Employing in Poland

Access and hire global talent & deploy them anywhere in the world by removing restrictions from only hiring from local markets.

Enter the Polish market without the requirement of opening a local entity.

Expanding into
Poland

Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all of the registration procedures that needs to be done and documentation required.

Poland flag

Dedicated to Offering You 24/7 Support

Get the Support You Need

Expanding to countries such as Poland – which is characterized by a productive and highly-skilled workforce, complex employment and tax laws, a strong infrastructure network linking to the rest of Europe, and leading sectors in business services, automotive manufacturing, gaming, aviation, and renewable energy – can bring both excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigorous legal structures and laws.

Ensuring compliance without the sufficient knowledge of the country’s laws also adds to the stress of getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.

Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of an International Professional Employer Organization (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework. This can be best utilized when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to Poland

Learn all about expanding into Poland and see what we can do to make your expansion easier.

Download our Guide to Poland

Learn all about expanding into Poland and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in Poland

Hiring Staff
in Poland

The Main Sectors of the Polish Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

The agricultural sector is one of the major industries in Poland – it’s geography, mild climate, and plenty of arable plains sets perfect conditions for this sector to thrive.

The country’s main exports are processed fruits and vegetables, meat, and dairy products. Additionally, Poland is the largest producer of potatoes and rye in the EU, and one of the world’s largest producers of beets and triticale.

Grains are the most important crops in the country, especially wheat, oats, barley, and rye. Poland has the world’s second-largest potato production and is the sixth-largest producer of milk and pigs in the world.

Poland’s large population also acts as an essential market for the country’s agricultural produce. Of the sugar produced in Poland, 83% is consumed domestically, as well as 90% of the poultry, 74% of the bacon, and 84% of the tinned meat. The country has been nicknamed as one of Europe’s “feeders”.

Agriculture accounts for about 4% of Poland’s GDP and is responsible for roughly 12.5% of Poland’s employment.

The manufacturing sector is also a significant industry in Poland’s economy – automotive production accounts for 11% of Poland’s total industrial output and about 4% of the country’s GDP.

The country is also one of the world’s largest vehicles manufacturers and is Eastern and Central Europe’s largest manufacturer of light vehicles. Annual exports from the automotive sector are valued at over 15.7 billion Euros, which translates to about 16% of the country’s total exports.

The manufacturing industry also includes shipbuilding, mining, petrochemicals and fertilizers, electronics, and electrical machinery.

Poland was regarded as the world’s 16th most popular tourist destination in 2016 after an estimated 17.5 million tourists visited the country that year. The tourism industry contributes an estimated 6% to Poland’s GDP, and employs approximately 196,000 people in accommodation and catering.

Poland is known for its natural sceneries and historic sites. Natural tourist attractions in the country include the Tatra Mountains and the Baltic Sea. Cities such as Warsaw, Gdansk, Torun, and Krakow have numerous sites of great historical significance. The numerous cultural events held in the country also attract thousands of tourists.

Since joining the EU, Poland has played a more significant role in the European financial and business market.

It keeps growing at an unprecedented rate year to year, which is possible thanks to a large and vast supply of highly skilled English proficient workers in the EU.

There are many offices of foreign financial and business-based corporations that provide services but also provide backend support for foreign offices thanks to relatively cheaper Polish labor. Many major global Consulting firms open their facilities seeking opportunities in the Polish market.

The Polish economy has many well-established companies with great influence in both local and global markets, and this applies within the petrochemical and fertilizing industry.

The chemical sector in Poland employs around 300,000 people, which accounts for 11% of employment in the total industry within Poland.

Mining is the biggest industry in Poland. Poland is the second-largest coal-mining country in Europe, after Germany, and the ninth-largest coal producer in the world.

Poland’s mining and quarrying accounts for 3% of total industrial production. The country consumes nearly all the coal it mines and is no longer a major coal exporter.

The Main Sectors of the Polish Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Mountain landscape in Poland
The agricultural sector is one of the major industries in Poland – it’s geography, mild climate, and plenty of arable plains sets perfect conditions for this sector to thrive.

The country’s main exports are processed fruits and vegetables, meat, and dairy products. Additionally, Poland is the largest producer of potatoes and rye in the EU, and one of the world’s largest producers of beets and triticale.

Grains are the most important crops in the country, especially wheat, oats, barley, and rye. Poland has the world’s second-largest potato production and is the sixth-largest producer of milk and pigs in the world.

Poland’s large population also acts as an essential market for the country’s agricultural produce. Of the sugar produced in Poland, 83% is consumed domestically, as well as 90% of the poultry, 74% of the bacon, and 84% of the tinned meat. The country has been nicknamed as one of Europe’s “feeders”.

Agriculture accounts for about 4% of Poland’s GDP and is responsible for roughly 12.5% of Poland’s employment.

The manufacturing sector is also a significant industry in Poland’s economy – automotive production accounts for 11% of Poland’s total industrial output and about 4% of the country’s GDP.

The country is also one of the world’s largest vehicles manufacturers and is Eastern and Central Europe’s largest manufacturer of light vehicles. Annual exports from the automotive sector are valued at over 15.7 billion Euros, which translates to about 16% of the country’s total exports.

The manufacturing industry also includes shipbuilding, mining, petrochemicals and fertilizers, electronics, and electrical machinery.

Poland was regarded as the world’s 16th most popular tourist destination in 2016 after an estimated 17.5 million tourists visited the country that year. The tourism industry contributes an estimated 6% to Poland’s GDP, and employs approximately 196,000 people in accommodation and catering.

Poland is known for its natural sceneries and historic sites. Natural tourist attractions in the country include the Tatra Mountains and the Baltic Sea. Cities such as Warsaw, Gdansk, Torun, and Krakow have numerous sites of great historical significance. The numerous cultural events held in the country also attract thousands of tourists.

Since joining the EU, Poland has played a more significant role in the European financial and business market.

It keeps growing at an unprecedented rate year to year, which is possible thanks to a large and vast supply of highly skilled English proficient workers in the EU.

There are many offices of foreign financial and business-based corporations that provide services but also provide backend support for foreign offices thanks to relatively cheaper Polish labor. Many major global Consulting firms open their facilities seeking opportunities in the Polish market.

The Polish economy has many well-established companies with great influence in both local and global markets, and this applies within the petrochemical and fertilizing industry.

The chemical sector in Poland employs around 300,000 people, which accounts for 11% of employment in the total industry within Poland.

Mining is the biggest industry in Poland. Poland is the second-largest coal-mining country in Europe, after Germany, and the ninth-largest coal producer in the world.

Poland’s mining and quarrying accounts for 3% of total industrial production. The country consumes nearly all the coal it mines and is no longer a major coal exporter.

Commercial Laws
in Poland

  • The National Revenue Administration – KAS is responsible for the implementation of revenues from taxes, customs duties, fees, and non-tax budget receivables.  KAS protects the interests of the State Revenue and the customs territory of the European Union. It also provides service and support for the taxpayers in the fulfillment of tax and customs obligations.
  • The Ministry of Family and Social Policy – a government entity which works on matters relating to family security, stable work, unemployment, the elderly, social security, and equal opportunity.

General requirements applying to all contracts include:

  • The Employment Rights Act 1996 states that employees must receive a written statement detailing terms and conditions of their employment on the first day at work
  • In the absence of a written contract, the employer must provide a written statement before the first day giving full details of the parties, remuneration, start date and end date of employment, type of contract and place of work
  • Poland’s Labor Code covers fixed term and open-ended contracts, including one for probationary periods
  • Any changes to the terms and conditions, particularly pay, must be confirmed in writing
  • Additionally, it is possible to conclude a part-time employment contract, which must not have inferior terms and conditions to full-time employees undertaking the same work
  • Fixed-term contracts must not exceed three in number over a maximum of 33 months, after which it becomes an open-ended (indefinite) contract
  • Contracts for trial periods, which are considered a separate agreement, must not exceed three months
  • Notice periods can apply to contracts for trial periods, fixed term, or indefinite. They can vary between two weeks, one month or three months; or three days, one week or two weeks for trial periods

Income Tax: Liability for personal income tax is based on residency. Individuals whose personal and economic base is in Poland and who reside there for more than 183 days in a tax year are residents and are taxed on their worldwide income.

Those who are not based in Poland and do not reside there for more than 183 days are non-residents and taxed only on Polish-sourced income.

The tax year runs from January 1 until December 31 with returns and payments due by April 30 of the following year. The headline rate is 32% with a 4% ‘solidarity tax’ added to income exceeding PLN 1,000,000 (€220,200, US$252,400).

Health and Social Insurance: In Poland, social security consists of old-age pension, invalidity pension, sickness and maternity insurance, insurance against accidents at work and occupational diseases, plus health insurance. In addition, Poland has a system of family benefits, social assistance benefits and unemployment benefits.

Employers, employees and self-employed contribute to the system, with the employers withholding and remitting the employees’ contribution to the Social Insurance Institute (ZUS), in addition to their own percentage contribution of the employees’ gross salaries. As of tax changes introduced in January 2022 the contribution to health insurance by employees was no longer tax deductible.

Employers contribute:

  • 16.26% of total gross salary, capped at PLN 157,770 (€34,750, US$39,835), to pensions and disability insurance
  • 1.67% of total gross salary (up to nine employees); 0.67% – 3.33% (more than nine employees with rate depending on the business sector) to accident insurance
  • 1.67 flat rate, generally, for foreign employers towards accident insurance
  • 2.45% of total gross salary to Labor Fund

Employees contribute:

  • 11.26% of total gross salary, capped at PLN 157,770 (€34,750, US$39,835), to pensions and disability insurance. As of January 2022, the 7.75% attributed to health insurance was no longer tax deductible
  • 2.45% of total gross salary to sickness insurance

For more information Download our Poland Country Guide…

Commercial Laws
in Poland

Poland city with buildings and people walking
  • The National Revenue Administration – KAS is responsible for the implementation of revenues from taxes, customs duties, fees, and non-tax budget receivables.  KAS protects the interests of the State Revenue and the customs territory of the European Union. It also provides service and support for the taxpayers in the fulfillment of tax and customs obligations.
  • The Ministry of Family and Social Policy – a government entity which works on matters relating to family security, stable work, unemployment, the elderly, social security, and equal opportunity.

General requirements applying to all contracts include:

  • The Employment Rights Act 1996 states that employees must receive a written statement detailing terms and conditions of their employment on the first day at work
  • In the absence of a written contract, the employer must provide a written statement before the first day giving full details of the parties, remuneration, start date and end date of employment, type of contract and place of work
  • Poland’s Labor Code covers fixed term and open-ended contracts, including one for probationary periods
  • Any changes to the terms and conditions, particularly pay, must be confirmed in writing
  • Additionally, it is possible to conclude a part-time employment contract, which must not have inferior terms and conditions to full-time employees undertaking the same work
  • Fixed-term contracts must not exceed three in number over a maximum of 33 months, after which it becomes an open-ended (indefinite) contract
  • Contracts for trial periods, which are considered a separate agreement, must not exceed three months
  • Notice periods can apply to contracts for trial periods, fixed term, or indefinite. They can vary between two weeks, one month or three months; or three days, one week or two weeks for trial periods

Income Tax: Liability for personal income tax is based on residency. Individuals whose personal and economic base is in Poland and who reside there for more than 183 days in a tax year are residents and are taxed on their worldwide income.

Those who are not based in Poland and do not reside there for more than 183 days are non-residents and taxed only on Polish-sourced income.

The tax year runs from January 1 until December 31 with returns and payments due by April 30 of the following year. The headline rate is 32% with a 4% ‘solidarity tax’ added to income exceeding PLN 1,000,000 (€220,200, US$252,400).

Health and Social Insurance: In Poland, social security consists of old-age pension, invalidity pension, sickness and maternity insurance, insurance against accidents at work and occupational diseases, plus health insurance. In addition, Poland has a system of family benefits, social assistance benefits and unemployment benefits.

Employers, employees and self-employed contribute to the system, with the employers withholding and remitting the employees’ contribution to the Social Insurance Institute (ZUS), in addition to their own percentage contribution of the employees’ gross salaries. As of tax changes introduced in January 2022 the contribution to health insurance by employees was no longer tax deductible.

Employers contribute:

  • 16.26% of total gross salary, capped at PLN 157,770 (€34,750, US$39,835), to pensions and disability insurance
  • 1.67% of total gross salary (up to nine employees); 0.67% – 3.33% (more than nine employees with rate depending on the business sector) to accident insurance
  • 1.67 flat rate, generally, for foreign employers towards accident insurance
  • 2.45% of total gross salary to Labor Fund

Employees contribute:

  • 11.26% of total gross salary, capped at PLN 157,770 (€34,750, US$39,835), to pensions and disability insurance. As of January 2022, the 7.75% attributed to health insurance was no longer tax deductible
  • 2.45% of total gross salary to sickness insurance

For more information Download our Poland Country Guide…

FAQ

In Poland, an Employer of Record (EOR) serves as the official employer for your local workforce, managing legal employment tasks such as onboarding, administering benefits, and processing payroll. This allows your company to focus on the daily management and operational aspects of your team without the administrative burden of employment regulations and responsibilities.

To efficiently hire talent in Poland, leverage our Employer of Record (EOR) and Talent Acquisition solutions. They streamline hiring by handling employment contracts, payroll, and HR regulations, eliminating the need for a local subsidiary. This method guarantees a fast, compliant, and effective recruitment process, enabling rapid establishment of your company’s presence in Poland.

For efficient payroll management in Poland, our comprehensive solution handles everything from navigating local payroll regulations to ensuring compliance with income tax and social security contributions. Our Multi-Country Payroll solution simplifies the administrative workload and provides options tailored to meet your business requirements, guaranteeing seamless operations in Poland and beyond.

Establishing a local entity is not required when you first expand into Poland. By using our Employer of Record (EOR) solution it enables the hiring and payroll management of employees without the need for creating a subsidiary, offering a swift and compliant way to penetrate the Polish market and effectively manage your workforce.

FAQ

In Poland, an Employer of Record (EOR) serves as the official employer for your local workforce, managing legal employment tasks such as onboarding, administering benefits, and processing payroll. This allows your company to focus on the daily management and operational aspects of your team without the administrative burden of employment regulations and responsibilities.

To efficiently hire talent in Poland, leverage our Employer of Record (EOR) and Talent Acquisition solutions. They streamline hiring by handling employment contracts, payroll, and HR regulations, eliminating the need for a local subsidiary. This method guarantees a fast, compliant, and effective recruitment process, enabling rapid establishment of your company’s presence in Poland.

For efficient payroll management in Poland, our comprehensive solution handles everything from navigating local payroll regulations to ensuring compliance with income tax and social security contributions. Our Multi-Country Payroll solution simplifies the administrative workload and provides options tailored to meet your business requirements, guaranteeing seamless operations in Poland and beyond.

Establishing a local entity is not required when you first expand into Poland. By using our Employer of Record (EOR) solution it enables the hiring and payroll management of employees without the need for creating a subsidiary, offering a swift and compliant way to penetrate the Polish market and effectively manage your workforce.

Contact Us

Join Our Newsletter

Stay up to date with latest service offerings while receiving tips and strategies for making your next remote hire.