Poland has a lot of potential employees due to its good universities and dual education. There are about 16.8 million employed people, the unemployment rate is around 5%. The demand for well-trained specialists is high, and some industries suffer from a shortage of skilled workers. There are also regional differences.
Therefore, many Polish companies use personnel service providers for their recruitment. The search sometimes takes longer than two to three months, so plan enough time for it. Suitable candidates should be offered a job quickly, otherwise, there is a risk that they will have already decided on another job.
What are the labor laws in Poland?
Primarily, the Labor Code (ArbGB) regulates Polish labor law. There are also other laws and regulations with additional provisions, and collective bargaining agreements as well as company agreements are also considered components of labor law.
Employment contracts should be concluded in writing, otherwise the terms and conditions must be confirmed in writing no later than the day the employee starts work.
In Poland, there are three different types of employment contracts:
- Probationary employment contract
- Fixed-term employment contract
- Permanent employment contract
The probationary employment contract may only be limited for a period of three months, after which a regular fixed-term or permanent employment relationship may be entered into. Otherwise, the contract ends automatically after three months.
Fixed-term employment contracts can be limited to a maximum of 33 months and can be extended a maximum of three times. A fixed-term employment contract is concluded again for this purpose.
The notice periods are the same for fixed-term and permanent contracts; in both cases they depend on the length of employment. For employment of less than six months, the notice period is two weeks; after six months or more, it is one month; after three years or more, it is three months.
The minimum leave guaranteed by law is 20 days per year, an employee acquires 1/12 of his annual leave entitlement per month. This increases to 26 days once an employee has been employed for more than 10 years.
In Poland, working hours are 8 hours per day or an average of 40 hours per week in a five-day workweek. The number of overtime hours may not exceed 150 hours in a calendar year. However, this regulation can be modified by a company regulation or even the employment contract.
Payroll in Poland
In order to make the payroll, the employer needs the following documents from the employees: pension details, qualifications, NIP number (tax identification number), and postal address. There is a minimum wage in Poland, currently it is PLN 3,010 per month and PLN 19.70 per hour (as of February 2022). It can also be higher due to existing collective agreements. There are 13 public holidays in Poland.
Employers have to pay 19 percent corporate income tax and 23 percent value-added tax. For employees, the amount of tax payable depends on income: for income up to PLN 120,000, 12% is payable; above this amount, the excess is taxed at PLN 10,800 plus the tax rate of 32%. The annual tax allowance is PLN 30,000.
Social expenses were borne by both the employer and the employee. A little over 9% is deducted from the employee’s salary for retirement benefits, as well as other amounts for health insurance, coverage in case of illness, and the disability fund. The employer contributes the same percentages to the retirement plan and the disability fund, and also pays for accident insurance and the insolvency and severance fund.
What else must be considered in the payroll?
In the event of illness or injury, employees are entitled to continued pay at the rate of 80%. The continued payment of wages is calculated from the last 12 months before the inability to work. You must submit a medical certificate for this purpose. The employer pays for the first 33 days – 14 days for employees over 50 – and then the social insurance fund. The entitlement to continued payment of wages from the social insurance fund continues until the end of the 6th month of illness at the latest.
Parents are entitled to various benefits in connection with the birth: Maternity benefit and maternity leave, parental benefit and parental leave, paternity benefit and paternity leave.
Maternity benefits and maternity leave are granted to the mother, but she can transfer part of them to the father, as long as she takes most of them herself. Female employees can take up to 20 weeks of maternity leave (in the case of multiples, this period is extended, depending on the number of children born), although this can begin no earlier than six weeks before the expected date of birth. Maternity benefit is 100 percent of the employee’s salary.
Receipt of parental allowance and parental leave can begin after maternity leave ends. It is granted to both parents in a maximum of four parts. The leave can be taken at the same time or alternately, and it is also possible to work a maximum of half-time during it. It is 32 weeks in the case of a single birth. Parental allowance is 100 percent of wages for the first 6 weeks and then 60 percent for the rest of the time.
Paternity allowance and paternity leave of two weeks are due to the father of the child and are independent of maternity leave. During this time, the father receives full salary from the Polish social security system.
If you have any questions about Human Resources and payroll in Poland or need assistance with it, please feel free to contact us.
