Employer of Record in Poland

Hiring employees in Poland involves navigating specific local labor laws and administrative requirements. For international companies looking to expand into the Polish market, understanding these pathways is crucial to ensuring a compliant and efficient recruitment process. Whether you are aiming to establish a significant local presence or simply hire a few key individuals, the right approach can streamline your operations and reduce potential risks.

When considering hiring employees in Poland, you generally have a few primary options:

• Establish a local legal entity: This involves registering a company in Poland, which can be a time-consuming and costly process, requiring ongoing legal and administrative overhead.
• Utilize an Employer of Record (EOR): Partnering with an EOR like Rivermate allows you to hire employees in Poland without setting up your own entity. The EOR acts as the legal employer, handling all local compliance.
• Engage independent contractors: For specific project-based work, you might hire individuals as independent contractors. However, it's essential to classify workers correctly to avoid risks of misclassification under Polish law.

How an EOR Works in Poland

An Employer of Record service in Poland manages the complexities of local employment on your behalf. This means they are responsible for:

• Payroll processing: Calculating and disbursing salaries in PLN, ensuring accuracy and timeliness.
• Tax withholding and remittances: Managing all local income tax (PIT) and social security contributions (ZUS) for both employer and employee.
• Benefits administration: Administering mandatory and supplementary benefits, such as health insurance, pensions, and leave entitlements, in compliance with Polish regulations.
• Compliance with local labor laws: Adhering to the Polish Labor Code regarding employment contracts, working hours, termination, and other statutory requirements.
• HR administration: Handling onboarding, offboarding, and day-to-day HR support for your employees in Poland.
• Visa and work permit sponsorship: Facilitating the necessary documentation for foreign nationals who require work authorization to be employed in Poland.

Benefits of Using an EOR in Poland

Partnering with an EOR offers distinct advantages for companies seeking to hire in Poland without the commitment of establishing a local entity:

• Accelerated market entry: Hire employees in Poland rapidly, often within days, bypassing the lengthy process of entity registration.
• Reduced compliance risks: Mitigate the complexities and potential penalties associated with navigating Poland's intricate labor laws and tax regulations.
• Access to top talent: Secure skilled professionals in Poland without the operational burden of setting up a legal presence.
• Cost-effectiveness: Avoid significant upfront investment and ongoing costs associated with establishing and maintaining a local subsidiary.
• Focus on core business: Free up your internal resources from administrative and legal burdens, allowing your team to concentrate on strategic growth initiatives.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Poland includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Poland.

Poland's tax obligations for employers in 2025 include contributions to social security, healthcare, and voluntary retirement schemes. Employers must contribute to social insurance (retirement 9.76%, disability 6.50%, accident 1.67%), labor fund (1.00%), and the Employee Capital Plans (PPK) (1.5%), with some contributions being optional. Employers are also responsible for withholding and remitting income tax, which is progressive: 12% for income up to 120,000 PLN and 32% for amounts exceeding this threshold.

Key data points include:

Employers must remit withheld income tax by the 20th of the following month, pay social security contributions by the 15th, and file annual reports (PIT-4R by Jan 31, and PIT-11 to employees by end of Feb). For foreign entities, considerations include tax residency rules, double tax treaties, and VAT registration requirements, especially if operating through a permanent establishment or providing goods/services in Poland. Employee deductions include social security contributions, child relief (up to 2,224.08 PLN per child), and allowable expenses, reducing taxable income.

Poland's salary landscape in 2025 is shaped by economic growth, labor law updates, and high demand for skilled professionals, especially in IT, finance, and healthcare. Salary levels vary significantly by industry and role, with IT roles like Software Engineers earning between PLN 120,000 and PLN 200,000 annually, and Medical Doctors earning up to PLN 300,000. Other key roles include Data Scientists (PLN 140,000–220,000) and Marketing Managers (PLN 100,000–180,000). Location also influences pay, with major cities commanding higher salaries.

Employers must comply with minimum wage regulations, which are set at PLN 4,300 gross monthly and PLN 28.10 hourly in 2025. Compensation packages often include bonuses such as annual performance bonuses, holiday ("thirteenth month") pay, Christmas bonuses, and benefits like private healthcare, life insurance, meal vouchers, transportation, and remote work allowances. The typical payroll cycle is monthly, with payments made via bank transfer and detailed payslips required. Salary trends indicate ongoing increases driven by economic growth, inflation, skills shortages, and remote work expansion, emphasizing the importance for employers to stay competitive in attracting top talent.

Poland's labor laws guarantee employees various leave types, including paid annual vacation, public holidays, sick leave, parental leave, and other personal leaves. Annual vacation entitlement depends on employment duration: at least 20 days for under 10 years of service and 26 days for over 10 years, with unused leave transferable until September 30th of the following year. Public holidays are observed on specific dates, with employees entitled to paid days off, except when holidays fall on Sundays.

Employees are entitled to paid sick leave up to 33 days annually (14 days for those over 50), compensated at 80% of salary, with longer benefits available through the Social Insurance Institution. Parental leave includes maternity (20-37 weeks depending on children), paternity (2 weeks), parental (41-43 weeks), and childcare leave (up to 36 months unpaid). Additional leaves include bereavement, marriage, study, unpaid, care, and force majeure leave, with specific durations and conditions.

Poland's employment law mandates core benefits such as paid annual leave (20-26 days depending on tenure), public holidays, paid sick leave (80% salary for the first 33 days), maternity/paternity/parental leave, social security contributions, and health insurance via the National Health Fund (NFZ). Employers must contribute to social security covering retirement, disability, sickness, and healthcare.

In addition to mandatory benefits, many employers enhance packages with private healthcare, life insurance, sports memberships, meal vouchers, training, stock options, and company cars. Private healthcare, often subsidized by employers, offers faster access to medical services and is highly valued.

Retirement benefits include mandatory social security (ZUS), voluntary Employee Capital Plans (PPK) with employer and employee contributions, and voluntary savings accounts (IKE, IKZE). Benefit packages vary by industry and company size, with large firms offering comprehensive perks and SMEs typically providing basic mandatory benefits plus select extras.

Employment agreements in Poland are essential for defining employer-employee relationships, emphasizing written contracts to ensure clarity, fairness, and legal compliance. Polish labor law recognizes various contract types, each impacting job security, termination rights, and obligations.

Key contract types include:

Employers should carefully select the appropriate contract type based on employment needs, considering factors like job security, employee rights, and legal obligations. Ensuring compliance with Polish labor law is crucial for avoiding legal issues and fostering positive employment relations.

Remote work in Poland is governed by the Labor Code, which defines remote work as performed at a designated location, including home, using electronic communication. Employees can request remote arrangements, especially those with specific needs, but employers may reject requests if infeasible. Employers are responsible for providing necessary equipment, ensuring safety, and formalizing remote work terms in written agreements covering working hours, communication, and data security.

Key flexible work options include flexible hours, remote work, and hybrid models. Data protection under GDPR requires robust security protocols, employee training, data processing agreements, and monitoring. Employers typically provide equipment and may reimburse expenses like internet and electricity, with attention to tax implications. A reliable technological infrastructure—high-speed internet, communication tools, cybersecurity, and technical support—is vital for effective remote work.

In Poland, employee termination must follow strict legal procedures, including adherence to notice periods based on tenure: 2 weeks for less than 6 months, 1 month for 6 months to under 3 years, and 3 months for 3 or more years. Employers can terminate with notice for reasons such as organizational changes, economic factors, performance issues, or misconduct, while summary dismissal is reserved for gross misconduct, serious breaches, or prolonged absences. Proper documentation, written notices, and consultation with trade unions are mandatory, and employees have the right to challenge unjustified dismissals in labor courts.

Severance pay is generally due when employees are terminated for employer-related reasons after at least two years of service, calculated as follows:

Employees are protected against wrongful dismissal, discrimination, and termination of protected categories like pregnant women or employees on sick leave. If a termination is deemed unlawful, courts may order reinstatement or compensation.

Poland's economy is increasingly supported by independent professionals and freelancers, reflecting a global shift towards flexible work arrangements. This trend is driven by individuals' preference for autonomy and businesses' need for specialized skills without the overhead of traditional employment. Employers must navigate Polish labor laws to avoid misclassification risks between employees and contractors. Key legal distinctions include subordination, designated work time and place, personal performance, risk bearing, remuneration structure, and organizational integration. Misclassification can lead to significant financial and legal consequences.

Independent contractors in Poland typically operate under civil law contracts, such as the "umowa zlecenia" (Contract of Mandate) and "umowa o dzieło" (Specific Task Contract). These contracts must clearly define the scope of work, duration, remuneration, termination conditions, confidentiality, intellectual property rights, liability, and governing law. Intellectual property rights generally remain with the contractor unless explicitly transferred in writing. Contractors are responsible for their own tax and social security obligations, with several taxation options available, including general rules, flat tax, and lump sum on registered revenue.

Common industries utilizing independent contractors include IT, creative services, consulting, professional services, construction, and education. These sectors value the expertise, project-based work, and flexibility that independent contractors offer. Compliance with local regulations and proper contract structuring are essential for businesses engaging with independent talent in Poland.

Poland's work permit system differentiates between EU/EEA/Switzerland citizens and non-EU nationals. Citizens of EU/EEA countries and Switzerland can work freely without permits, while non-EU citizens generally need a visa and a work permit for legal employment. The process involves employer sponsorship, proper documentation, and compliance with immigration laws.

Key visa types for foreign workers include:

Employers must sponsor non-EU workers and ensure all legal requirements are met, including documentation and adherence to immigration laws. The process can be complex, but understanding these categories and obligations is essential for legal employment and potential pathways to permanent residency.