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Mercans CountryIntel ® Poland Payroll And HR Insights

Mercans offers complete payroll, PEO and HR services in Poland

Ranked highest in the CEE region and third in Europe in terms of greenfield investment value, Poland is the third preferred location in Europe for foreign investment. The Polish Investment Zone Act, which was created 20 years ago, established Special Economic Zones. New regulations have made certain enterprises eligible for public aid in the form of tax exemptions.

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Doing Business in Poland

Classified as a high-income economy by the World Bank and with GDP per capita of over US$12,400, Poland is the largest economy in Central Europe and the sixth largest in the European Union. Business activities may be conducted in Poland by foreigners, that is, a one person business or commercial company may be set up. Cross-border services may also be provided without the need to register the business in Poland.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Poland is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.

Banking

Banking Hours: 8:00 am to 4:00 pm from Monday to Friday

Working Week

The standard working week is from Monday to Friday from 8:00 am - 4:00 pm

Labor Law

Companies which operate a multi-country payroll should take note that the parties to an employment relationship are allowed to choose which law governs their relationship, that is, that Polish labor law only applies if they choose so. That said, even if the employment relationship is governed by foreign law, the terms of the employment agreement cannot be less favorable than those provided under Polish law.

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Main Industries

Agriculture, manufacturing and mining

GDP Growth

5.30%

Dates & Numbers

yyyy/mm/dd

Official State Name

Rzeczpospolita Polska

Population

37.95 million

Capital

Warsaw

Major Languages

Polish

Currency

Polish złoty zł

Internet Domain

.pl

International Dialing Code

+48

Poland
Warsaw, PL
6:21 am, July 7, 2022
15°C
clear sky

Payroll

The minimum wage is set annually at a national level and this applies to all full-time employees. Where an employee is working part-time, the minimum wage is calculated proportionately to the employee’s working time.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 10 years

Reports

Employees who have worked for fewer than 10 years receive 20 days paid annual leave

Annual Leave

Sick leave is paid at 80% of the allowance and employees who are below 50, receive 33 days of paid sick leave

Sick Leave

20 weeks of paid maternity leave and two weeks of paid paternity leave

Maternity & Paternity Leave

One month notice if the employee is employed for between 6 months and three years

Employee Termination

No provision

13th month salary

2,800 PLN per month

Minimum Wage

This payment is 200% of the regular salary rate of pay once an employee has worked the maximum of 45 hours in one week

Overtime

One month severance pay is provided for the employee who has worked for less than two years.

Severance Pay

Tax and Social Security

The rules on taxation on individual income apply to Polish nationals as well as foreign nationals. Social security consists of pension insurance, disability insurance, accident insurance, labor fund and sickness insurance.

Tax

Foreign nationals living in Poland pay tax on their worldwide income unless a double tax treaty applies. Foreign nationals not living in Poland are subject to limited tax, that is, taxed on income received from performing duties in Poland/ from Polish sources. Employers must deduct tax from the employee’s taxable salary and pay it to the tax office.

19%

Corporate Income Tax

32%

Personal Income Tax

23%

Sales Tax

23%

VAT

Social Security

Both the employer and employee are obligated to contribute to the social security system, with the employer obligated to withhold the employee’s share. Additionally, Poland has a system of family benefits, social assistance benefits and unemployment benefits.

35.8%

Social Security Rate

22.1%

Social Security Rate for Employers

13.7%

Social Security Rate for Employees

Employment Law

Generally, if employment is to commence with a probationary period, there must be a specific probationary period with a maximum duration of three months. An employer cannot employ the same employee for more than three successive fixed term contracts (of over 33 months) except with certain defined conditions. Employees have the right to form and join trade unions. Strikes are permitted only where a statutory dispute resolution process has been exhausted.

Employment Agreement

These agreements shall be concluded in writing and must specify the important terms including parties to the contract, commencement date, type of employment contract, type and place of work, remuneration and working hours. While there are no specific terms implied by law governing employment, the Labor Code and other provisions of Polish labor law are deemed to apply.

Working condition

Generally, the number of working hours cannot exceed eight hours per day and an average of 40 hours per week. In certain situations, daily working hours can be extended and balanced by shorter hours on other days or by time off. Employees are generally entitled to a paid rest break of at least 15 minutes.

Leaves

The statutory minimum holiday is either 20 or 26 days depending on the employee’s employment record. The former is allocated for employees who have completed less than 10 years and the latter, for those who have completed over 10 years of service. There are also statutory rights for parents including maternity, and paternity leave, adoption and parental rights.

Employment termination

If an employment contract is concluded for a non-fixed term and terminated with notice, the termination takes effect on the lapse of the applicable notice period. This length varies depending on how long the person has worked for the employer. In certain cases where redundancy is involved, a severance payment must be made.

1 month

Minimum notice period for terminating an employee

13

Total number of public holidays

40

Working hours per week

4 weeks

Total number of days for Compassionate & Bereavement Leave

Immigration

A visa is required for nationals of all countries except citizens of Schengen zone countries and citizens of Andorra, Argentina, Australia, Brazil, Brunei, Bulgaria, Chile, Croatia, Cyprus, Guatemala, Honduras, Hong Kong, Iceland, Ireland, Israel, Japan, Canada, Costa Rica, Liechtenstein, Macau, Malaysia, Malta, Mexico, Monaco, Nicaragua, New Zealand, Panama, Paraguay, Rumania, Salvador, San Marino, Singapore, South Korea, Uruguay, USA, Vatican, Venezuela, United Kingdom and Northern Ireland.

Residency permits

To work in Poland, foreign nationals generally require a work permit. Certain categories of foreign nationals are exempt from the obligations including citizens of the EU, foreign nationals with a settlement permit and foreign nationals who have long-term EU resident status in Poland.

Work Permit validity

Three years

Required Documents

Completed application form

Evidence of payment of the application fees

Confirmation of the legal status of the employer from the National Court Register

Current records of the employer’s economic activity

Copies of the applicant’s passport pages with relevant travel information

Evidence of the applicant’s health insurance

Company deed

Copy of a statement regarding the profits or losses sustained by the employer

Copy of a contract in accordance with the service being provided in Poland.

Compliant, reliable, error-free and touchless payroll in Poland

Build the best team and hire top talent compliantly in Poland. Get in touch with Poland payroll outsourcing & PEO specialists for a free consultation!

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This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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