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Payroll and Benefits Guide Poland

Last updated: May 16, 2023

Currency
Polish Złoty (PLN)
Employer Taxes
19.48% - 22.14%
Payroll Frequency
Monthly
Employee Costs
22.71%
Capital
Warsaw
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
9.76%
Retirement Pension (applied on salary up to  208,050.00 PLN)
6.50%
Disability Fund (applied on salary up to  208,050.00 PLN)
0.67% – 3.33%
Accident Fund
2.45%
Labor Fund
0.10%
Guaranteed Employee Benefits Fund
19.48% – 22.14%
Total Employment Cost
Employee Employee Payroll Contributions
9.76%
Retirement Pension (applied on salary up to  208,050.00 PLN)
1.50%
Disability Fund (applied on salary up to  208,050.00 PLN)
2.45%
Sickness Fund
9.00%
Health Insurance
22.71%
Total Employee Cost
Employee Income Tax
0% 0-30,000 PLN annually
12.00%
30,001 -120,000 PLN annually
32.00% Over 120,000 PLN annually

 

Remote Work

The amendment to Article 67[33] -1 of the Labour Code, remote work and hybrid work as of 7 April 2023 ruling of performing remote work, including:

The employer is obligated to roll out an agreement with a company trade union organization through regulations for performing work remotely. There are several options for how to create a plan with workers:

  • The possibility of controlling the conditions in which remote work is performed
  • The employer’s obligation to provide appropriate equipment and training, including occupational health and safety information and security and protection.
  • Issuing a cash equivalent to cover upfront costs of organizing the workplace; i.e. work from home allowance
  • The possibility of reimbursing the costs of organizing the workplace if covered by the employee
  • Possibility for the employees to request occasional remote work – for a period no longer than 24 days in the calendar year

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

Effective July 2023, the minimum wage will be raised to PLN 3,600, marking the second increase this year after it was raised to PLN 3,490 in January. This change will also impact the maximum amount of severance pay, which is set at 15 times the minimum wage.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

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

13th Salary

There is no legal requirement for 13th-month payments.

Authority Payments

Authority Payment

Paid To

Due Date

Method

Urząd Skarbowy (Tax Office)

PIT-4

20th day of each month

Wire transfer

Social Insurance Institution

ZUS

15th day of each month

Wire transfer

National Disabled Persons Rehabilitation Fund

PFRON

20th day of each month

Wire transfer

Working Hours

General

The standard working week in Poland can be no longer than 40 hours per week, eight hours per day.

Overtime

If work time limits are passed, overtime compensation is compulsory. The maximum number of overtime hours is 48 hours per working week. Annual overtime cannot exceed 150 hours.
Overtime is due after working the maximum hours of 45 hours per week and is paid at the statutory rate of 200.00% of the employee’s regular pay if the overtime is at night, on Sundays, or on non-working days. Overtime is paid at 150.00% of the employee’s regular income if overtime is performed during any other time. Overtime can also be given as time off in lieu.

Leave

Annual Leave (vacation)

The length of paid annual leave in Poland depends on the employee’s seniority. The employee will acquire the right to 20 or 26 days of paid annual leave depending on their working experience:

  • Employees who have worked fewer than 10 years are entitled to 20 days of annual leave
  • Employees who have worked 10 years or more are entitled to 26 days of annual leave

In addition, the calculation of an employee’s seniority includes not only years of employment but also secondary and higher education.
Unused annual leave days can be transferred to the following year, but must be taken by September 30th of the following year.

Workers with children under the age of 14 are entitled to two additional days of leave at the rate of 80%. These days can only be taken by one parent within the same year and if unused these days do not carry over into the next year.

Some occupations, such as teachers or those working in the academic industry may be entitled to a longer length of paid leave, which can extend to 36 days a year.

Public Holidays

When a public holiday falls on a Saturday, another day off must be given to the worker in lieu.

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
6 Jan 2024 Saturday Epiphany
1 Apr 2024 Monday Easter Monday
1 May 2024 Wednesday Labour Day
3 May 2024 Friday Constitution Day
30 May 2024 Thursday Corpus Christi
15 Aug 2024 Thursday Assumption Day
1 Nov 2024 Friday All Saints’ Day
11 Nov 2024 Monday Independence Day
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday 2nd Day of Christmas

Sick Days

All employees are entitled to paid sick leave linked to the number of years completed service and the employee’s age, as specified in the employment contract.
Employees under 50 years old are entitled to up to 33 days of paid sick leave, paid by the employer. Should the sick leave continue past day 33, Social Security (ZUS) will take on the payments from day 34 onwards.
Employees older than 50 years are entitled to up to 14 days of paid sick leave, paid by the employer. Should the sick leave continue past day 14, Social Security (ZUS) will take on the payments from day 15 onwards.
Sick leave is paid by the employer at a rate of 80.00% of the average salary in the past 12 months or at 100.00%  if the illness occurs during pregnancy or is caused by an accident on the way to or from work. Sick leave caused by an accident at work or due to the employee’s sick child/sick relative is also paid for by Social Security (ZUS).

Maternity Leave

Female employees are entitled to maternity leave periods linked to the number of children born/adopted as follows:

  • 20 weeks for the birth of one child/adoption of one child
  • 31 weeks for two children, 33 weeks for three children, 35 weeks for four children
  • 37 weeks for five or more children

The Social Security Institute covers all maternity pay at 100% of the employee’s regular salary rate.
Maternity leave cannot start earlier than six weeks before the due date but can start later or even after birth and continue straight after. Employees should take a minimum of 14 weeks of maternity leave after childbirth before returning to work, and they have the option to transfer any untaken leave beyond 14 weeks to the child’s father.
Adoption leave may be used by both the adoptive father and the adoptive mother. However, under the labor code, the leave can’t be taken simultaneously by both parents.

Paternity Leave

Fathers are entitled to two weeks of paid paternity leave within the first 24 months after the child’s birth or from the date of adoption before the child is seven years old. An employee can take the leave in a maximum of two installments of one week each, and Social Security pays the leave at a rate of 100.00% of the employee’s regular salary.

Parental Leave

In Poland, the parental leave period spans either 41 or 43 weeks. The duration of parental leave hinges on the number of children born or adopted at once, and it’s available to both male and female employees as well as adoptive parents upon the completion of maternity leave.

Parents have the flexibility to divide this leave according to their preferences, but each parent has an exclusive right to a 9-week portion. For instance, if the child’s mother opts to utilize the entire parental leave, she can claim a maximum of 32 weeks, leaving the remaining 9 weeks exclusively for the other parent. It’s important to note that regulations do not permit the transfer of the extra 9 weeks to the other parent, such as in cases of single parents raising children.

Parents also have the option to take parental leave concurrently, meaning both parents can be on leave at the same time, provided that the total leave taken doesn’t exceed the standard entitlement. Additionally, parental leave can be split into a maximum of 5 segments and must be utilized by the end of the calendar year in which the child reaches the age of 6.

To initiate parental leave, employees must submit an application at least 21 days before the intended start date. These applications can be submitted in either written or electronic form.

During the initial six weeks (eight weeks in the case of multiple children or three weeks for adopting older children), the leave is paid at 100% of the employee’s salary. Subsequently, for the remaining duration, it’s covered by Social Security and paid at 60% of the employee’s salary. However, if the employee submits an official written request for parental leave no later than 21 days after the child’s birth, the pay rate increases to 80% of the employee’s salary, and Social Security covers it for the entire leave period.

Other Leave

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types for the following:

  • Disability Leave: A person classified as having a severe or moderate degree of disability is entitled to an additional ten days of annual leave. After working one year and after being classified in one of the above degrees of disability, the person acquires the right.
  • Military Leave: Employees are entitled to unpaid military leave to perform their duties.
  • Childcare Leave: An employee raising at least one child aged up to 14 years is entitled to two paid days off a year, covered in full by the employer. Additionally, employees who have worked for at least six months are entitled to a further three years of unpaid childcare leave until the child is five-years-old (18-years-old if the child is disabled).
  • Special event leave: Employees are entitled to two paid days off for close family member life events, such as a wedding, a child’s birth, or a funeral.
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to the employment agreement and collective agreement in place and is based on the type of contract and reason for termination.

Notice Period

In Poland, the notice period for a temporary or permanent employee is dependent on the employee’s length of service as below:

  • 0 – 6 months of service – 2 weeks’ notice
  • 6 months – 3 years of service – 1 month’s notice
  • More than 3 years of service – 3 months’ notice

Severance Pay

For employers with more than 20 employees or for employees who have been dismissed by fault of the employer, the severance pay is dependent on the employee’s length of service as below:

  • 1 month severance pay – less than two years of employment
  • Two months’ severance pay – between two and eight years of employment
  • Three months’ severance pay – over eight years of employment

The maximum amount of severance pay, is set at 15 times the minimum wage.

Probation Period

Probation or trial periods are generally set within the employee’s employment contract, however, standard practice in Poland is three months.

Common Benefits

  • Health Allowance: Between 50-200 EUR per month
  • Car Allowance: Between 100-500 EUR per month
  • Work From Home allowance: 50-100 EUR per month
  • Home Office setup: 1,000 EUR per annum
  • Phone Allowance: 20-100 EUR per month

VISA

VISA

If you are a non-EU resident who wishes to work in Poland, you must first obtain a work permit. The work permit is only applicable to the job at the time of application. A new application will need to be sought should the employee change jobs. A work permit is only valid for three years.
Poland has five different types of work visas:

  • Type A – If you find employment based on an employment contract or civil law contract with an employer with an office registered in Poland. This is the most popular work permit.
  • Type B – This work permit is valid if you are a board member and residing in Poland for a total period that exceeds six months within 12 subsequent months.
  • Type C –You can apply for this work permit if you are sent to Poland by a foreign employer for more than 30 days in a calendar year to work for the foreign employer’s subsidiary or branch office in the country.
  • Type D – You are eligible for this visa if a foreign employer sends you to work in export services temporarily. The foreign employer must not have a branch or subsidiary of its own in Poland.
  • Type E – You can apply for this visa if you take up work-related tasks that do not fall into any of the above four categories.

VAT

General

The standard rate of VAT in Poland is 23.00%.

Stay up to date on payroll & employment law changes

Version History

October 25, 2023
Parental Leave has been updated.
June 21, 2023
Minimum wage has been updated.
August 3, 2022
Employee income tax brackets have been updated.
April 25, 2022
The minimum wage for local hires is now 3,010 PLN gross per month, and 19.70 PLN gross per hour for civil contract workers.
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
Minimum wage: Rises to 2,800 PLN.
More

Questions & Answers

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George V.
George V.
2 years ago

Hi, Could you please help me understand how education plays a role in an employees annual leave?

Erez Greenberg
Erez Greenberg
2 years ago
Reply to  George V.

Hi George,

Since years of education are included in the employment period, an employee’s education can boost total employment years, thus increasing annual leave days. For instance, a degree from a university counts as 8-years, only requiring 2-years of continuous employment to increase annual paid leave from 20 days to 26 days.

Elena
Elena
10 months ago
Reply to  Erez Greenberg

Hello! pls clarify – why university counts as 8 years? is this actual real length of studying in Poland? and how total length of seniority is calculating? with studying it is clear – it can be checked in diploma. But how the working seniority could be determed? Via CV? but I could write in CV what even I want. so what could be a real confirmation of real experience for seniority ? Thank you


Enny Shmurin
Admin
Enny Shmurin
9 months ago
Reply to  Elena

Hello,
After graduating from University with a Master’s Degree an employee is already considered as having seniority of 8 years in terms of the Annual Leave service length eligibility or 4 years once graduating from High school. Once an employee starts working at the employer they should provide their CV and Diploma in order to verify that they are entitled to enhanced annual leave.

Yathiym@gmail.com
Yathiym@gmail.com
2 years ago

Can we get gratuity after 2 year work in Poland warehouse job

Emily Kuhnert
Emily Kuhnert
2 years ago

Hi there, I am not certain that I understand your question. Can you please clarify? Are you being terminated from your place of employment and asking about severance pay? Or something else? Thanks

Harrison J.
Harrison J.
2 years ago

Are temporary workers also entitle to special leave?

Erez Greenberg
Erez Greenberg
2 years ago
Reply to  Harrison J.

Hi Harrison, Yes, temporary workers are entitled to special leave, but should submit an application for the leave accompanied by a document confirming the occurrence of particular circumstances.

Agathe N
Agathe N
2 years ago

Hello,

can you please help me understand how to treat the following case: Long term sick leave of an employee that gets salary + a performance based quarterly paid out bonus on top. Do we have to pay out the bonus?
Thank you

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Agathe N

Hi Agathe, thank you for your question. If this is a performance-based bonus and a component that is not considered part of the regular salary, then there should be no need to pay it out. I suggest that you look at the employee’s employment contract or any agreement that clearly spells out the stipulations for receiving said bonus.

Nisha
Nisha
1 year ago

Do employee’s in Poland get a pay increase after 3 months employment?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Nisha

There is no law requiring employees to receive a pay increase after three months.

Marcin
Marcin
1 year ago
Reply to  Nisha

Usually yes, in most companies you will get an increase after 3 months 🙂
Cheers

Jagoda
Jagoda
1 year ago
Reply to  Nisha

As an employee of 4 different companies – no, unless it’s an internship contract changing to full time contract.

Jo Barr
Jo Barr
1 year ago

Can international hires relocated to Poland have a salary in Euros while the local currency is in Zloty? They will have to pay taxes in Poland as a local tax resident.

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Jo Barr

This is not possible unfortunately, employers must always pay the worker in the local currency.

Cris
Cris
1 year ago

Hi,
How do I calculate my earnings in Poland during my illness? For example if my gross salary is 10k/month and I get sick leave for 2 days how much will be taken from my salary? Thanks in advance Cris

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Cris

Sick leave is paid at 80.00% of the allowance basis or 100.00% of the allowance basis if the illness occurs during pregnancy or is caused by an accident on the way to or from work. Employees less than 50 years old are entitled to up to 33 days paid sick leave, paid by the employer and employees older than 50 years old are entitled to up to 14 days paid sick leave, paid by the employer.

Victor
Victor
1 year ago

¿Are workers who have worked less than 12 months entitled to receive the 13th salary?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Victor

A 13th-month salary is not legally required. Since it is not legally required, it is up to the employer’s discretion or what is written in the contract.

nino jose
nino jose
1 year ago

is there any child pension from the government in every family?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  nino jose

In the case of the Family Care Capital scheme, families receive 12,000 zloty for each child after the firstborn between the ages of 12 and 36 months. All families, regardless of income, will be eligible for the benefit.

julie
julie
11 months ago

Hi, do employer obliged to pay the surviviors benefits if the employee dies? is it calculated in the payroll and included in final pay?

Enny Shmurin
Admin
Enny Shmurin
11 months ago
Reply to  julie

Hello, in Poland, survivor benefits are usually paid by the Social Insurance Institution (ZUS) to the family members or dependents of a deceased employee. The survivor benefit is typically equal to a percentage of the deceased employee’s earnings and is paid on a monthly basis.
The amount of the survivor benefit depends on several factors, such as the length of time the employee was covered by social insurance, the number of dependents, and the amount of the employee’s earnings. The benefit is usually paid to the spouse, children, or other dependent family members of the deceased employee.
In some cases, the employer may also provide additional survivor benefits to the family members of the deceased employee. This may include a lump-sum payment or other types of financial support. However, this is not mandatory and depends on the specific terms of the employment contract or collective bargaining agreement.

Carla Rebelo
Carla Rebelo
9 months ago

Hi. Is there a payment for a holiday allowance? If so, what are the rules?
Thanks

Enny Shmurin
Admin
Enny Shmurin
9 months ago
Reply to  Carla Rebelo

Hello,

Paid annual leave is due to each employee employed based on employment contract. Duration of holiday leave depends on general work seniority and amounts to 20 or 26 days per calendar year.

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Payroll and Benefits Guide
in Poland

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

Poland
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Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
6 Jan 2024 Saturday Epiphany
1 Apr 2024 Monday Easter Monday
1 May 2024 Wednesday Labour Day
3 May 2024 Friday Constitution Day
30 May 2024 Thursday Corpus Christi
15 Aug 2024 Thursday Assumption Day
1 Nov 2024 Friday All Saints’ Day
11 Nov 2024 Monday Independence Day
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday 2nd Day of Christmas