General Questions
Yes, you can hire employees in Poland without establishing a local entity. The main options include using an Employer of Record (EOR), hiring contractors through B2B contracts, or engaging IT contractors via outsourcing firms.
- Employment contracts (umowa o pracę) – A formal agreement providing full employee rights, social security benefits, and labor law protections.
- B2B contracts (umowa B2B) – A service contract between a company and a self-employed individual (sole proprietor). The contractor is responsible for taxes and social contributions.
- IT contracting – Often involves B2B agreements or outsourcing through third-party vendors, allowing companies to hire IT specialists without direct employment obligations.
IT contracting allows companies to engage professionals through outsourcing firms or B2B contracts. This avoids the need to establish a legal entity while benefiting from Poland’s skilled workforce. Many IT professionals prefer B2B contracts due to tax advantages and flexibility.
Employment & Contracts
- Permanent employment contract (umowa o pracę na czas nieokreślony) – Provides long-term job security and full employee rights.
- Fixed-term employment contract (umowa o pracę na czas określony) – Limited duration, with a maximum of three contracts totaling 33 months.
- Probationary contract (umowa na okres próbny) – Up to 3 months to assess the employee’s suitability.
- B2B contract (umowa B2B) – A business-to-business agreement for independent contractors.
| Feature | Employment Contract (Umowa o Pracę) | B2B Contract (Umowa B2B) |
|---|---|---|
| Tax & Social Security | Employer handles contributions | Contractor handles taxes |
| Employment Protections | Full labor law protections | No employment law protections |
| Benefits | Paid leave, healthcare, pension | No mandatory benefits |
| Work Relationship | Subordination to employer | Independent contractor |
| Flexibility | Less flexible | More flexible |
- social security contributions (pension, disability, healthcare, accident insurance)
- Paid annual leave (20 or 26 days, depending on work experience)
- Paid sick leave (first 33 days covered by employer, then by social security)
- Parental leave (20 weeks of maternity leave, 2 weeks of paternity leave)
- Minimum wage (adjusted annually)
Probation periods are not required but are commonly used. The maximum duration is 3 months.
Notice periods depend on the employee’s tenure:
- 0-6 months of service – 2 weeks
- 6 months – 3 years of service – 1 month
- More than 3 years of service – 3 months
For B2B contracts, notice periods are agreed upon individually.
- Standard workweek: 40 hours (8 hours/day, 5 days/week)
- Overtime: Maximum 150 hours per year (higher limits possible with agreements)
- Overtime pay:
- 50% extra for overtime hours
- 100% extra for night, weekend, and holiday work
As of 2023, remote work is legally regulated in Poland. Key rules include:
- Agreement required – Remote work must be agreed upon in the employment contract or via an employer’s policy.
- Employer obligations – Employers must provide necessary equipment or reimburse employees for work-related costs.
- Health & Safety – Employers must assess remote work conditions for safety compliance.
Payroll, Taxes & Social Security
Employers in Poland are required to contribute to the country’s social security system. The total employer contribution typically ranges between 19.48% and 22.14% of the employee’s gross salary. The breakdown is as follows:
| Contribution Type | Employer’s Rate (%) |
|---|---|
| Pension (emerytalne) | 9.76% |
| Disability (rentowe) | 6.50% |
| Accident (wypadkowe) | 0.67% – 3.33% |
| Labor Fund (FP) | 2.45% |
| Employee Guaranteed Fund (FGŚP) | 0.10% |
| Total | 19.48% – 22.14% |
Employees also contribute to social security, but their contributions are deducted from their salary.
Poland has a progressive income tax system, with two main tax brackets:
- 12% for income up to 120,000 PLN annually
- 32% for income above 120,000 PLN annually
Additionally, there is a tax-free allowance of 30,000 PLN, meaning employees only pay tax on earnings above this threshold. There is also a 9% health insurance contribution, which is partially non-deductible.
The total employer cost consists of the gross salary plus employer social security contributions.
For example, if an employee has a gross salary of 10,000 PLN, the total employer cost is:
- Employer social contributions (approx. 20%) → 2,000 PLN
- Total cost to employer → 12,000 PLN
Employees receive a net salary after income tax (12-32%), health insurance (9%), and employee social security contributions (13.71%) are deducted.
Yes, there are several tax incentives for employers:
- Lower social security contributions for new businesses – Startups may pay reduced ZUS (social security) for the first 2.5 years.
- R&D tax relief – Companies investing in R&D can deduct up to 200% of qualifying expenses.
- IP Box (Innovation Box) – A preferential 5% tax rate on income from intellectual property.
- Employment of disabled workers – Companies may receive subsidies for hiring disabled employees.
- Tax exemptions in Special Economic Zones (SEZs) – Businesses operating in SEZs can benefit from corporate tax exemptions.
Payroll in Poland involves several key steps:
- Salary Calculation – Gross salary minus taxes, social security, and other deductions.
- Tax & ZUS Filing – Employers must report employee salaries and remit taxes/social contributions monthly.
- Payment Processing – Employees typically receive their salaries by the 10th of the following month.
- Annual PIT Reporting – Employers provide a PIT-11 form summarizing income and tax paid, which employees use for filing tax returns.
Many companies use payroll providers or HR outsourcing firms to handle compliance and reporting requirements.
Leave & Benefits
Employees in Poland are entitled to paid annual leave (urlop wypoczynkowy) based on their total work experience:
- 20 days per year for employees with less than 10 years of work experience.
- 26 days per year for employees with at least 10 years of work experience.
Additional notes:
- Unused vacation days must be carried over to the next calendar year but should be used by September 30.
- Vacation entitlement also applies to part-time employees (proportionally).
Sick leave (L4) for employment contracts is covered as follows:
- First 33 days (14 days for employees over 50 years old) → Paid by the employer at 80% of salary (100% if illness is job-related or during pregnancy).
- From the 34th day onward → Paid by ZUS (Social Insurance Institution) at 80% of salary (100% in special cases).
Employees must provide a medical certificate (e-ZLA), which is sent electronically to ZUS and the employer.
Poland offers comprehensive parental leave benefits:
- Maternity leave (urlop macierzyński)
- 20 weeks (mandatory) for the mother.
- 100% of salary paid by ZUS.
- Paternity leave (urlop ojcowski)
- 2 weeks (can be used anytime within the child’s first 12 months).
- 100% of salary paid by ZUS.
- Parental leave (urlop rodzicielski)
- Up to 41 weeks (for one child) or 43 weeks (for multiple births).
- Can be shared between parents.
- Paid at 70% of salary if taken separately or 81.5% if combined with maternity leave.
- Additional unpaid parental leave
- Up to 36 months (until the child is 6 years old).
- No salary, but the employee retains job security.
Yes, mandatory benefits for employment contracts include:
- Social security coverage (pension, disability, accident, and health insurance).
- Paid vacation leave (20-26 days annually).
- Sick leave coverage (80-100% of salary).
- Maternity, paternity, and parental leave.
- Severance pay (for dismissals under certain conditions, like collective layoffs).
No, private healthcare and additional perks are not legally required, but they are commonly offered to attract talent, especially in industries like IT. Popular benefits include:
- Private healthcare (Medicover, LuxMed, etc.)
- Multisport cards (gym and fitness access)
- Life insurance
- Flexible working hours & remote work
- Training budgets & language courses
Termination & Compliance
Terminating an employee in Poland depends on the type of contract and reason for dismissal. The main options are:
- Termination by mutual agreement – The easiest and least risky option, where both parties agree to end the contract.
- Termination with notice (standard dismissal) – Requires a valid reason (e.g., performance issues, redundancy). Notice periods apply.
- Termination without notice (disciplinary dismissal) – Allowed only for serious misconduct (e.g., fraud, gross negligence).
Notice periods (depending on tenure):
- 0-6 months → 2 weeks
- 6 months – 3 years → 1 month
- More than 3 years → 3 months
Fixed-term contracts can only be terminated early if allowed in the contract. B2B contracts are subject to individually agreed notice terms.
Severance pay is required only in cases of collective redundancies or employer-initiated termination due to company reasons (economic layoffs).
Severance pay depends on tenure:
- Less than 2 years → 1 month’s salary
- 2-8 years → 2 months’ salary
- More than 8 years → 3 months’ salary
There is a cap of 15 times the national minimum wage (about 60,000 PLN in 2024).
Misclassification can lead to legal and financial penalties. If a B2B contractor is treated like a regular employee (e.g., working under direct control, using company equipment, having fixed hours), authorities may reclassify them as an employee. Risks include:
- Retroactive employment taxes & social security contributions
- Penalties for tax evasion
- Claims for employee benefits & protections (e.g., paid leave, severance)
- Legal disputes & reputational damage
To minimize risk, ensure that B2B contractors have independence in their work, multiple clients, and control over their working conditions.
Key legal requirements include:
- Proper contract type (employment contract or B2B).
- Compliance with Polish Labor Code (for employment contracts).
- Social security & tax registration (ZUS, PIT reporting).
- Work permits (for non-EU workers).
- Minimum wage compliance (as of 2024: 4,242 PLN/month).
- Mandatory health & safety training.
Non-compete agreements (klauzula o zakazie konkurencji) are allowed but must be proportional and justified.
- During employment – Typically included in the contract and does not require extra compensation.
- Post-employment non-compete – Must include compensation of at least 25% of the former salary for the duration of the clause.
Courts can void excessive restrictions, so agreements should be limited in scope, duration (typically up to 12 months), and geography.
Hiring Through an EOR Partner
1. Contracting (B2B or Outsourcing)
Contracting allows companies to engage Polish professionals without direct employment obligations. This can be done through B2B contracts (hiring freelancers) or outsourcing agencies (engaging firms to provide staff).
✅ Advantages:
- No need for a legal entity – You can hire talent without setting up a Polish company.
- Lower costs – No employer social contributions; contractors handle their own taxes.
- Flexibility – Easier to scale teams up or down.
- Tax benefits for contractors – Many specialists prefer B2B for lower tax rates (as low as 8.5%-12% with IP Box).
- No labor law restrictions – Less risk of disputes over employment rights.
⚠️ Risks:
- Risk of misclassification – If treated like employees, contractors may claim employment rights.
- Limited control – Contractors work independently and may have multiple clients.
2. Employer of Record (EOR)
An EOR is a third-party company that legally employs workers on your behalf, handling payroll, taxes, and compliance while the employees work for you.
✅ Advantages:
- No entity setup required – The EOR is the legal employer, saving time and costs.
- Full compliance with Polish labor laws – Reduces legal risks.
- Payroll & tax administration handled – The EOR manages social security, taxes, and reporting.
- Employee benefits included – EORs provide health insurance, pension contributions, and leave entitlements.
- Faster hiring process – No need to navigate complex labor regulations yourself.
⚠️ Risks:
- Higher costs – EORs charge service fees (often 10-15% of salary).
- Less control over HR policies – The EOR sets employment terms.
- Not ideal for short-term projects – Better for long-term employees than short-term contractors.
Which Option is Best?
- Use Contracting (B2B) if you want cost savings, flexibility, and short-term hires.
- Use an EOR if you need full-time employees, compliance, and a long-term presence in Poland.
All IT Club offers comprehensive solutions to assist companies in hiring IT professionals in Poland.
Our services include:
- Contracting: We provide access to a pool of experts, enabling companies to hire the necessary talent within seven days. This flexible solution eliminates the need for long-term commitments and extensive sourcing efforts.
- Employer of Record (EOR): We allow businesses to build teams in Poland without establishing a legal entity. We ensure full compliance with local regulations and offer comprehensive HR support, acting as the legal employer on behalf of our clients.
- Try & Hire: This model enables companies to evaluate potential employees’ skills, cultural fit, and effectiveness before making a long-term commitment. It provides an opportunity to assess candidates in a real-work environment.
- Project Outsourcing: We supply vetted specialists accompanied by a project manager to ensure projects are delivered to the highest standards. This service is ideal for companies seeking to outsource entire IT projects.
By leveraging a community of over 200 recruiters through Talent Place, we guarantee a 100% match to client requirements, offering flexible cooperation terms, time-saving recruitment processes, cost optimization, and ongoing HR process support.
All IT Club specializes in helping you hire top IT talent across a variety of industries and roles. Here’s a breakdown of the industries and roles we can help you hire for:
Industries
- IT & Technology – We cover all aspects of software development, data science, and IT infrastructure.
- Finance & Fintech – We provide experts in software solutions for banking, payments, insurance, and financial services.
- E-commerce – We help you find talent to develop and manage online retail platforms, user experience, and backend systems.
- Healthcare & MedTech – We hire professionals to develop healthcare applications, medical devices, and innovative health tech solutions.
- Gaming & Entertainment – We assist with hiring developers, designers, and IT specialists for the gaming and entertainment industries.
- Startups & Scale-ups – We offer flexible, scalable hiring solutions for growing businesses in tech and related fields.
- Telecommunications – We provide skilled professionals to support communication networks, infrastructure, and software development.
- Automotive & Mobility – We support the growing field of tech in automotive software, autonomous vehicles, and smart mobility solutions.
Roles
- Software Developers & Engineers – Full-stack, front-end, back-end, and mobile developers.
- Data Scientists & Analysts – Experts in AI, machine learning, data processing, and data visualization.
- Cybersecurity Specialists – Professionals focused on protecting digital assets and systems from cyber threats.
- DevOps Engineers – Those skilled in automation, cloud computing, and systems integration.
- Project Managers – To ensure IT projects are completed on time and within budget.
- UX/UI Designers – Professionals focused on creating intuitive user experiences and appealing interfaces.
- QA Engineers & Testers – For ensuring software quality, performing tests, and identifying bugs.
- Cloud Engineers – Specialists in cloud infrastructure, AWS, Azure, Google Cloud, etc.
- Business Analysts – Experts in gathering and analyzing requirements for IT projects.
- IT Support & System Administrators – Professionals managing and maintaining IT systems.
- Product Managers – Those responsible for overseeing the development and life cycle of tech products.
At All IT Club, we offer flexible and customized hiring solutions tailored to your specific needs in any of these industries and roles. We can help you quickly find the right talent, whether for a short-term project or a long-term team member.
• Hourly/Daily/Monthly Rate – The contractor’s fee, which depends on experience, skill set, and market demand.
• Bonuses or Incentives – Some contracts include performance-based incentives or completion bonuses.
• Markup on Contractor Rate – Typically ranges from 10% to 25% of the contractor’s fee.
The time required to hire employees through our service depends on several factors, including the role complexity, market conditions, and candidate availability.
Timeframe: 2-4 weeks
If you have questions, please send them to us via the contact form.