Overview

Capital
Warsaw
Currency
Polish Złoty
Date Format
dd/mm/yyyy

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Taxes

Employer
9.76% - Retirement
6.50% - Annuities
11.67% - Accident
Employee
9.76% - Retirement
1.50% - Annuities
2.45% - Sickness
9% - Health
18% - Up to 85,528
32% (only of excess over the amount) - Over 85,528

Minimum Wage

General

Current minimum wage is 2,250 zlotys per month.

In 2020 and 2021 the increase will be 15%, raising minimum wage from 2,250 zlotys to 3,000 zlotys, and 10% each following year until 2024 where it will reach 4,000 zlotys.

Working Hours

General

Full time employment is considered 40 hours weekly, and 8 hours daily.

Overtime

Weekly hours including overtime may not exceed 48 hours, and yearly overtime mat not exceed 150 hours. An employee who works overtime during a regular workweek is entitle to an additional 50%, and an additional 100% for overtime during nights and holidays.

VAT

General

23% standard rate.

Mandatory Benefits

Pension Fund

Polish pension system is based on three pillars. The first pillar is compulsory with equal contributions made by the employer and employee (ZUS). The second pillar is the open pension funds and is not mandatory (OFE). The third pillar is made up of Individual Retirement Accounts, Individual Retirement Security Accounts , Employee Pension Programs, Employee Capital Plans and any other program meant for individual retirement.

Employer contribution – 9.76%

Employee contribution – 9.76%

Social Security

Social insurance contributions in Poland are made towards, pension, disability, sickness (sickness and maternity), accidents at work, and occupational diseases. The total contribution rates are as follows:

  • Employer – 16.26% (±1.67%* for accident insurance which changes every year)
  • Employee – 22.71%
Unemployment Insurance

Employer – 2.45%

Payroll

Payroll Frequency

Salaries are paid on monthly basis. 

Payroll Cycle

Salaries are paid on monthly basis and employees must receive their salary no later the 10th of the following month.

Termination

Termination Process

If contract is for definite time, it dissolves itself and no need for a notice period. Both parties may terminate their contract as long as they provide the necessary notice period.

Advance Notice

For a contract to be terminated a notice period must be given in accordance to the employee’s duration at the company.  A notice period is not required for termination though mutual agreement.

The notice periods are:

  • 3 business days – trial period of less than 2 weeks
  • 1 week – trial period longer than 2 weeks
  • 2 weeks – trial period of 3 months
  • 2 weeks - less than 6 months of employment
  • 1 month –6 months but less than 3 years of employment
  • 3 months - at least 3 years of employment
Severance Pay

Severance payment is given by employers who have at least 20 employees and the dismissal of the employee is through the fault of the employer.

  • 1-month severance pay - less than 2 years of employment.
  • 2 months’ severance pay – between 2 and 8 years of employment
  • 3 months’ severance pay – over 8 years of employment