The largest economy in Central and Eastern Europe, Poland is home to many multinational corporations that attract talent from both home and abroad. But despite recent government efforts to ease the country’s heavy bureaucracy and improve its local business environment, navigating Polish HR and payroll requirements can still prove challenging, especially for companies that lack the necessary in-house expertise.
Here is an overview of the country’s regulations:
Social security
Employers in Poland make monthly contributions to the Social Security Institution (ZUS). Organisations with 25 or more employees must also pay a premium to the State Fund for the Disabled (PFRON).
Registration and de-registration forms must be submitted electronically to the social security authority within seven days of the start, or end, of an employment contract.
Social insurance |
Paid by employer (% ofgross income) |
Paid by employee (% ofgross income) |
|
Retirement |
9.76% |
9.76% |
|
Disability |
6.50% |
1.50% |
|
Accident |
0.40% - 3.60% |
- |
|
Sickness |
- |
2.45% |
|
Labour Fund |
2.45% |
- |
|
Health |
- |
9% |
|
Guaranteed Employee Benefit Fund |
0.10% |
- |
|
Total |
19.21% - 22.41% |
13.71% |
Visas and work permits
Under Poland’s Employment Promotion and Labour Market Institutions Act, employers may hire foreign workers from European Union (EU) or non-EU countries after receiving a Voivode’s (local regulator) employment permit.
There are two categories of foreign worker, each of which is subject to different rules:
• Citizens from EU countries or the European Economic Area (EEA) are entitled to work in Poland without a work permit. Employers are not obliged to try to find local Polish employees prior to employing them;
• Non-EU or EEA citizens require a work permit as well as an appropriate visa. Work permits are issued by the Department of Civil Affairs and Immigration and are valid for a maximum period of three years.
There are five types of work permit:
Type A: Issued to employees who perform work in Poland under an employment contract;
Type B: Issued to foreigners who work on the board of an entity in Poland and will remain in the country for more than six months within a 12-month consecutive period;
Type C: Issued to employees who work for a branch office or plant of a foreign company in Poland for more than 30 days in a given calendar year;
Type D: For employees sent to Poland to undertake temporary or ad-hoc work for a foreign company that does not have a branch office, plant or business activities in the country;
Type E: Issued to foreign employees who are sent to Poland to work for a foreign employer for longer than three months over a six-month period.
Payroll and overtime
The minimum gross wage for full-time work is PLN 2000 (US$560) per month (as of 1 January 2017). Employees working overtime are entitled to additional pay of 100% of their salary for working at night (9:00pm to 7:00am), Sundays, bank holidays and for any hours that are above the weekly average, which is paid at a 50% premium on any other day.
Entitlements
Employees who have worked for less than 10 years are entitled to 20 days of paid vacation. Staff members who have worked for 10 years or more are entitled to 26 days of paid vacation.
Employers are allowed to negotiate using collective bargaining agreements. Employees who have their employment terminated for reasons unrelated to that employment are entitled to severance pay. The amount concerned ranges from one month’s to three month’s pay depending on how long they have worked for their employer. This situation applies to all companies with at least 20 employees.
If personnel work under fixed or indefinite term contracts, the termination notice period ranges from two weeks to three months, depending on how long they have worked for their employer.
HR legislation
The Polish Labour Code is the key law regulating relations between employers and employees. Other major Acts include:
• The Trade Union Act (May 1991);
• The Act on Informing and Consulting Employees (May 2009);
• The European Works Council Act (April 2002);
• Act on the Minimum Wage for Work (October 2002).
Patrycja Strzelecka, managing director of TMF Poland, has many years of experience working in outsourced business services. She set up one of the biggest accounting companies in Poland, Extor S.A., which was acquired by TMF Group in 2016 along with UCMS Group.
The largest economy in Central and Eastern Europe, Poland is home to many multinational corporations that attract talent from both home and abroad. But despite recent government efforts to ease the country’s heavy bureaucracy and improve its local business environment, navigating Polish HR and payroll requirements can still prove challenging, especially for companies that lack the necessary in-house expertise.
Here is an overview of the country’s regulations:
Social security
Employers in Poland make monthly contributions to the Social Security Institution (ZUS). Organisations with 25 or more employees must also pay a premium to the State Fund for the Disabled (PFRON).
Registration and de-registration forms must be submitted electronically to the social security authority within seven days of the start, or end, of an employment contract.
Social insurance |
Paid by employer (% ofgross income) |
Paid by employee (% ofgross income) |
|
Retirement |
9.76% |
9.76% |
|
Disability |
6.50% |
1.50% |
|
Accident |
0.40% - 3.60% |
- |
|
Sickness |
- |
2.45% |
|
Labour Fund |
2.45% |
- |
|
Health |
- |
9% |
|
Guaranteed Employee Benefit Fund |
0.10% |
- |
|
Total |
19.21% - 22.41% |
13.71% |
Visas and work permits
Under Poland’s Employment Promotion and Labour Market Institutions Act, employers may hire foreign workers from European Union (EU) or non-EU countries after receiving a Voivode’s (local regulator) employment permit.
There are two categories of foreign worker, each of which is subject to different rules:
• Citizens from EU countries or the European Economic Area (EEA) are entitled to work in Poland without a work permit. Employers are not obliged to try to find local Polish employees prior to employing them;
• Non-EU or EEA citizens require a work permit as well as an appropriate visa. Work permits are issued by the Department of Civil Affairs and Immigration and are valid for a maximum period of three years.
There are five types of work permit:
Type A: Issued to employees who perform work in Poland under an employment contract;
Type B: Issued to foreigners who work on the board of an entity in Poland and will remain in the country for more than six months within a 12-month consecutive period;
Type C: Issued to employees who work for a branch office or plant of a foreign company in Poland for more than 30 days in a given calendar year;
Type D: For employees sent to Poland to undertake temporary or ad-hoc work for a foreign company that does not have a branch office, plant or business activities in the country;
Type E: Issued to foreign employees who are sent to Poland to work for a foreign employer for longer than three months over a six-month period.
Payroll and overtime
The minimum gross wage for full-time work is PLN 2000 (US$560) per month (as of 1 January 2017). Employees working overtime are entitled to additional pay of 100% of their salary for working at night (9:00pm to 7:00am), Sundays, bank holidays and for any hours that are above the weekly average, which is paid at a 50% premium on any other day.
Entitlements
Employees who have worked for less than 10 years are entitled to 20 days of paid vacation. Staff members who have worked for 10 years or more are entitled to 26 days of paid vacation.
Employers are allowed to negotiate using collective bargaining agreements. Employees who have their employment terminated for reasons unrelated to that employment are entitled to severance pay. The amount concerned ranges from one month’s to three month’s pay depending on how long they have worked for their employer. This situation applies to all companies with at least 20 employees.
If personnel work under fixed or indefinite term contracts, the termination notice period ranges from two weeks to three months, depending on how long they have worked for their employer.
HR legislation
The Polish Labour Code is the key law regulating relations between employers and employees. Other major Acts include:
• The Trade Union Act (May 1991);
• The Act on Informing and Consulting Employees (May 2009);
• The European Works Council Act (April 2002);
• Act on the Minimum Wage for Work (October 2002).
Patrycja Strzelecka, managing director of TMF Poland, has many years of experience working in outsourced business services. She set up one of the biggest accounting companies in Poland, Extor S.A., which was acquired by TMF Group in 2016 along with UCMS Group.
