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Minimum wage in Poland
Payroll in Poland
Statutory benefits in Poland
Other employee benefits in Poland
Compliant, seamless payroll and benefits in Poland and beyond
Payroll and benefits in Poland
Payroll in Poland is subject to specific rules, requirements, and processes. If you want to hire employees in Poland, you’ll need to have a good idea of how it works so you don’t put your business at risk.
Of course, you could choose to outsource your payroll by working with a payroll provider in Poland. However, it’s still a good idea to have a fundamental understanding of how payroll works in this country, so you can ensure the provider you choose will be able to meet your needs.
In this guide, we’ll cover the minimum wage in Poland and the crucial elements of the payroll process. We’ll also talk about the statutory benefits you need to provide to your Polish employees by law, as well as additional benefits you could choose to offer to attract the best talent. Read on for everything you need to know about payroll in Poland.
Minimum wage in Poland
According to the Polish Labour Code, employers in Poland have to pay their employees at least the minimum wage. This is a national standard in Poland and is the same across all industries, sectors, regions, and professional groups. The minimum wage is the amount that employers have to pay before tax, and it’s evaluated by the government every year.
In Poland, the minimum wage is a fixed monthly rate, which can be converted to a minimum hourly wage for part-time workers. As of 1 July 2024, the minimum wage in Poland per month is 4,300 PLN (around EUR 1000) before tax. Since the standard working hours in Poland are 40 hours per week, that amounts to:
- 992 PLN per week
- 24.8 PLN per hour
- 51,600 PLN per year
What counts towards minimum wage in Poland?
Only certain parts of an employee’s compensation count towards minimum wage in Poland. This includes all components that are counted as personal remuneration, such as base pay, bonuses, and awards.
The minimum wage does not include:
- Anniversary awards
- Retirement benefits
- Overtime pay
- Supplements for night work
- Seniority allowances
- Special working conditions allowances
Seniority allowance and special working conditions allowance in Poland
In Poland, employees are entitled to an additional payment in recognition of their length of service with an employer. As of 2020, this no longer counts towards the minimum wage. That means you need to pay your Polish employees at least the minimum wage of 4,300 PLN per month, plus their seniority allowance if they are entitled to one.
Some employees in Poland are also entitled to a special working conditions allowance. This is an additional payment made to employees who work under conditions that are particularly arduous or dangerous. Again, this doesn’t count towards minimum wage calculations.
Minimum wage in Poland after tax
Wages in Poland are subject to taxes and charges. The minimum monthly wage of 4,300 PLN is the amount that employees must receive before these are deducted. A worker earning the minimum wage in Poland in 2024 would take home 35,178.33 PLN (around EUR 8,200) per year after taxes and other deductions.
Payroll in Poland
Businesses hiring in Poland need to understand the particularities of Polish payroll so they can ensure their operations are fair and compliant. In this Poland payroll guide, we’ll take you through some of the most important things you need to know to run payroll in Poland.
Payroll cycle in Poland
The payroll cycle in Poland is monthly, and employees must be paid no later than the 10th of the following month. The Polish fiscal year runs from 1 January through to 31 December.
Payroll taxes in Poland
Employers in Poland must deduct personal income taxes from their employees’ salaries and remit the correct amount to the Polish tax authorities. Poland uses a simple tax system, with just two rates: 18% for income up to 85,582 PLN (about EUR 20,000), and 32% for earnings over this amount. Unlike in some other countries, tax is not spread out throughout the year but is paid on a cumulative basis. That means that higher earners will only pay 18% in the early months of the year, but will receive less take-home pay after they have reached the upper threshold of 85,582 PLN.
Employers in Poland have to file two forms at the end of each tax year. The first is Form PIT-4R, which shows the total amount of personal income tax they have collected and paid to the tax office throughout the year. The second is Form PIT-11, which details individual pay, taxes, and social security deductions for each employee. Employers must send this form to the tax office and give a copy to each employee.
Social security contributions in Poland
Social security contributions are an important part of running payroll in Poland. This is managed by the Social Insurance Institution (Zaklad Ubezpieczen Spolecznych, or ZUS). Both employers and employees make contributions to the social security system, and employers must deduct employee contributions from their wages. Contributions are made up of several elements, which must all be individually calculated and detailed on the employee’s payslip. They are:
- Pension insurance
- Disability insurance
- Accident insurance
- Labour fund
- Sickness insurance
In total, employer contributions to social security in Poland amount to between 19.21% and 22.4% of the employee’s earnings, and employee contributions add up to 13.71%. There is a maximum annual earnings threshold that applies to both employee and employer contributions, which is set at 30 times the national average wage.
13th salary in Poland
Unlike in some other European countries, there is no legal requirement for the 13th salary payment for private sector employees in Poland. However, it may be required for some public sector jobs including civil servants and teachers.
Statutory benefits in Poland
Statutory benefits are benefits that employers are legally required to provide to their employees. They’re different in every country. In Poland, many statutory benefits, including things like unemployment insurance and disability insurance, are handled by the country’s social security system, which both employers and employees pay into. Below, we’ll discuss some of the most important statutory benefits that employees in Poland are entitled to.
Employee Capital Plans in Poland
From 2019, employers in Poland are required to enrol their employees into an Employee Capital Plan (PPK). This is a long-term savings plan that helps employees to put money aside for the future. Employers need to enrol all employees between the ages of 18 and 55 into a PPK. Once they’re enrolled, the employer, the employee, and the state all contribute to the plan. Employees can choose to opt out of the plan if they want to, but employers can’t force their employees to opt out.
Sick leave and pay in Poland
When employees need to take time off work due to illness in Poland, they are entitled to sick leave. The first 33 days of sick leave are called typical sick leave and are paid by the employer at 80% of the employer’s normal wages. Employees are also entitled to up to 182 days of long-term sick leave, during which they can claim sickness benefits from the government.
Minimum wage and overtime in Poland
Employees in Poland are entitled to receive at least the monthly minimum wage of 4,300 PLN per month. They are also entitled to overtime pay if they work more than 40 hours per week. There are set rules for the amount of overtime pay employers have to pay, as well as limits on how much overtime employees can work per week and per year.
Paid annual leave in Poland
In Poland, full-time employees are entitled to at least 20 days of paid holiday per year. Employees who have worked for the same employer for more than 10 years are entitled to 26 days’ holiday. There are also 13 statutory public holidays per year in Poland, which employees are entitled to take as paid time off.
Maternity and parental leave in Poland
Employees in Poland are entitled to leave when they or their partner have a baby. Female employees who give birth are entitled to 20 weeks of maternity leave, six weeks of which can be taken before their due date. The partners of birthing parents are also entitled to parental leave.
Other employee benefits in Poland
Employers in Poland can choose to provide their employees with other benefits, in addition to those that are mandated by law. Below, we’ll talk about some of the most common optional employee benefits in Poland.
Private health insurance
Employees in Poland have access to basic healthcare through the social security system. However, many employers choose to provide private health insurance as an additional benefit. Private health insurance might include things like dental and optical coverage.
Bonuses
Some companies in Poland choose to give their employees an annual bonus in recognition of their achievements. This is usually delivered at the end of the year, although there is no legal requirement for this in Poland as there is in some other countries.
Life insurance
Life insurance is also a popular employee benefit in Poland. This helps to reassure employees that their families will be looked after in the event of their death. Life insurance packages in Poland often also include disability insurance, which provides workers with funds if they are no longer able to work due to an injury or long-term illness.
Flexible working
As in many other countries, employees in Poland are more and more interested in adapting their work to suit their lifestyle. That means that flexible work can be a valuable employee benefit in Poland. Giving employees freedom to choose how, when and where they work can improve your employer value proposition and help you to attract top talent.
Transport costs
Some companies in Poland choose to reimburse employees for the cost of coming to work. For example, they may pay them back for the cost of taking public transport or give them a mileage allowance if they commute using their own vehicle.
Business travel insurance
Under Polish law, employers have to cover the costs of any medical treatments that employees require while travelling abroad for work. Many employers therefore choose to offer their employees business travel insurance, which is often the cheaper option for the company.
Additional leave
Many employers in Poland choose to offer their employees extra annual leave in addition to their statutory entitlement. This allows employees to improve their work-life balance and can be a valuable benefit. You could choose to give all employees a higher holiday allowance or to award extra holiday days for each year of service.
Training and development benefits
Employee benefits related to training and development are also common in Poland. For example, you might choose to provide each employee with a personal development budget, which they can use to pay for training of their choosing. This helps employees to develop their skills and could even help them advance in their professional journey.
Compliant, seamless payroll and benefits in Poland and beyond
Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.
Thankfully, we know what we’re doing. When you work with CXC to engage workers in Poland, we’ll handle everything from tax withholding to employee bonuses on your behalf.
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