Poland

Overview

Currency

Polish Złoty (PLN)

Capital

Warsaw

Time Zone

GMT+1

Employer Tax

19.48% - 22.14%

VAT

23.00%

Fiscal Year

1 Jan - 31 Dec

Table of Contents

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Key Country Facts

Poland, officially known as the Republic of Poland, is a country located in Central Europe. It has a population of over 38 million people and its capital city is Warsaw. Poland is a parliamentary democracy and a member of the European Union.

Area

Poland has an area of 312,696 square kilometers, making it the ninth-largest country in Europe.

Climate

Poland has a temperate climate, characterized by warm summers and cold winters. The average temperature in the summer is around 25°C (77°F), while in the winter it can drop to -5°C (23°F). The country receives moderate rainfall throughout the year, with the wettest months being July and August.

Culture

Poland has a rich cultural heritage, with a long history of art, literature, music, and cuisine. Polish culture has been shaped by the country's location at the crossroads of Eastern and Western Europe. Some of Poland's most famous cultural landmarks include the Wawel Castle in Krakow, the Malbork Castle, and the Old Town of Warsaw.

Religion

The majority of the Polish population identifies as Roman Catholic, with the Church having a significant influence on the country's culture and politics. Other religious groups in Poland include Orthodox Christians, Protestants, and Jews.

Official Language

The official language of Poland is Polish, which is spoken by the majority of the population. It is also recognized as a minority language in several neighboring countries. English, German, and Russian are also widely spoken in Poland, especially in larger cities and tourist areas.

Payroll Information

Payroll in Poland is regulated by a range of employment laws and regulations. Employers must ensure that they comply with all relevant regulations when hiring and paying employees, and that employment contracts are in line with the requirements of Polish labor law.

Payroll Cycle

In Poland, the standard payroll cycle is monthly, with pay usually disbursed to employees by the 10th day of the following month. It is common for employers to pay their employees through bank transfer or via electronic payment systems.

Employment Law

Employment law in Poland is regulated by the Labor Code, which sets out the legal framework for employment relationships. Employers are required to comply with a range of employment regulations, including minimum wage requirements, working time limits, and social security contributions.

Employment Contract

Employment contracts are a legal requirement in Poland, and must be provided to employees within 7 days of their employment starting. The contract must include information on the terms and conditions of employment, such as salary, working hours, and any other benefits or obligations. There are different types of employment contracts in Poland, including fixed-term contracts and indefinite-term contracts.

Employment contracts must also comply with Polish labor law, which sets out a range of minimum employment standards. For example, the minimum wage in Poland is set by law and must be paid to all employees. Employers are also required to provide their employees with mandatory social security and health insurance contributions.

Probation Period / Trial Period

In Poland, the probation period is a period of time during which an employer can assess an employee's suitability for a particular role. The probation period cannot exceed 3 months for a fixed-term contract and 6 months for an indefinite-term contract. During this period, the employer can terminate the contract without notice.

Working Hours

The standard working week in Poland is 40 hours. The maximum number of working hours per week is 48, including overtime. The daily maximum is 8 hours, with breaks of at least 15 minutes for every 4.5 hours worked.

Overtime

Overtime work in Poland is regulated by law. The maximum overtime that can be worked is 150 hours per year. Overtime must be compensated with additional pay or time off in lieu. The rate of overtime pay depends on the type of employment contract and the number of overtime hours worked.

Bonus

Bonuses are not required by law in Poland, but they are a common practice. Employers can provide bonuses based on individual or company performance. The bonus must be included in the employment contract or other agreements between the employer and employee.

Termination

Employment contracts in Poland can be terminated by either the employer or employee, subject to the notice period and other conditions outlined in the contract. Termination can be with or without cause, and with or without notice, depending on the reason for termination.

Notice Period

The notice period in Poland varies depending on the length of service and type of contract. For indefinite-term contracts, the notice period ranges from 2 weeks to 3 months, depending on the length of service. For fixed-term contracts, the notice period is equal to the length of the contract, up to a maximum of 3 months.

Redundancy / Severance Pay

In the event of redundancy, the employer must provide notice to the employee and follow specific legal procedures. The employee is entitled to severance pay, which is calculated based on the length of service and average earnings. The amount of severance pay cannot be less than the minimum statutory amount.

Maternity Leave

Female employees in Poland are entitled to 20 weeks of maternity leave, with 16 weeks paid by the social security system and the remaining 4 weeks paid by the employer. Maternity leave can be taken from 6 weeks before the expected date of birth and up to 26 weeks after the birth.

Paternity Leave

Male employees in Poland are entitled to 2 weeks of paternity leave, which must be taken within 6 months of the birth. The leave is paid by the social security system and can be taken as a single two-week period or two separate one-week periods.

Parental Leave

Parents in Poland are entitled to parental leave until their child reaches the age of 3. This leave can be taken by either parent, or split between both parents. The length of parental leave depends on the age of the child, and can be taken as a full-time or part-time leave.

Vacation and Annual Leave (paid time off)

Employees in Poland are entitled to a minimum of 20 days of paid annual leave per year, which increases with seniority. The maximum amount of leave that can be taken in a single year is 26 days.

Sick Leave

Employees in Poland are entitled to paid sick leave if they are unable to work due to illness or injury. The length of sick leave depends on the duration of the illness, and can be up to 33 days per year.

Other Leave

Polish labor law also provides for several other types of leave, including study leave, care leave, and special leave for personal reasons. These types of leave may be paid or unpaid, depending on the circumstances.

Other Benefits

Employers in Poland may provide additional benefits to their employees, such as private health insurance, retirement benefits, and company cars. These benefits are not required by law, but are often used as a way to attract and retain talent.

Holiday

In addition to the above leaves, employees in Poland are entitled to public holidays, which include New Year's Day, Easter, Labor Day, Constitution Day, Independence Day, Christmas Day, and the Second Day of Christmas. If a public holiday falls on a Saturday or Sunday, the following Monday is usually observed as a holiday.

Taxation

Taxation in Poland includes personal income tax, which is a progressive tax system with rates ranging from 17% to 32%. Social security contributions are also mandatory for both employers and employees, and cover a range of benefits, including health care, sickness benefits, disability benefits, and retirement benefits. Employers must ensure that they comply with all relevant tax and social security regulations when hiring and paying employees in Poland.

Personal Income Tax

In Poland, personal income tax (PIT) is a progressive tax system with rates ranging from 17% to 32%. The tax is levied on income earned by individuals, including employment income, business income, and investment income. The tax year in Poland is the calendar year, and tax returns must be filed by April 30th of the following year.

The tax rate for income up to 85,528 PLN (approximately $21,200) is 17%, and the tax rate for income above this threshold is 32%. Taxpayers are entitled to a tax-free allowance of 8,000 PLN (approximately $2,000) per year, and certain deductions and tax credits are available for specific expenses, such as health care expenses, charitable donations, and education expenses.

Social Security

In Poland, social security contributions are mandatory for both employers and employees. The social security system covers a range of benefits, including health care, sickness benefits, disability benefits, and retirement benefits.

The contributions are calculated as a percentage of the employee's gross salary, with the employer and employee each responsible for paying a portion of the contributions. The employee's portion of the contribution is currently 9.76% of their gross salary, and the employer's portion is 17.2% of the employee's gross salary.

Other Tax

In addition to the standard social security contributions, employers in Poland may be required to pay additional contributions to specific funds, such as the Labor Fund or the Guaranteed Employee Benefits Fund.

Visas and Foreign Workers

General Information

Foreign nationals who are not citizens of the European Union (EU), European Economic Area (EEA), or Switzerland are required to obtain a work visa in order to work in Poland. The following is general information for obtaining a work visa in Poland:

  1. Employment Contract: The first step in obtaining a work visa is to obtain a job offer from a Polish employer. The employer must provide the foreign national with a written employment contract, which should include information such as the job title, salary, working hours, and duration of the contract.
  2. Work Permit: Once the employment contract has been signed, the employer must apply for a work permit on behalf of the foreign national. The application should be submitted to the appropriate voivode office in Poland.
  3. Visa Application: After the work permit has been approved, the foreign national can apply for a national visa at a Polish consulate or embassy in their home country. The visa application should include the approved work permit, the employment contract, and other required documents.
  4. Arrival in Poland: Once the visa has been granted, the foreign national can travel to Poland and begin working. Within the first 3 days of arrival, the foreign national must register their place of residence with the local authorities.
  5. Temporary Residence Permit: The work visa is usually valid for up to 1 year, and can be renewed if the foreign national continues to meet the requirements. After 2 years of working in Poland, the foreign national may be eligible to apply for a temporary residence permit, which allows them to live and work in Poland for a longer period of time.