Country Spotlight: Payroll in Poland

Poland is one of Europe’s key economies, supported by a diversified industrial base that includes food and beverage, chemicals and pharmaceuticals, automotive, non-metallic minerals, iron and steel, and information and communications technology. Strategically located in Europe and bordering Germany, Russia, Lithuania, Ukraine, Slovakia, the Czech Republic, and Belarus, Poland offers a well-regulated employment environment for businesses expanding into the region. 

For organizations planning to hire or operate in Poland, understanding the country’s payroll framework, including statutory payroll contributions, income tax obligations, working time regulations, leave entitlements, and termination rules, is essential for maintaining compliance, building workforce trust, and minimizing regulatory and financial exposure. The fiscal year runs from 1 January to 31 December, the official language is Polish, and the currency is the Polish Zloty PLN. 

Workweek and Payroll Practices

In Poland, salaries are paid monthly, with employees receiving their remuneration no later than the 10th day of the following month. There is no legal requirement to pay 13th- or 14th-month salaries, allowing employers to structure compensation plans within statutory limits.  

Working time regulations clearly define overtime thresholds. Overtime is considered any work exceeding 8 hours per day and 40 hours per week. Total working hours, including overtime, must not exceed 48 hours per week, and annual overtime is generally limited to 150 hours, subject to applicable regulatory provisions.

Employees are entitled to enhanced compensation for overtime. Work performed at night, on Sundays, holidays, or on non-working days granted in exchange for work on Saturdays or holidays is compensated by an additional remuneration in the amount of 100% of the regular rate.  Additional overtime performed on other days is compensated at 150% of the regular rate. Employers may grant time off in lieu of overtime pay, subject to statutory requirements.  

Payroll Structure in Poland

Payroll in Poland operates within a defined statutory contribution framework that applies to both employees and employers. Payroll taxes are mandatory and designed to fund retirement, pension, and health insurance systems, as well as other social protections. Accurate calculation and timely remittance of these contributions are critical to maintaining compliance with Polish tax and labor legislation.

Employee payroll contributions include 9.76 percent toward retirement, 1.50 percent toward pension, 2.45 percent toward sickness insurance, and 9.00 percent toward health insurance, for a total employee contribution rate of 22.71 percent.

For income earned in 2024, the individual income tax rate is 12 percent on income up to PLN 120,000. Income above PLN 120,000 is subject to a PLN 10,800 flat rate plus 32 percent.

Employer contributions include 9.76 percent for retirement pensions, 6.50 percent for pensions, disability contributions ranging from 0.67 percent to 3.33 percent, 2.45 percent to the Labor Fund, and 0.10 percent to the Guaranteed Employee Benefits Fund. The total employment cost ranges between 19.48 percent and 22.14 percent.

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Hiring, Onboarding, and HR Practices

Polish labor law emphasizes equal treatment in employment relationships, including hiring, promotion, and termination, regardless of personal characteristics or employment type. Employers must adhere strictly to these principles to avoid liability.

During onboarding, employers must collect specified categories of employee data, including identification details, education, employment history, national identification or PESEL number, bank details, and, for foreign employees, relevant documentation such as work permits and medical certificates, where applicable. Employment contracts may include a probationary period of up to three months in accordance with statutory provisions.

Polish regulations also establish clear data retention obligations. Payroll records must be retained for defined minimum periods depending on the employee’s start date, and tax documentation must be maintained for five years from the end of the calendar year in which the tax payment was due. Failure to maintain proper records may result in financial penalties.

Leave and Statutory Benefits

Poland provides 13 mandatory public holidays each year.

Employees are entitled to 20 days of annual leave if they have fewer than 10 years of service, and 26 days if they have at least 10 years of service. Unused leave may be carried forward but should be used by September 30 of the following year. Cash payment in place of leave is not permitted. 

Sick leave entitlements vary by age group. For employees under 50 years of age, the employer pays for up to 33 days per calendar year; after that, the Social Security Office ZUS assumes responsibility for payment. For employees aged 50 and above, the employer pays for up to 14 days, with ZUS covering subsequent days.

Mothers are entitled to 20 weeks of maternity leave for the birth or adoption of one child, with extended durations for multiple births. Parents are also entitled to parental leave, with benefits administered through the Social Security Institution ZUS in accordance with statutory percentages. Fathers are entitled to two weeks of paid paternity leave. In addition, Polish law provides several other statutory leave categories, including care leave, childcare leave, special event leave, training leave, and leave on demand, each governed by defined provisions of the labor code. 

Termination and Compliance

Notice periods in Poland vary depending on the employee’s total length of service. Employees with less than six months of service are subject to a two-week notice period. Those employed for at least six months but less than three years are entitled to one month’s notice. Employees with at least three years of service are entitled to three months’ notice. 

Termination without notice is permitted in defined circumstances, including serious violation of employment duties or loss of a required license. For indefinite employment contracts, termination must be sufficiently justified and documented in writing.   

Payroll for Foreign Employees in Poland

Non-EU residents who wish to work in Poland must obtain a valid work permit before commencing employment. Work permits are specific to the job at the time of application and are generally valid for up to three years.

Poland recognizes five types of work permits, Type A, B, C, D, and E, each applicable to different employment arrangements, including local employment contracts, board roles, assignments to subsidiaries, export services, or other specified work activities. Employers must ensure that immigration status and employment authorization are properly aligned prior to payroll processing, as lawful work authorization is a prerequisite for compliant employment.

Conclusion

Poland offers a stable, well-regulated employment framework, supported by defined payroll contributions, structured income tax brackets, statutory leave entitlements, regulated working-time provisions, and formal termination requirements. For organizations operating in Poland, payroll accuracy, timely statutory remittance, proper record retention, and strict adherence to labor legislation are essential to maintaining compliance and supporting sustainable workforce operations.

Why choose Neeyamo for payroll in Poland? 

Neeyamo supports organizations in managing payroll in Poland with a unified global payroll platform that addresses statutory contributions, tax obligations, compliance requirements, and employment regulations. By combining local regulatory expertise with global delivery capabilities, Neeyamo enables businesses to manage payroll in Poland efficiently, compliantly, and at scale, supporting expansion while minimizing operational and regulatory risk. 

Talk to our country payroll expert at irene.jones@neeyamo.com or explore Neeyamo's Global Payroll Solution.