Poland

Employment

An employment contract can be for an indefinite and fixed term. All the contracts must be in writing, signed and have a trial period of no more than three months.

Payroll

Salaries are paid on monthly basis. Paydays are the 15th of the following month.

HR & Labor

Full working day is considered 8 hours per day and 40 hours per week. Overtime is permitted in special cases when employer needs it. It cannot exceed 150 hours annually. Employee is compensated 200% of the regular wages for working nights, holidays and Sundays and 150% for any other days. Nightshift workers receive 120% of their regular salaries.

Immigration

In order to work legally in Poland, the employer must have a work permit that is applied for by the employee. There are from 5 different types of permits – Type A – for employees who are working for a Polish employer. Type B- for employees who are in Poland from 6 -12 months working in the management board of a person who is establishing a business in Poland.
arrow
Type C – employee who is working for a foreign entity and is transferred to the company’s Polish branch for more than 30 days. Type D – an employee who is working in Poland for non polish entity for temporary amount of time. Type E – an employee who is working for non polish entity and is staying in Poland for longer than 3 months but less than 6 months.

Minimum Wage

Minimum wage is PLN 1,850.

Pension Fund

The employer contributes 9.76% of employee's regular wages.

The employee contributes 9.76% of the regular wages with salary ceiling of PLN 112,380.

Severance Payments

Employer may be responsible to pay severance pay in case if he/she terminates the employee’s contract by agreement of between the two parties or with a notice. The employee was terminated for reasons he/she wasn’t responsible and if the employer has 20 employees.

If the employee has worked for the company less than two years, he/she is entitled to one month’s pay, if between two to eight years, two month’s pay and three month’s pay for over eight years spent in the company.

Advance Notice

Both the employee or the employer must notify the other party when terminating the employment contract. If contract is for definite time, it dissolves itself and no need for a notice period. If the contract is terminated during trial period, three working days notice if the contract was concluded in less than two weeks, one week notice if it has been two weeks but less than three months and two weeks notice if it has been three months. If the employee has been working in the company for more than two weeks after the trial period but less than six months, they are entitled to two weeks’ notice. If they have been working for six months but less than three years, they are entitled to one-month notice. If the employee has been in the company for three years or more, they are entitled to three months’ notice.

Termination Procedure

If the employee is terminated on mutual agreement, they receive the regular wages during the time of the notice period. If they are terminated because of the employer’s initiative, they are entitled to severance pay. Lastly a contract can be terminated due to employee’s fault, at which time there is no notice period or severance pay.

Sick Days

Employees are entitled to remuneration of 80% their salary for the first 33 days of sick leave. From the 34th day, sick payment is made by social security. Once responsibility is transferred to social security, the original doctor statement must be delivered to the social security office along with a relevant request signed by the employer.

Vacation Days

The employee is entitled to 20 days of vacation.

Public Holidays

There are 13 public holidays.

Expat Benefits

Expats in Poland receive the following benefits – salary payment either in their local currency or host country currency. The cost of living allowance which is to cover the differences in prices for services and common goods between the host and home countries. There is also hardship allowance and mobility premium bonus available for the expats. Lastly there are housing and education benefits, depending on the size of the family and the position of the employee in the company.

Additional Employee Withholdings

1) Disability
2) Accident
3) Sickness
4) Labor Fund
5) Employee Benefit Fund

1) Employer contributes 6.5%
2) Employer contributes 0.4-3.6% depending on the occupation
3) Employer contributes -0%
4) Employer contributes -2.45%
5) Employer contributes- 0.1%

1) Employee contributes 1.5%
2) Employee contributes - 0%
3) Employee contributes -2.45%
4) Employee contributes - 0%
5) Employee contributes- 0%

VAT

VAT is 23% standard rate.