Currency
Polish Zloty (PLN)
EOR IN Poland
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A guide to employing and growing your team in Poland
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Poland is one of the largest economies in Central Europe, with a well-diversified economy that includes strong sectors such as automotive, manufacturing, information technology, and agriculture. With a population of around 38 million, Poland has become an attractive destination for foreign investment due to its competitive labor costs and strategic location in the heart of Europe. The Polish labor market is regulated by a set of robust labor laws that protect workers’ rights, including paid leave, health insurance, pension plans, and unemployment benefits. The country has a strong social security system and offers a high standard of living, though wage levels remain lower compared to Western Europe.
Employer Contributions
Social Security Contributions: ~19.52%
Accident Insurance: ~0.67%-3.33%
Labor Fund: ~2.45%
FG?P (Employee Guarantee Fund): ~0.10%
Total Employer Contribution: ~22.74%-26.40%
Employee Payroll Taxes
Social Security Contributions: ~13.71% (employee portion)
Pension Insurance: 9.76%
Disability Insurance: 1.50%
Sickness Insurance: 2.45%
Health Insurance: 9.00% (partially deductible from income tax)
Total Employee Contribution: ~13.71% + applicable income tax
Employee Income Tax Rates
Poland uses a progressive income tax system based on annual taxable income:
Up to PLN 30,000: 0% (Tax-free allowance)
PLN 30,000 – PLN 120,000: 12%
Above PLN 120,000: 32%
Statutory Leave
In Poland, employees are entitled to 20 working days (4 weeks) of paid annual leave per year if they have up to 10 years of service. For those with more than 10 years of service, the entitlement increases to 26 days. There are 13 public holidays annually. Employees are entitled to up to 33 days of paid sick leave per year at 80% of their salary. If employed for more than 10 years, employees are entitled to 14 days of paid sick leave at 100% of their salary.
Pregnancy and Maternity Leave
In Poland, female employees are entitled to 20 weeks of maternity leave, which includes 6 weeks before the expected birth date and 14 weeks after birth. During this time, the first 14 weeks are paid at 100% of the employee’s salary, while the remaining weeks are paid at a reduced rate based on social security contributions.
Paternity Leave
In Poland, fathers are entitled to 2 weeks of paid paternity leave, which must be taken within the first 24 months after the birth of the child. The leave is paid at 100% of the employee’s salary.
Work-Related Injury Leave
In addition to statutory annual, maternity, and paternity leave, Polish labour law provides for parental leave which may extend as part of the overall maternity/parental leave system. Additional unpaid family care leave and other personal leave rights may be available based on specific employer policies or collective agreements.
Termination Process
Employment termination in Poland must comply with the Labour Code. Employers must provide valid grounds for termination when ending an indefinite-term contract and adhere to notice-period requirements. Severance pay may be required under certain conditions, especially in the case of collective redundancies or long service, with statutory guidelines outlining compensation based on tenure.
Notice Period
The statutory notice period in Poland depends on length of service: employees with less than six months of employment generally have a two-week notice period; those with six months to three years have one month’s notice; and employees with more than three years’ service have three months’ notice. Employers must also provide notice during probationary periods as specified under the contract (ranging from three days to two weeks depending on probation length).
Probation Period
Probation periods in Poland are not mandatory but are widely used, with a maximum duration of three months under Polish law. During probation, termination can occur with shorter notice periods based on the agreed probation length.