefits. These rules are outlined under the Polish Labor Code, and non-compliance will incur legal issues you may not be prepared to deal with. This is where an EOR steps in. 

An EOR acts as your on-the-ground HR. They administer all employee benefits so that you can focus on your business. They also add extra perks to help you remain competitive and attract quality talent from the market. 

Other advantages of hiring an EOR in Poland are: 

  • They have in-depth knowledge of Polish Labor Laws: An EOR has a comprehensive understanding of Polish labor laws, tax regulations, and social security systems. This helps them design a competitive, fully compliant benefits package that meets Polish Labor laws and attracts top talent from the local workforce. 
  • They handle all employee communications: EORs also ensure your employees understand their rights (and benefits) and how to maximize them. This can motivate them to give their best and stay longer in your company. 
  • They simplify the entire HR cycle: Employee benefit administration, payroll management, tax filings, and reporting are time-consuming and expensive. An EOR takes these burdens off your shoulders by handling the entire HR and compliance process. This reduces overhead costs and minimizes the risks of legal errors. 

Terminations and Severance in Poland

Termination Process

Termination of employment in Poland can be based on:

  • Mutual agreement of both parties: Here, both the employer and employee can decide to terminate the employment. This has to be a written agreement signed by both parties.
  • Termination with a notice period: Employers can also choose to end a work contract in Poland by giving the employees a termination notice. However, this is only legal if the employee is underperforming or has business-related issues.
  • Termination without a notice period: If the employee has:
    • Committed a criminal offence
    • Lost their work license
    • Violated their duties

… then the employer can dismiss them without notice. However, the labor court must evaluate the case before dismissal.

Notice Period

The Polish Labor Code sets the notice period which depends on how long the employee has worked for your company: 

Length of EmploymentNotice Period
Six months or lessTwo weeks
More than six months up to three yearsOne month
More than three yearsThree months

This also applies to employees looking to terminate their employment contract. 

Severance Pay

Employees in Poland are entitled to severance pay depending on their length of service, especially when terminated for economic or business reasons. For example, if you’re downsizing, all affected employees are entitled to severance pay. 

Here’s a breakdown of what you have to pay: 

Length of ServiceSeverance Pay
Two years or lessOne month’s salary
More than two years up to eight yearsTwo months’ salary
More than eight yearsThree months’ salary

Expand into Poland Easily with Remote People’s Employer of Record in Poland

Hiring in Poland doesn’t have to mean jumping through legal hoops or setting up a local company. With Remote People as your trusted Poland Employer of Record, you can hire, onboard, and pay employees quickly and compliantly without the paperwork headaches.

We take care of contracts, payroll, taxes, and local labor laws, so you can focus on building your team and growing your business. Whether you’re testing the market or scaling fast, we’ll help you do it with confidence.

Ready to simplify hiring in Poland? Let’s talk and get your team up and running, faster, safer, and smarter.