Poland is one of Europe’s most popular regions in terms of investment attractiveness. It ranks 40th out of 190 countries in the Doing Business Ranking.

The skilled labor force, its central location, and the number of incentives for foreign investors are just a few of the benefits here. Its Podlaskie region in Eastern Poland stands out as the regional leader in innovation, aiming to establish itself as the central hub for investment and startup businesses.

In 2023, Poland’s cumulative FDI stock reached an all-time high of €259.3 billion, indicating the country’s ability to sustain foreign investments over the years. So, it’s safe to say Poland is a prime destination for new and established enterprises looking to establish a footprint in the European market.

However, entering a new market comes with its set of hurdles. It’s especially challenging for those businesses who don’t know much about the labor laws, local regulations, and other administrative requirements of Poland. This is why we need PEOs. 

Let’s learn about what they are, why we need them, and how they can help establish your presence in Poland.

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What Is a Poland PEO?

A Poland PEO or Professional Employer Organization is a third-party organization that deals with onboarding new staff. PEO has many functions, all under the umbrella of HR. 

The key functions include the management of payroll and taxes, compliance, employee benefits, and ensuring the onboarding process remains compliant with local labor laws in Poland.

In Poland, PEO becomes the legal employer for the employees. So, while they take care of the new hires, you, as the employer, acquire control over the day-to-day business activities, planning and making strategies, and other responsibilities.

It’s like the PEO and the company entering into a co-employment relationship to manage the workforce. 

Start hiring with a Poland PEO

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

👉 Get Your Customized Poland PEO Proposal Today!

Difference Between PEO, International PEO, and EOR

Although the terms are used interchangeably for global expansion and hiring, PEO, International PEO, and EOR are distinct terms that represent different service models.

Poland Employer of Record

An EOR is an international, global company that provides HR solutions to businesses. It’s quite like a regular company, but in this case, the PEOs are the full legal employers of the international employees. 

So, they handle all the legal responsibilities, including compliance with labor laws, tax regulations, and other employee work and benefits.

Learn more about EOR in Poland

Poland Professional Employer Organization (PEO) 

The PEO operates under the co-employment model, which is the most common type for companies expanding globally. The PEO partners with a company to hire and manage employee-related matters.

Learn more about PEO in Poland

International PEO

An international PEO provides services similar to that of a PEO but operates in multiple countries. It assists companies looking to expand their operations in foreign countries without the need to establish a local legal entity. 

The international PEO handles payroll, employee benefits, compliance with labor laws, and other HR functions for businesses expanding to Poland and other countries.

But in all these scenarios, when you partner with a PEO to hire employees in a new country, you don’t have to set up your business or a dedicated HR department for it. The PEO will partner with you to ensure your employment practice complies with the regulations of the country.

Who Can Use a PEO in Poland?

PEOs can benefit all types and sizes of businesses but are particularly helpful for small and medium-sized businesses, which are key drivers of growth in Poland. The country currently records about 2.21 million SMEs.

By accessing streamlined HR services, these businesses can gain a competitive edge in the market and navigate complex local compliance matters with ease.

In Poland, labor laws are based on the Labor Code of 1974 and the Non-working Days Across 1951. These regulations highlight the employment standards, working hours, benefits, and employee rights, which are not easy for new businesses to keep tabs on. That’s why we need the best PEO services.

PEOs have the expertise, experience, and knowledge to handle all these regulations. They can manage payroll, benefits, and employee matters with ease in Poland, ensuring compliance at every step.

Here are some of the employment standards in Poland that each business has to adhere to:

  • The minimum wage is PLN 4,300/ month
  • Polish workers have to pay about 12% of taxes when earning up to PLN 120,000 annually. Above that, they have to pay 32%.
  • Entrepreneurs have to pay contributions to the Social Insurance Institution (ZUS).
  • Social security includes accident insurance, employee guaranteed benefits fund, solidarity fund, and contributions to the labor fund.

So, startups and small or well-established businesses together can save time, reduce costs, and minimize legal risks by partnering with the PEOs. Given their expertise in the field, PEOs can ensure compliance with all these complex labor laws.

This way, businesses can focus on broad business objectives and delegate project-specific roles to the PEOs, such as handling short-term employment contracts or compliance requirements. 

Moreover, if a company does not have in-house HR capabilities, a PEO can ensure that all employment-related tasks are handled professionally and within the legal framework. So, whether it’s about hiring or managing an entire team, PEOs can help you achieve your goals in Poland without any problems.

How Does a PEO Work in Poland?

Here’s how partnering with a PEO in Poland can help you:

  •  Initial Consultation: The onboarding process begins with a consultation, during which the PEO assesses your business needs. They then discuss your business goals, the roles you plan to fill, and other requirements related to Polish labor laws or industry-wide standards. This helps the PEO understand and match your business objectives with their services.
  • Drafting the Employment Contract: They then recruit the employees and conduct the initial interviews and other formalities for the hiring process. The next step is drafting and signing the employment contract. The contract must comply with Polish labor laws and include all provisions, including leave allowances and social security contributions. At this stage, the PEO becomes the legal employer responsible for all compliance-related matters and employee administration.
  • Payroll Management: PEOs handle all payroll matters, including calculating salaries and withholding taxes, and ensure timely employee payments.
  • Benefits Administration: The PEO also administers benefits like health insurance, retirement plans, and vacation allowances, so employees receive a market-competitive package that meets the legal standards and aligns with their expectations.
  • Compliance: Since laws and legal requirements change constantly, it is important to stay updated, especially for foreign companies. When you work with a PEO, they continuously monitor legislation changes so your business remains compliant.

    For example, if you need to adjust the working hours, employment contract, or minimum wages at any time, they will update you about it and also do it for you.

  • Employee Support: The PEO also offers employee support services, such as training programs, dispute resolution, and performance management. Employees with any issues related to their employer or employment will act as the liaison or mediator to create a conducive and smooth working environment.
  • Offboarding: If a contract needs to be terminated, that too will be handled by the PEO. They will handle the entire process of offboarding the employee according to Polish labor laws. They will set the notice period, calculate the severance pay, and ensure the documentation is completed before the employee is offboarded.
  • Reporting and Analytics: PEOs provide detailed reports on payroll, employee performance, and compliance. These help you make informed decisions about your workforce and operations in Poland.

Benefits of Using a PEO in Poland

Expanding into Poland offers several exciting new opportunities for businesses. The country has seen significant economic growth over the past few years. From 1990 to 2023, the GDP per capita has remarkably increased from $6,200 to $48,000. 

Poland’s average hourly labor cost is considerably lower than the EU average, too. In 2023, the EU’s average stood at €31.8, whereas Poland’s was just €14.5. 

So, its growing economy, skilled workforce (available at competitive wages), and strategic location in the heart of Europe give you key access to the European markets. 

However, compliance with local regulations remains a major challenge. That’s where a PEO comes in. Let’s examine the key benefits of using a PEO when moving or expanding to Poland.

Smooth Market Entrenchment

Setting up a business or organization in a new country can be costly and time-consuming, requiring a lot of effort and market research. 

The effort can span up to several months to a year. Having a PEO to manage the hiring part at least takes up much of the headache of dealing with the local employees or market. This helps you save time and valuable resources to allocate to other important business functions instead.

Compliance

Poland has detailed and strict labor laws covering everything from working hours to employee onboarding. For instance, the standard working hours in Poland are 40 hours a week (8 hours a day, 5 days a week). The weekly working time, including overtime, should not exceed 48 hours.

The PEO is usually the first to know about any changes in the legislation, and it helps keep your operations in line with them.

Hence, your business stays safe from penalties or legal issues.

Cost Savings

Setting up a business also involves huge costs, including administrative expenses, the cost of setting up the office, and other fees. 

The PEOs give you a cost-effective alternative so you can manage the workforce without investing a lot in the processes. Since they are already in the business and market, they can help you get the best rates and keep you safe from scams and misleading or overly expensive brokers.

Payroll Management

Payroll involves exact calculations of salaries, security contributions, taxes, and employee benefits. The PEO handles payroll processing, ensuring an accurate and timely disbursement. It also handles tax filing and contributions to the Polish Social Security System, ensuring no errors or problems.

Scalability

At any point, if the business grows, the PEO can support this expansion into other markets and regions. Many of these companies already operate across multiple countries, so you get a seamless expansion solution for your business.

Companies that hire foreign workers can also assist them in obtaining work permits, residency, and health insurance according to the country’s immigration laws. 

How to Choose a PEO in Poland?

Fortunately, we have many quality and well-reputed concerns providing PEO services in Poland. Here’s a little guide to selecting the right PEO in Poland.

  • Know Your Business: The first thing you need to know is the size of your business — whether it’s small, medium, or large — and the number of employees you plan to hire in Poland. This will help you find the right services specializing in your business size. 
  • Industry type: Some PEOs specialize in specific industries. Make sure you choose the right people with experience in your sector who understand the industry’s regulatory requirements and other norms.
  • Services Required: Then, consider the services you’ll need, such as payroll, benefits, taxes, HR support, etc. If the service provider offers all these devices, proceed with them only.
  • PEO’s Legal Expertise: Many PEOs in Poland claim to be the best. However, ensure that whoever you choose knows Polish labor laws, such as tax regulations, work permits, and employment contracts. They should also be able to handle social security contributions, health insurance, pension schemes, etc. 
  • Reputation: Choose a PEO with a solid track record in Poland and at least a few years of experience. Ask for reviews and references to assess the PEO’s service and reliability. At the very least, they should be reputable for payroll and HR services. 
  • Technology: Also look into the HR management platform the PEO uses. It should be user-friendly and easy to integrate with your existing system.

But if you still can’t get around the right platform for your needs, consult a PEO broker service like Remote People.

With us, you can avail yourself of up to 40% lower costs than going directly to the PEOs. Contact us today to request a proposal.

Pricing Models for PEO in Poland

Understanding the pricing structure is critical when looking for a PEO in Poland. The structure should match your budget and operational requirements. PEOs in Poland generally have a range of pricing models.

Flat Fee Model

In this model, you must pay a fixed fee for each employee under the PEO. It’s a simple structure with predetermined pricing and is ideal for small companies with limited workforce and employees.

Percentage of Payroll

The PEO charges a percentage of payroll cost in this model. The good part is that it includes complete services, such as compliance, payroll management, and benefits administration.

 

This model works best for companies with variable payroll costs or those that need a range of services.

Tiered Pricing Model

In this type, the price is based on the size of the workforce. The rates decrease as the number of employees increases. This type best suits big companies that manage large teams and numbers.

 

So, if you plan to expand your workforce in the near future, this is the right model.

Custom Pricing

The PEO may also offer a customized price tailored to your specific requirements.

 

This model is best for unique or specialized businesses that need specific services, belong to a particular industry, or have a certain number of employees.

Streamline Compliance with PEOs and Build Your Dream Team in Poland!

Expanding a business to a new country can be daunting. Poland, for one, offers exciting expansion opportunities, which is why the labor laws and regulations change constantly. It’s extremely important to stay ahead of these changes and thoroughly understand them, including all the rules governing taxes and benefits. 

So, having the right people by your side can take much trouble off your shoulders. From employee onboarding to ensuring they get all the benefits to offboarding, the PEO services can best look after your employees. 

With PEOs in Poland, you don’t have to worry about managing the payroll, making timely payments, or even deducting the correct amount of taxes while remaining legally compliant.

Frequently Asked Questions

The PEO can facilitate finding, hiring, and managing employees in Poland. They manage payroll, taxes, and employee benefits so you can onboard your clients while complying with the law. The PEO handles all administrative HR work and simplifies the process for new entrants or those expanding globally.

The cost of using a PEO includes a service fee based on the number of employees you need. That's the upfront cost plus the payment for any specific services the PEO may charge.

Some PEOs charge a flat fee; others may offer customized pricing according to your business needs.

Yes, the PEO can help you hire remote and full-time employees in Poland by handling all legal and administrative matters. They look into remote and on-site workers and ensure you stay compliant with the laws while providing employee benefits, training, onboarding, and offboarding.