How to Hire Remote Employees In 

Poland

The Basics

Currency
Polish Zloty (PLN)
Employer Taxes
19.48% - 22.14%
Payroll Frequency
Monthly
Official Language
Polish

Employment in 

Poland

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 

Poland

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Poland can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Poland, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Poland.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Poland is not the same as paying workers in your own country. Employees have to be paid using Poland's employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Poland

 Specific Information

Working Hours

Full time employment is considered 8 hours per day and 40 hours per week.

Overtime

Hours worked above 8 hours per day and 40 per week are considered overtime. Weekly working hours including overtime cannot exceed 48 hours. Annual overtime cannot exceed 150 hours.

Employees will be compensated for overtime as follows:

200% for overtime work performed:

  • at night.
  • on Sundays and holidays other than the employee’s working days.
  • on a non-working day granted to an employee in exchange for work performed on a Saturday or a holiday.

150% for overtime work performed:

  • on any day other than those referred to in subsection.

Instead of paying for overtime employers may grant the employee time off work.

Payroll Tax

Employer

Employer Contributions

  • Retirement Pension
  • Pension
  • Disability
  • Labor fund
  • Guarantee Employee Benefits Fund

Employee Income Tax

  • Up to 85,528 PLN - 17%
  • Over 85,528 PLN  - 32%


Minimum Wage

The current minimum wage is 2,800 PLN.

Payroll

Pay Cycle

Salaries are paid on monthly basis and employees must receive their salary no later the 10th of the following month.

13th Salary

Not required.

Leave

Paid Time Off (PTO)

A full-time employee is entitled to 20 days of paid annual leave per year if employed with the same employer for less than ten years.

An employee is entitled to 26 days of paid annual leave once they have been in the same employment for more than ten years.  

Unused annual leave days can be transferred to the following year but must be taken by September 30 of the following year. It is forbidden to pay employees for not taking their leave, except upon termination of employment.

Public Holidays

13 public holidays.  

Sick Days

Sick leave pay varies based:

  • For employees that are 50 years of age or less – up to 33 days in a calendar year paid by the employer
  • From the 34th day onward, sick leave is paid by the Social Security Office (ZUS)
  • For employees that are 50 years of age or above – up to 14 days in a calendar year paid by the employer
  • From the 15th day onward, sick leave is paid by the Social Security Office (ZUS)
  • Sick leave is paid at 80% of the allowance basis or 100% of the allowance basis if the illness occurs during pregnancy or if it was caused by the accident on the way to or from work.
  • Sick leave caused by the accident at work or due to the employee’s sick child or another sick relative is financed by ZUS.

Maternity Leave

Mothers are entitled to 20 weeks of maternity leave and can take up to 6 weeks prior to giving birth. Mothers are entitled to maternity leave regardless of the length of service with the current employer.

In addition, parents are entitled to 32 weeks of parental leave that can be granted to any of the parents. The leaves are at a rate of 100% for the first 26 weeks and at a 60%rate for the remaining weeks paid by the Social Security Institution (ZUS).

Employees that use both maternity leave and parental leave will receive an 80% allowance for the entire leave.

Paternity Leave

Parents are entitled to 36 months of unpaid leave until the child reaches the age of 6.

Parental Leave

Child leave – 2 days or 16 hours to take care of a child that is 14 years old or less.

2 days leave for: employee’s child’s birth.

1 day leave for: employee’s child’s wedding.

Other Leave

Disability Leave: A person classified as having a severe or moderate degree of disability is entitled to an additional ten days of annual leave.

Military Leave: Employees are entitled to unpaid military leave to perform their duties.  

Marriage Leave

The employee is entitled to leave of 1 day for the marriage of his or her child.

Bereavement Leave

The employee is entitled to leave of 1 day for the death and funeral of his or her sister, brother, mother-in-law, father-in-law, grandmother, grandfather or any other person supported or directly care for by the employee.

Termination

Termination Process

Employment can be terminated by:

  • Mutual agreement
  • a ‘statement of will’ of one of the parties with a period of notice (termination of a contract of employment with notice)expiry of the contract term
  • The employment contract may be terminated by mutual consent at any time

Notice Period

Notice during the probation period:

3 working days’ notice – if the probationary period is up to 2 weeks;

1-week notice – if the probationary period exceeds 2 weeks;

2 weeks’ notice – if the probationary period exceeds 3 months;

Notice for Temporary or Permanent employment:

2 weeks – if the employee was employed for up to 6 months;

1 month – if the employee was employed more than 6 months and less than 3 years;

3 months – if the employee was employed for 3 years or more.

Severance Pay

Severance Pay Severance payment is given by employers who have at least 20 employees and the dismissal of the employee is through the fault of the employer.

1-month severance pay – less than 2 years of employment.

2 months’ severance pay – between 2 and 8 years of employment.

3 months’ severance pay – over 8 years of employment

Probation Period

No longer than 3 months.