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Our staff are experts in fields ranging from operations, payroll, accounting, and more. Learn what you need to expand your business and hire staff in Poland.
Photo Credit: Mihaela Holhos
Poland, officially called Republic of Poland is one of the largest countries in Central Europe with a total territory (comprising land area, internal waters and territorial sea) of 322,575 square kilometers. Poland has become one of the fastest-growing economies in Europe.
Employees can be majorly divided into two categories – Contractors and Employees and defining relation with the employee is very important to avoid risks associated with misclassification.
The courts in India have applied the control and integration test to determine whether a person can be classified as an employee or independent contractor. The prima facie test is the control test to determine whether an employer-employee relationship exists and it is not merely to direct the nature of work that has to be carried out but also to control the manner in which it is done.
Another difference between an employer and contractors is an employer is required to withhold tax at the time of payment of salary to employees. The salary paid to an employee may include benefits and allowances that the employee is entitled to, which is beneficial to the employee from a tax perspective. However, with respect to independent contractors, the employer must withhold the applicable taxes; however, the amount paid may not be in the form of salary, but as professional fees for services performed. In both these cases, the employee and independent contractor/s will be required to file their income tax returns as prescribed under law.
Salaries are paid on monthly basis and employees must receive their salary no later than the 10th of the following month.
Date | Holiday |
January 1 | New Year’s Day |
January 6 | Epiphany |
Sunday in Spring (movable) | Easter Sunday |
Monday following Easter Sunday | Easter Monday |
May 1 | May Day |
May 3 | Constitution Day |
7th Sunday after Easter | Pentecost Sunday |
9th Thursday after Easter | Corpus Christi |
August 15 | Assumption of the Blessed Virgin Mary |
November 1 | All Saints’ Day |
November 11 | Independence Day |
December 25 | Christmas Day |
December 26 | Second Day of Christmas |
The following are national and state holidays in Poland, although they are normally working days unless declared a public holiday:
Date | Holiday |
February 19th | Polish Science Day |
March 1st | National “cursed soldiers” Remembrance Day |
March 24th | National Day for the Remembrance of Poles Rescuing Jews under Nazi German occupation. |
April 14th | Baptism of Poland Day |
May 1st | Labour Day |
May 3rd | Constitution Day |
May 8th | Victory Day |
July 12th | Day of Struggle and Martyrdom of the Polish Villages |
August 1st | National Warsaw Uprising Rememberance Day |
August 31st | Day of Solidarity and Freedom |
October 19th | National Day of Remembrance for Steadfast Clergy |
December 27th | Poznań uprising Remebrence Day |
As mentioned by the Labor Law of Poland, the social insurance contributions consist of pension, disability, accident and sickness insurance and is mandatory and payable by employers.
The provisions of the labour law may require the employer to also grant the employee other work-related benefits (for example: retirement benefit, survivor’s allowance).
The social security contribution calculation is as follows:
| Contribution | Contribution amount |
| Pensions and disability insurance | 16.26% of total gross salary (up to the cap of PLN 177,660 in 2022) OR 11.26% of total gross salary (up to the cap of PLN 177,660 in 2022) |
| Sickness insurance | 2.45% of total gross salary |
| Accident insurance | 1.67% of total gross salary for employers that employ up to nine employees. 0.67% to 3.33% of total gross salary for employers that employ more than nine employees (the precise rate depends on the business sector). In practice, a flat rate of 1.67% is applied in respect of foreign employers. |
| Labour Fund | 2.45% of total gross salary |
| Employee Guaranteed Benefits Fund | 0.10% of total gross salary |
In 2022, there were significant changes in the tax-free amount and in taxes.
The tax-free amount has been increased to 30,000 PLN year (6,600 Euro per year), for every income and is deducted from salary every month
The termination process can be complex in Poland and The notice, i.e. declaration of intent to terminate the contract of employment (both by the employee and the employer) should be submitted in writing.
The length of the notice period for contracts for an indefinite period and fixed-term contracts depends on the period of employment by the employer concerned.
The notice period amounts to:
2 weeks if the employee has been employed for less than 6 months,
1 month if the employee has been employed for at least 6 months,
3 months if the employee has been employed for at least 3 years.
Source: Employee Termination
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