Poland Payroll Guide
HR & Payroll in Poland
Good to know
- Local currency: Polish złoty (PLN)
- Minimum wage: 4 300 PLN/ month. Average Salary: 8038,41 PLN/month
- Tax Year: 1st January – 31st December
- Legal Working Hours: 40 hours/week
About Poland
Poland is the largest of the East European countries which joined the EU in May 2004. With a population of approximately 39 million, it is ranked among the most influential and remarkable countries in central and Eastern Europe. Poland is a stable democracy with a truly fascinating history, great cultural heritage and several areas of outstanding natural beauty.
A destination known as one of the fastest-growing economies worldwide pre-crisis and has been the fastest-growing economy in post-crisis Europe. Strong macroeconomic foundations, stable domestic demand, agile fiscal policy and favourable business environment has made Poland the better place for investors.
Poland has been perceived as the new Europe’s growth engine and natural leader of Central Eastern Europe (CEE).
Social Cover in Poland
Compulsory contributions in Poland are:
Maternity
Invalidity and death insurance (the annual ceiling is set at 30 times the monthly national salary)
Old-age insurance
Occupational accident insurance and occupational diseases (the contributions of the employers vary according to the risks of accidents at work)
Unemployment insurance and employment guarantee funds
The rates of employee contributions are not the same for the self-employed. The field of agriculture is subject to specific contributions. Wage contributions are paid to the Social Insurance Institution: Zakład Ubezpieczeń Społecznych (ZUS).
Social Contributions in Poland
The table below shows the contribution percentages for salaried employees.
| Contributions | Employer’s share | Employee’s share |
|---|---|---|
| Sickness-maternity | 11,45 % (1) | – |
| Disability and death (2) | 1,50 % | 6,50 % |
| Old age (2) | 9,76 % | 9,76 % |
| Accidents at work and occupational diseases | Between 0,40 % and 8,12 % (3) | |
| Unemployment insurance | – | 2,45% (4) |
| Employee Guarantee Fund | – | 0,10 % |
- (1) 2.45% of the contribution is used to finance cash benefits and 9% to finance health care.
- (2) The annual ceiling is set at 30 times the average monthly national wage, i.e. 157,770 PLN.
- (3) The employer’s contribution to the accidents at work and occupational diseases varies according to the risks of the company’s activities. Companies with less than 10 employees contribute 1.6%.
- (4) Contribution deducted from a salary at least equal to the national minimum wage.
Note: Companies with 25 or more employees that have fewer than 6% disabled employees in their workforce are required to pay a tax to the State Fund for Rehabilitation of Disabled People (PFRON).
Source: The Cleiss
Tax at source
In Poland, all residents or expatriates with economic interests who have been living in Poland for more than 183 days during the tax year are subject to the Polish tax system. The progressive income tax rate is capped as follows:
18% for wages of less than 85 528 zlotys a year, less the tax-reducing amount of PLN 556.02
For wages of more than PLN 85 528 , 15,395 zlotys + 32% of the income exceeding 85,528 Zlotys.
For the employees, the employer makes a monthly tax on the IRPP of their due, and thus a simple regularization of the amounts is carried out at the end of the year. All types of income are taxable like wages, bonuses, income from goods etc.
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Payroll and HR are different in each country and to each business. Trust one of our local experts to Poland.
Our Payroll and HR services in Poland
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
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