Employer Of Record in Poland
We make it easy and painless to expand your business into Poland. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.
Accelerate your growth into Poland Compliantly and hassle-free
How we can help you expand in Poland
As your EOR in Poland we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Your candidate is hired by a PEO in Poland provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.
Expand to Poland with Serviap Global
Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity.
In just a few days, you can easily and safely build a presence in Poland being sure that your staff will be hired in compliance with labor and tax regulations.
Quick Facts
Currency:
Polish Złoty (PLN)
Capital:
Warsaw
Payroll Cycle:
Monthly
Language(s):
Polish
Poland Country Facts
Poland is a dynamic market located in the heart of Central Europe.
American exporters and investors like Poland because of the country’s large population, who are well-educated and have a competitive workforce,valuable access to the European Union market and good prospects for economic growth.
Poland is one of the largest single markets among the “new” European Union (EU) states and they joined in 2004. When they did they adopted the EU legislation which led their economic reforms. This improved situations for businesses and helped to bolster economic growth.
The Economy
Since 1988, Poland has pursued the right for economic liberalization, and the country is an amazing success story for all of the post-communist countries who suffered terribly under the regime. It has continued its incredible economic growth since the 90’s.
The Importance of Small and Medium-sized Companies
There is great potential for development in the small and medium-sized enterprise (SME) sector in Poland.
Researchers find the share of income for companies with foreign capital is much higher and amounts to 25.7 per cent. They yield nearly three-times more revenues than Polish-owned companies, mainly because most of them are subsidiaries, which use the resources of their parent companies.
The vast majority (92.8 per cent) of Polish SMEs are owned by private individuals but 6 percent of the firms are subsidiaries of Polish or foreign companies.
Population Characteristics
Poland has around 38 million citizens. The literacy rate is 99.8%.Students in Polish schools typically learn one or two foreign languages, 67.9% study English.
Economic Opportunities
Poland wants foreign investors to invest in their country and become a source of jobs, capital growth, and a vehicle for technology transfer, research and development (R&D), and furthermore, help them with integration into global supply chains.
Key Sectors of the National Economy
There are four key sectors for the national economy:
- Food processing
- Agriculture
- Energy
- Manufacturing
- Tourism
Human Talent
One of the biggest growths in Poland has been in IT outsourcing over the last few years. Software development companies in Poland attract a lot of foreign investors because of their wide pool of skilled software engineers, employees and a convenient proximity to the Western World.
Prominent Cities for Business
- Kraków
Krakow is the second-largest city and first in terms of software developers in Poland. - Lódz
Łódź (pronounced Wouj) is the third biggest city in Poland, and the majority of it is built around the textile industry. After the Communist era, the city became one of the most important industrial bases in Poland. - Wroclaw
Wroclaw’s has the following industries: the automotive industry, electrical engineering, household goods, finance, medical industry and logistics. - Poznan
The region’s main industries are food, chemicals and electro mechanics.
Technological Ecosystem
The government in Poland wants responsible business development plans, as well as private research and development spending, and good research quality. Because of this university-industry collaboration is important, as it could improve Poland’s ability to innovate and embrace new technology and help to develop industries that last.
Facilities for Foreign Investment
The U.S. has a market share of 3% for Poland’s imports, so there is a lot of potential here for growth. Poland is very welcoming of foreign investment and American companies are one of the largest groups of investors for this country.
Business Culture in Poland
- Meeting & Greeting
Punctuality is expected and taken extremely seriously. Polish businesspeople begin with formal etiquette. A firm handshake and direct eye contact are appropriate. - Communication Styles
Letters should be addressed to the company rather than to a specific person. This prevents a letter from being held up if the person it is addressed to is away from the office. - Pack Your Patience
Expect some small talk and getting-to-know-you conversation before business is discussed. Business is conducted slowly. You will have to be patient and not appear ruffled by the strict adherence
to protocol.
Poland Gastronomy: regional and traditional cuisines
Pierogi – is a traditional rustic meal. It’s one of Poland’s favorite dishes and can be made to be sweet, spicy, cheesy, or with onions, ground beef, vegetables and potatoes. Sauerkraut is often included as one of the ingredients.
A traditional Polish Christmas Eve feast includes pierogi as the 12th course.
Salatka Jarzynowa – is a salad that can be made with a variety of fresh or pickle vegetables, eggs, and smoked pork. All of the contents were normally mix together with mayonnaise or sour cream, then season it with fresh dill.
Golabki – a classic Polish food that consists of cabbage leaves packed with mince beef and rice rolled up and cooked in a mushroom or tomato sauce. In Polish, golabki means little pigeons, referring to their small size and shape.
Makowie – A traditional cake where poppy seed paste is placed between layers of dough. Raisins, almonds, honey, and orange peel can be added to the cake in order to enhance its flavors. Ideally, makowiec should not be too sweet.
General Highlights
| Year | 2022 |
| Country | Poland |
| Capital | Warsaw |
| Num. States / Province | 16 provinces known as voivodeships |
| Principal Cities | Kraków, Lódz, Wroclaw, Poznan |
| Language | Polish |
| Local Currency | Polish Zloty |
| Major Religion | Catholic |
| Date Format | dd/mm/yyyy |
| Thousands Separator Format | 9 999 999,00 |
| Country Dial Code | +48 |
| Time Zone | UTC +2. CEST |
| Population | 38 million |
Border Countries | Ukraine lies on the eastern border of Poland. The two countries share a long land border which represents Poland’s longest eastern border. Poland shares a land border with Belarus, a country that is situated northwest of Poland. |
| Continental surface | 312,696 km2 |
| Fiscal Year | January 1 – December 31 |
| VAT % | 23% |
| Minimum Wage | The minimum gross wage per hour in Poland is 18.3 zlotych (approximately $4.57 USD) |
| Taxpayer Identification Number Name in the country | Numer Identyfikacji Podatkowej, (NIP) which is the Polish name for a tax ID number. |
| Current President | Andrzej Sebastian Duda |
What you need to know about employing personal in Poland:
Laws and Agencies that regulate labor relationships
| Laws | Brief Description |
| The Constitution of the Republic of Poland | Employees’ and employers’ rights and obligations are defined in the following sources of labour law. |
| Labor Code | The Labour Code is the key legal act regulating relationships that are between employers and employees. |
Tax Code | Value Added Tax system. Polish VAT is overseen by an act called the VAT act and also comes under the Fiscal Penal Code. This is enforced by the Ministry of Finance. |
Social Security | In Poland, social security consists of: • Pension insurance • Disability insurance • Accident insurance • Labour fund • Sickness insurance, and • Health insurance. The Polish social security system covers people economically active, like employees or self-employed people. Social insurance may be mandatory or voluntary. 52% of the contribution assessment basis – for retirement insurance contributions (they are paid by the contribution payer and the insured person in equal parts – 9.76% each) 8% of the contribution assessment basis – for disability insurance contributions (the contribution payer pays 6.5% and the insured person pays 1.5%) 45% of the contribution assessment basis – for sickness insurance contributions (the entire amount is paid by the insured person) |
Key Tax and Labor Authorities
| National Revenue Administration (Krajowa Administracja Skarbowa, KAS) |
KAS is responsible for the implementation of revenues from taxes, customs duties, fees and non-tax budget receivables. |
| The Parliament (Sejm, Senate) | This is the supreme public authority, with legislative and supervisory competencies. |
Labor Contracts
The provisions of Polish Labour Code and other acts that are to do with the labour law apply to those employed with employment agreements. Anyone performing work under civil law agreements are not legally considered employees.
| Contracts | The employment contract should specify the parties to the contract, type of contract, date of its conclusion, as well as working conditions and remuneration, including in particular: • Type of work • The place where the work is performed • Remuneration corresponding to the type of work, detailing the components • Of remuneration, • Time of work • The date of commencement of employment |
| The International Labor Organization | They are a member |
| Work Hours | The Labour Code lightly touches on the rules of working times. According to the Polish Labour Code, working times cannot be more than 8 hours in a 24-hour period and an average of 40 hours in an average five-day working week in an applicable calculation period, which does not exceed 4 months. |
Basic Requirements
Labor Code dictates that to employ someone:
The employer has to inform the employee in writing, no later than within 7 days from the date of conclusion of employment contract about:
- The standard daily and weekly working time binding the employee
- The frequency of wage payments
- The length of the annual leave to which the employee is entitled
- The length of the period of notice binding after termination of employee’s work
- Each collective agreement covering employee
Payroll
Legal Benefits in Poland
| Minimum Wage | The minimum gross wage per hour in Poland is 18.3 zlotych (approximately $4.57 USD) |
| Overtime | Overtime work may be compensated by way of a statutory pay premium. The premium adds to the employee’s regular wages. The premium is: 100% of the employee’s wages (based on the individual hourly or monthly rate) for overtime work performed at night and on Sundays and holidays which are not working days for the particular employee. |
| Bonus | Many employers will pay many bonuses to their employees. This is a common practice because there are no strict rules other than a general income tax which is applied. |
| Occupational risk insurance | The Polish social insurance system provides coverage for inability to work due to disability, death benefits for children of a deceased employee, and sickness and work accident insurance. However, many companies provide additional coverage to provide a better quality of life for employees and their families. |
| Vacations or PTO | • Holiday entitlement in Poland depends on the employee’s overall length of employment and number of years of education. • As for education, the greatest credit is given for university education, which counts as 8 years of employment. • And so: employees with a total length of employment of up to 10 years are entitled to 20 days of holiday per year. |
Leaves of Absence Employees have the right to paid absences for the following things: | The length of paid annual leave in Poland depends on the employee’s seniority. A person who began their first job has the right to 1/12 of their holiday entitlement after completing a month of work, every month. An employee is entitled to an annual, paid vacation leave amounting to 20 days – only if they have been employed for less than 10 years, or to 26 days if they have been with the company for at least 10 years. |
Employers Contribution or Labor Cost
Annual Taxable Income
Certain types of income are not aggregated but are subject to a flat rate tax of 19%.
| Over this amount | Not over this amount | Tax % on Excess |
| 0PLN | PLN 85,528 | 17% |
| PLN 85,528 | R321,600 | PLN 14,539 + 32% |
Corporate Tax Rates
Poland has a below-average corporate tax rate of 19 percent. Resident companies are taxable on their worldwide income, including capital gains. Corporate income tax is levied at a reduced rate of 9% for small taxpayers and new companies in the first year of business activity.
Disability
Insurance for accidents is required for anyone who has to have retirement insurance and disability insurance. Those people are some of the following, employees, contractors, members of agricultural production cooperatives, persons carrying out non-agricultural activity and persons cooperating with them
Public Holidays
The Labor Code provides for public holidays that are observed in Poland:
| Date | Holiday Name |
| January 1 | New Year’s Day |
| January 6 | Epiphany |
| April 17 | Easter Sunday |
| Monday after Easter | Easter Monday |
| May 1 | Labour Day |
| May 3 | Constitution Day |
| June 5 | Pentecost Sunday |
| June 16 | Corpus Christi |
| August 15 | Assumption Day |
| November 1 | All Saints’ Day |
| November 11 | Independence Day |
| December 24 | Christmas Eve |
| December 25 | Christmas Day |
Termination
| Type of Termination | Brief Description |
Termination by mutual consent | In case of agreements for trial period, the periods of termination notice are: • 3 business days if the trial period does not exceed 2 weeks • 1 week if the trial period is longer than 2 weeks • 2 weeks if the trial period is 3 months. |
Termination with notice | The employment agreements can be terminated by notice given by each party. The termination notice period depends on the period of employment. Notice periods for definite and indefinite period agreements are: • 2 weeks if the employee was employed for less than 6 months • 1 month if the employee was employed for at least 6 months • 3 months if the employee was employed for at least 3 years. • In case of agreement for an indefinite period, the employer’s notice of termination should state the reason justifying the termination. The law in Poland does not provide a list of possible reasons, but according to Polish judicature, the reason should be real, concrete and understandable for employees. |
Termination without notice | The following are a list of termination with notice requirements: • In the event of a severe violation by the employee of the employee’s basic duties • If the employee commits an offense, which prevents further employment in the occupied job position – if the offense is obvious or has been declared by a final court sentence • If the employee, through his fault, loses a license required to perform work in the occupied job position • If an employee is unable to work as a result of an illness: • For more than 3 months – if the employee has been employed with a given employer for less than 6 months • For longer than the total period of receiving remuneration and welfare and sickness benefits on that account, as well as receiving rehabilitation allowance for the first 3 months – if the employee has been employed with a given employer for at least 6 months, or if the incapacity to work was caused by an accident at work or an occupational disease • If an employee has any justifiable absence from work for other than aforementioned reasons, lasting for more than 1 month. |
Other forms of compensation upon termination include:
Poland’s labor code mandates that a severance payment is provided in cases where the employer has 20 or more employees, and the dismissal of the employee is through the fault of the employer. The severance payment total depends on how long the employee has worked for the employer, drawing from the following structure:
Length of Employment | Severance Amount |
Less than two years of employment | The employer must pay the employee one month of severance pay |
Employment of between two and eight years | The employer is responsible for two months of severance pay |
Employment over eight years | The employer is liable for three months of severance pay |
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