Poland Country Guide 2022

Poland

The Republic of Poland is a country in Central Europe, with a quickly developing infrastructure and a diverse landscape. Polish people tend to be on the conservative side, partly due to a very strong Catholic religious presence, but they are very accommodating to foreigners, and Poland has a steadily growing expat presence. Poland also has a lot of bureaucratic hurdles, which can be daunting to foreigners at first.

Poland has a free education system, extensive public transport, high housing standards and good healthcare; while salaries are on average not that great, the cost of living is also quite low.

  • Capital: Warsaw
  • Spoken Languages: Polish
  • Currency: Euro Polish Złoty (PLN)
  • Minimum monthly wage: PLN 3,123 (Gross)

Entry Visa

Citizens of EU/EFTA Member States and Switzerland can enter Poland with an identity card or a valid passport; other foreign citizens may enter with a valid Schengen visa.

Work Permit / Residence Permit

Citizens of EU/EFTA Member States and Switzerland can live and work without a work or residence permit in Poland.

Other foreign nationals must obtain a Work Permit; this is done by the employer. In order to obtain a work permit for a foreign national, the employer must determine that there are no citizens of Poland or the EU that are qualified to fill the position; the remuneration for the position must also be no less than 70% of the average monthly wage. Work permits are issued by the local government head of the land, the Voivode; once the permit has been obtained, the employee can enter Poland and begin work.

Individuals may also apply for a temporary residence permit (and get a Poland Residence Card), which is valid for 1 to 3 years; it also allows the individual to visit other countries in the EU without a visa. In order to obtain the permit, the individual must have health insurance, either from Poland or from abroad.

Social Security Registration

Registration to Social Security (ZUS) in Poland is done fully by the employer.

Working Hours

A standard working week in Poland is 8 hours/day, or 40 hours/week. Overtime work at night or on holidays is remunerated with an extra 100% bonus; any other overtime is remunerated at an extra 50%.

The maximum overtime hours are 48 hours per working week, and 150 hours per year.

Public Holidays

  • 01 January (New Year’s Day)
  • 06 January (Three King’s Day)
  • Easter Monday (Not a standard date, usually March/April)
  • 01 May (Labour Day)
  • 03 May (Constitution Day)
  • Corpus Christi (Not a standard date, second Thursday after Whitsun)
  • 15 August (Assumption Day)
  • 01 November (All Saint’s Day)
  • 11 November (Independence Day)
  • 25 December (Christmas Day)
  • 26 December (St. Stephen’s Day)

Vacation Allowance

The standard amount of annual leave in Poland is 20 days for employees that have worked less than 10 years, and 26 for those who have worked more. During the first year, they accrue the right for 1/12th of the holiday entitlement after completing each month of work.

Unused annual leave days can be transferred to the following year, but must be taken by September 30. There is no remuneration for unused leave.

Sick Leave

The amount of paid sick leave granted in Poland depends on the age of the employee; employees lass than 50 years old are entitled to 33 days sick leave paid by the employer; after day 34, the payments are compensated by the social security/. For employees over 50, the number of sick days paid by the employer is reduced to 14.

Sick leave is paid at 80% of the employee’s monthly salary; however, if the illness occurs during pregnancy or on the way to work, this amount is raised to 100%.

Maternity / Paternity leave

Maternity: 20 Weeks (31 weeks for two children, and an extra two weeks for each additional child). Cannot start earlier than 6 weeks before the due date. A minimum of 14 weeks must be taken after birth; any leave beyond that can transferred to the father. Social security covers maternity pay at 100%.

Paternity: 2 weeks within the first 24 months of the child’s birth; can be taken in a maximum of two installments. Social security covers pay at 100%.

Termination & Severance

After termination of employment, if the company has more than 20 employees, or the employee was dismissed by fault of the employer, the employee is entitled to severance pay based on their length of employment.

Length of EmploymentSeverance Pay
< 2 Years1 Month’s Salary
2 – 8 Years2 Months’ Salary
8 Years +3 Month’s Salary

Notice Period

The notice period in Poland is dependent on the length of service.

Length of EmploymentNotice Period
0 – 6 Months2 Weeks
6 Months – 3 Years1 Month
3 Years +2 Months

Social Security

Employee social insurance contributions are deducted automatically from the wage, while employer contributions are paid by the employers themselves.

CategoryEmployer (%)Employee (%)
Pensions and Disability *16.26%11.26%
Sickness Insurance0%2.45%
Accident Insurance **0.67% – 3.33%0%
Labour Fund2.45%0%
Employee Guaranteed Benefits0.10%0%
Fund
Total19.48% – 22.14%13.71%

* The maximum monthly insurable earnings for Pensions and Disability contributions is PLN 177,660 for both employer and employee. Other contributions have no cap.

** The percentage of accident insurance contributions depends on the amount of employees in the company; 1.67% for companies with less than 9 employees, and 0.67% – 3.33% for companies with more, dependent on the business sector.  For foreign companies, the rate is a flat 1.67%.

Pension

Retirement pensions are paid out by the Social Insurance Institute (ZUS), and are accumulated from social security contributions.

Taxation

The Polish fiscal year runs from January 1 to December 31.

Tax Rates

The following progressive rates apply for 2022.

Taxable Income (PLN)Tax Rate (%)
0 – 30,0000%
30,001 – 120,00017%
120,001 +32%

Tax Returns

The annual income tax return must be filed online between until April 30th for the previous tax year.

Double Taxation

Poland has tax treaties with multiple other countries, which can reduce payable tax on certain incomes. It is also possible to obtain tax relief in Poland to avoid double taxation on the same income.

Health Insurance

All individuals paying social insurance contributions in Poland are entitled to government healthcare. However, it is also possible to take out private health insurance to supplement this basic health coverage.

Cost of Living

The cost of living in Poland is on the low side, especially for Europe. The estimated monthly cost for a single person is around PNL 4,300 – 4,700, with 1,900 – 2,300 going to rent.


How We Can Help

We provide a full set of services in Poland allowing corporate clients, recruitment agencies and professional contractors to operate in an optimal manner while ensuring that all local employment obligations are taken care of.

Access Financial offers the following solution in Poland:

  • Self-Employed Solution

If you would like to discuss how Access Financial can help in Poland, please contact us.

Disclaimer

WE HAVE PREPARED THIS AS A GUIDE ONLY; IT DOES NOT FORM PART OF AN OFFER. PLEASE REQUEST ILLUSTRATIONS BASED ON YOUR SPECIFIC CASE FROM ONE OF OUR SOLUTION MANAGERS.