Discover the global hiring and employment landscape in Poland – emerging as a key player in Central Europe, Poland offers a stable economy and a skilled workforce. With its strategic location and business-friendly policies, Poland presents abundant opportunities for companies seeking growth and development in the region.
| Annual Taxable Income (PLN) | Progressive Tax Rate |
|---|---|
| Up to 120,000 | 12% of the amount up to PLN 120,000 - PLN 3,600 |
| Over 120,000 | PLN 10,800 + 32% of the amount in excess of PLN 120,000 |
Those with a total annual income of over PLN 1,000,000 may be required to pay a solidarity tax amounting to 4% of their income in excess of PLN 1,000,000.
There are no local taxes on employment income in Poland.
Contributions made for Pension Insurance and Disability Insurance shall be calculated based on the employee's annual basic salary of up to 30 times the average monthly salary. In 2024, this amounts to 30 * PLN 7,824 = PLN 234,720.
Note: This limit shall also apply to contributions made to the Bridge Pension Fund.
| Contribution Rate | Note | |
|---|---|---|
| Social Security Insurances | 17.93% | This is made up of Pension Insurance (9.76%), Disability Insurance (6.5%) and Accident Insurance (1.67%**). |
| Labor Fund | 2.45% | This contribution is split to the Labor Fund (1%) and the Solidarity Fund (1.45%). |
| Guaranteed Employee Benefits Fund | 0.1% | - |
| Bridge Pension Fund | 1.5% | Only applies to employees who perform work in a special condition or of a special nature. |
**Note: The standard contribution rate for Accident Insurance (1.67%) shall remain valid until March 31, 2024. The actual rate may vary depending on several risk factors (0.67%–3.33%).
| Contribution Rate | Note | |
|---|---|---|
| Pension Insurance | 9.76% | - |
| Disability Insurance | 1.5% | - |
| Sickness Insurance | 2.45% | - |
| Health Insurance | 9% | This is calculated based on the net wages after deducting the contributions for pension insurance, annuity and sickness insurance. |
As a rule, payment of remuneration takes place at least once a month, on a fixed and predetermined date.
Effective July 1, 2024, the minimum wage in Poland is set at PLN 4,300 per month.
There is no statutory bonus in Poland.
The termination of an employment relationship can be done by mutual agreement, unilaterally with or without notice, or for reasons unrelated to the employee.
In the event of a unilateral termination, the terminating party is obligated to give to the other party a written declaration of intent to terminate. The employer's declaration shall contain their reasons for dismissal and the letter of rights of the employee to appeal against the termination before the labor court.
Employers have the obligation to maintain the validity of their dismissal decision by ensuring that they have a specific, genuine and substantial cause for their decision. In any case, those intending to dismiss their employees for reasons attributable to the employee shall take action within a month of becoming aware of the circumstances that justify the termination.
The length of the notice period for contracts for an indefinite period and fixed-term contracts depends on the period of employment by the employer concerned and thus on the employee's seniority, as follows:
| Length of service | Notice period |
|---|---|
| Less than 6 months | 2 weeks |
| At least 6 months | 1 month |
| At least 3 years | 3 months |
Notice periods of fixed-term contracts or contracts for an indefinite period may be shortened by mutual agreement without the need for compensation. However, unilateral reduction by the employer can only occur if the termination is because of bankruptcy, the liquidation of the employer or for other reasons unrelated to the employee. For such reduction, the employee shall still be entitled to compensation for the remainder of that period. In any case, the 3-month notice period can be reduced to a month at most.
Termination of a contract of employment without notice is possible only in the circumstances referred to in the provisions of the labor law.
| Reasons justifying immediate dismissal | Reasons justifying immediate resignation |
|---|---|
| Immediate dismissal through the fault of the employee | Immediate resignation through the fault of the employer |
| Immediate dismissal without the employee's fault |
It is always good practice to ensure that there is no infringement of the provisions governing immediate termination.
Note: Notice periods counted in months end on the last day of the month, while notice periods counted in weeks ends on a Saturday and must cover a full week or 2 weeks.
An employee who is covered by the act governing the provisions surrounding collective and individual redundancies is entitled to the following severance payment:
| Length of service | Severance |
|---|---|
| Less than 2 years | 1 month's remuneration |
| 2–8 years | 2 months' remuneration |
| More than 8 years | 3 months' remuneration |
This is only applicable to cases in which the employee is employed in an establishment with at least 20 employees, and is dismissed for reasons unrelated to the employee.
Note: The amount of severance may not exceed 15 times the minimum wage applicable on the date on which the employment relationship is terminated.
An employment contract can be concluded for a trial period, which may precede the conclusion of other contracts of employment. This can only be concluded once.
| Purpose of trial period | Duration of trial period |
|---|---|
| To verify the qualifications of the employee and their ability to carry out a specific job. | As a general rule, this period shall not exceed 3 months |
Trial periods can be extended once by up to a month if this is justified by the nature of the work. Furthermore, the contracting parties may agree to have the duration of trial period be extended by the time the employee is on leave or other excused absences. It is also possible to re-employ the same employee for a trial period if the employee is employed to perform a different type of work.
If the trial period is concluded preceding a fixed-term contract of employment, the following shall be observed:
| Duration of fixed-term contract | Maximum duration of trial period |
|---|---|
| Less than 6 months | 1 month |
| At least 6 months, but less than 12 months | 2 months |
| At least 12 months | 3 months |
The length of the notice period for a contract concluded for a trial period is determined by the length of the trial period, as follows:
| Duration of trial period | Notice period |
|---|---|
| Up to 2 weeks | 3 working days |
| Longer than 2 weeks | 1 week |
| 3 months | 2 weeks |
Standard working hours in Poland are subject to a maximum of 8 hours per day and an average of 40 hours over the adopted reference period for employees working a 5-day workweek.
When determining an employee's weekly working time, the reference period used are subject to a maximum that ranges from 4 weeks to 12 months depending on the circumstances that justify it. More information on reference periods can be accessed here.
Employees are entitled to a break period that varies according to the amount of working time in a given day, as follows:
| Daily hours worked | Duration of break period |
|---|---|
| At least 6 hours | At least 15 minutes |
| More than 9 hours | At least 30 minutes |
| More than 16 hours | At least 45 minutes |
These breaks count as working time, which means, among other things, that the employer may not require the employee to work them off at a later date.
Overtime work refers to work performed in excess of 8 hours per day or 40 hours per week. However, this definition may vary depending on the adopted working time system. Working overtime is allowed only under very specific circumstances, and employees required to work overtime shall be properly compensated for their time.
An employee is always entitled to regular remuneration for each hour of overtime work. In addition, overtime work shall also be compensated with additional remuneration, as follows:
| 100% additional remuneration | 50% additional remuneration |
|---|---|
| Overtime work per day falling at night and on Sundays and public holidays which are not work days | Overtime work per day falling on days which are work days for the employee |
| Overtime work per day falling on a day off granted in exchange for work on a Sunday or public holiday | Overtime work per day falling on a day off from work resulting from an average 5-day working week |
| Overtime work where the work exceeds the average 40-hour weekly working time standard | [Equivalent working time system] Overtime work per day falling on non-working days compensating the increase in the daily working hours above 8 hours |
Note: For overtime work exceeding the daily and weekly standard at the same time, the employee is entitled to only one overtime allowance.
Alternatively, overtime work can also be compensated with compensatory time off, as follows:
| At the employee's request | Without the employee's request |
|---|---|
| Granted in the amount equal to the number of hours worked. In this case, the free time may also be granted outside the reference period during which the overtime work occurred | Granted in the amount larger by a half an the number of hours worked. In this case, the free time must be granted at the latest by the end of the reference period. |
In any case, employers must keep in mind that overtime work is limited on a daily basis, weekly basis (in the reference period) and yearly basis, as follows:
| Daily limit | Weekly limit | Yearly limit |
|---|---|---|
| Working hours with the overtime may not exceed 13 hours per day | Working hours with the overtime may not exceed an average of 48 hours per week in the reference period | Overtime hours worked in connection with the employer's special needs may not exceed 150 hours per calendar year |
It is permissible to fix a different number of overtime hours in a calendar year. This may occur under a collective agreement or the workplace regulations, or under an individual contract. However, employers not subject to a collective agreement or not required to lay down work regulations must ensure that the average weekly working time limit of 48 hours is not exceeded.
Employees shall generally be entitled to at least 11 hours of uninterrupted rest per day and at least 35 hours of uninterrupted rest per week, which should usually include fall on a Sunday.
Working on a Sunday is allowed only under very specific circumstances, and employees required to work Sundays shall be granted a compensatory day off.
If it is not possible to grant a compensatory day off within 6 calendar days preceding or following a worked Sunday, the employee shall be entitled to a day off work by the end of the adopted reference period. The failure to grant compensatory day off by the above deadlines shall entitle the employee to an additional remuneration equivalent to 100% for each hour of work on a Sunday.
In any case, employees required to work overtime on a Sunday, i.e. more than 8 hours, shall be paid a 100% premium on their remuneration.
Public holidays are, in principle, days off work. Work on these days is allowed only under very specific circumstances. There are 13 days of public holidays in Poland for 2024.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Epiphany | January 6 |
| Easter Sunday | March 31 |
| Easter Monday | April 1 |
| Labor Day | May 1 |
| Constitution Day | May 3 |
| Pentecost | May 19 |
| Corpus Christi | May 30 |
| Polish Army Day, Assumption | August 15 |
| All Saint's Day | November 1 |
| Independence Day | November 11 |
| Christmas Day | December 25 |
| Boxing Day | December 26 |
Employers are obligated to grant employees required to work a public holiday a compensatory day off within their adopted reference period. The failure to grant compensatory day off by the deadline shall entitle the employee to an additional remuneration equivalent to 100% for each hour of work on a public holiday.
Employees required to work overtime on a public holiday, i.e. more than 8 hours, shall be paid a 100% premium on their remuneration. In the case of work on a public holiday falling on a Sunday, the rules of work on a Sunday apply.
Employees who have completed a full year of service shall be entitled to the following paid annual leave periods:
| Total period of employment | Annual leave |
|---|---|
| Less than 10 years | 20 days |
| At least 10 years | 26 days |
The right to take annual leave is acquired by an employee who becomes employed for the first time after the end of each month of employment, in the amount of 1/12 of the leave to which they are entitled after working for a year. After the first year of employment, the right to annual leave is acquired in each calendar year in advance.
Annual leave should be granted during the year in which the employee acquired the right to it, and in accordance with the employer's leave plan or, if there is no such plan, in agreement with the employee. In any case, If the leave is not used during the calendar year, it shall be granted by September 30 of the following year.
| Annual leave arrangement | Calculation of annual leave pay |
|---|---|
| The employee may use 4 days of leave at their request, which shall be granted by the employer. | The fixed components of remuneration are taken into account in the amount payable for the month in which the leave is taken. |
| The leave may be taken in parts at the request of the employee, with one part covering a period of at least 14 consecutive calendar days. | The variable components of remuneration are taken into account at the average amount from 3 months (or 12 months in severe cases of fluctuations) preceding the month of the leave. |
Note: The period of employment on which the duration of leave depends includes the periods of previous employment without regard to the breaks in employment and the manner in which the employment relationship was terminated. This may also include periods of completed education, subject to the established limitations.
An employee retains the right to be remunerated for the period of incapacity for work due to sickness or confinement because of an infectious disease.
| Duration of paid leave | |
|---|---|
| Employee has not reached 50 years old during the calendar year | Up to 33 days per calendar year |
| Employee has reached 50 years old during the calendar year | Up to 14 days per calendar year |
Employers are only obligated to pay out the above durations, with any additional amount being covered by the State Social Security Office. However, those with more than 20 employees shall pay the amount on behalf of the State Social Security Office before deducting the amount from their current social security contributions made for active employees.
The amount of sick pay an employee shall receive can either be 80% of their remuneration or 100% of their remuneration, as follows:
| 100% | 80% |
|---|---|
| Accident on the way to or from work | Other illness |
| Illness during pregnancy | |
| Undergoing necessary medical examinations for donors of cells, tissues and organs, and undergoing collection of cells, tissues and organs. |
Employees who have given birth to a child shall be entitled to take 20 weeks of maternity leave, 14 weeks of which must be taken after childbirth. The following shall apply in cases of multiple births:
| Number of children born | Duration of maternity leave |
|---|---|
| 1 | 20 weeks |
| 2 | 31 weeks |
| 3 | 33 weeks |
| 4 | 35 weeks |
| 5 or more | 37 weeks |
For the period of maternity leave, a maternity allowance of 100% of the allowance basis may be payable. However, if the employee submits, within 21 days after giving birth, a request for parental leave, the monthly allowance for both leaves amounts to 81.5% of the allowance basis.
There are special provisions relating to the granting of maternity leave in certain cases, such as the mother's or child's hospitalization or death.
Note: Where the allowance is not covered by social insurance, the employer generally pays for it.
Employees raising a child shall be entitled to up to 2 weeks of paternity leave, which can be taken all at once or in a weekly installment. This leave is granted at the request of the employee, which must be submitted no later than 7 days before the beginning of the leave.
Paternity leave can only be taken until the child reaches the age of 12 months or until 12 months have elapsed since the date of adoption, no longer, however, than until the child reaches the age of 14.
The relevant regulations concerning maternity leave apply to paternity leave when it comes to its interruption due to a child's hospitalization.
Employees are generally entitled to 41 weeks of parental leave or 43 weeks of parental leave in the case of multiple births. This shall be granted to both parents together. Alternatively, employees holding the certificate referred to in Article 4(3) of the Act of 4 November 2016 on support for pregnant women and families 'For Life' are entitled to 65 weeks of parental leave or 67 weeks of parental leave in the case of multiple births.
| Shared | Non-transferrable |
|---|---|
| Both parents can take parental leave at the same time. In such a case, the total duration of parental leave may not exceed the overall eligible amount. | Each employee shall have the exclusive right to 9 weeks of parental leave. This right may not be transferred to the other employee-parent of that child. |
| During the period when a parent is receiving maternity allowance for the period corresponding to the period of parental leave, the other parent may take parental leave. In such a case, the combined length of parental leave and the period of maternity allowance for the period corresponding to the parental leave may not exceed the overall eligible amount. | Taking at least 9 weeks of parental leave means that the employee has taken the non-transferable portion of that leave. |
Parental leave shall be granted once or in no more than 5 parts, and no later than by the end of the calendar year in which the child reaches 6 years of age. In any case, this leave shall be granted upon request submitted no less than 21 days prior to the commencement of the leave.
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Carer's Leave | Unpaid | 5 days |
For employees to provide personal care or support to an immediate family member or a person living in their household and requires care for serious medical reasons. The employee must submit a request for this leave no later than a day before the beginning of the leave. |
| Childcare Leave | 36 months + 36 months for a child with disability |
For employees who has been employed for at least 6 months, including periods of previous employment, to take care of a child. This leave may be granted for a period no longer than until the end of the calendar year in which the child reaches 6 years of age (or 18 years old of child is disabled). A comprehensive breakdown of this leave entitlement can be accessed here. |
|
| Special Leave | Paid | Varies |
For employees to deal with with personal and family matters, and to perform social or civic duties. The duration of leave shall be determined according to the specific circumstances in which the leave is taken for. |
| Training Leave | Paid | 6 or 21 days | For employees undergoing a professional training at the initiative or with the agreement of the employer. The duration of this leave varies according to the exams being taken. |
| Unpaid Leave** | Unpaid | - |
This refers to a leave whereby the rights and obligations of the contracting parties are suspended. This shall be granted on the basis of a written request from the employee. |
**As a general rule, the period of unpaid leave is not counted as part of the periods of work on which employee rights are dependent. There are, however, unpaid leaves that count as periods of work, such as the unpaid leave granted with the consent of the employee, expressed in writing, to work for another employer for the period set out in the agreement between employers concluded regarding this matter.
On top of the above leaves, a separate type of leave from work that an employee may be entitled to is leave on grounds of force majeure for urgent family matters caused by illness or accident, which is paid at half the employee's pay. This leave is granted in the amount of 2 days or 16 hours—the employee decides how to use this leave in the relevant calendar year in the first request submitted in that year.
| For part-timers | The hourly leave is determined in proportion to the working time of the employee. The incomplete hour of leave is rounded up to the nearest hour. |
|---|---|
| For employees whose daily working time standard is less than 8 hours | The leave granted on an hourly basis covers as many hours as the employee would have worked according to the standard for 2 days. |
The employer is obligated to grant the leave if the employee has requested it no later than the day on which the leave is taken.
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