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- Employee Cost Calculator
- Poland
Employee cost calculator in Poland
Looking to hire in Poland? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
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Request a demoFrequently Asked Questions (FAQs)
What mandatory employment costs and benefits must employers provide in Poland?
Employers in Poland are required to contribute to ZUS (Zakład Ubezpieczeń Społecznych) for pension (9.76%), disability (6.50%), accident insurance (typically 1.67%), the Labor Fund (2.45%), and the Guaranteed Employee Benefits Fund (0.10%)—all based on the employee's gross salary. Statutory benefits also include paid annual leave (minimum 20 or 26 days, depending on tenure), sick leave, and maternity/paternity leave as regulated by the Polish Labour Code (Kodeks pracy). Health insurance contributions are also mandatory for access to public healthcare.
How are payroll taxes and employer/employee contributions calculated in Poland?
Payroll tax in Poland is calculated on the gross salary, with employers and employees each making specific ZUS contributions; employers pay approximately 20-22% of gross salary, while employees pay around 13.71%. Additionally, employees are subject to Personal Income Tax (PIT) at progressive rates of 12% and 32%, which employers must withhold and remit. Employers are responsible for withholding and reporting both social security and PIT through the monthly PIT-4 return.
What hidden or indirect costs should employers consider when hiring employees in Poland?
In addition to mandatory contributions, employers should consider potential costs such as severance pay for redundancies (regulated by the Act on Group Layoffs), administrative fees for payroll processing, and costs related to employee training and onboarding. While a statutory 13th month salary is not required, it is customary in some sectors. Additional expenses may arise from collective bargaining agreements (CBAs) or sector-specific allowances.
What legal requirements affect the total cost of employment in Poland?
The national minimum wage (ustawa o minimalnym wynagrodzeniu za pracę) is updated annually and sets a floor for gross salaries, with strict enforcement by the Państwowa Inspekcja Pracy (National Labour Inspectorate). Working time is capped at 40 hours per week, with overtime pay mandated by law, and termination of employment often requires advance notice and, in some scenarios, severance according to the Labour Code. Collective bargaining agreements can further define minimum standards or additional benefits, impacting total employment costs.
What are typical employment practices and contract types in Poland that affect employer costs?
The most common forms of employment are umowa o pracę (contract of employment), umowa zlecenie (mandate contract), and B2B (self-employed contracts), each with different tax and social security implications. Standard probation periods last from one to three months, and while private medical insurance or Multisport cards are not mandatory, they are often offered as competitive benefits. Employers should ensure contract terms comply with the Labour Code, as misclassification can trigger retroactive contributions and penalties.
