Global Employer’s Guide to Hiring Employees in Poland

Poland has entered the global chat. Kraków coworking lofts hum past midnight. Wrocław trams carry engineers who speak Python and German in the same breath.

It is Central Europe’s largest economy outside Germany, yet salaries still sit below the Western EU curve, so budget meets brainpower in a way finance teams love. The World Bank pegs GDP growth at 3.2% for 2025, one of the fastest clips in the bloc.

Universities turn out roughly 400,000 graduates each year, including an estimated 650,000 tech professionals already on the ground. English proficiency ranks among the top fifteen worldwide, and many candidates add German or French, which turns a support desk in Łódź into a pan-European help line overnight.

Infrastructure seals the deal; a modern highway links Baltic ports to German factories in hours. Data centers in Warsaw run on EU-grade privacy rules, so your cloud-first roadmap slides straight into GDPR alignment. Add EU passport perks (free movement, common VAT rules) and Poland becomes a launchpad for serving clients from Lisbon to Vilnius without hopping time zones.

“Poland offers access to highly qualified professionals,” writes the attorneys at Thompson & Stein. “Polish specialists in technology, engineering, and finance are internationally recognized. Many of them are fluent in English, facilitating cooperation with foreign investors.” Pebl’s guide shows how to tap that potential without tripping on local labor codes or Social Insurance Institution (ZUS) filings.

Poland’s prime labor market

Poland’s workforce is big and young. More than 17 million people are active in the labor market, and half of them hold at least a bachelor’s degree. English proficiency ranks just behind Germany and on par with the Netherlands, while recruiters in Kraków now advertise roles that ask for German, French, or Spanish as a second language. For a company that serves the whole EU, that multilingual reach turns one hire into coverage for several markets.

Four sectors set the hiring tempo:

• Tech and business services anchor Warsaw, Kraków, and Wrocław. The information and communication technology (ICT) market should top $31 billion in 2025, helped by 3,000+ startups and a steady pipeline of STEM graduates.
• Manufacturing leans on a supply chain that feeds German automakers yet costs roughly €17.30 per labor hour, less than half the EU average.
• Logistics hubs like Łódź ride Poland’s north-south highway web, moving goods from Baltic ports to Berlin in under five hours.
• Finance and shared-service centers employ multilingual analysts who clear EU-wide transactions from low-cost desks in Katowice and Poznań.

Eurostat puts Poland’s average labor cost at €17.3 per hour versus €33.5 for the EU as a whole and €43.4 in Germany. Yet workers follow EU labor directives and expect GDPR-grade data safeguards, so you get cost relief without cutting regulatory corners.

The result is a market that blends scale, skill, and savings. For global employers seeking a foothold inside the EU, Poland offers the rare mix of Tier-1 engineering talent, predictable rule of law, and invoices your CFO will actually smile at.

Primary ways to hire in Poland

When hiring in Poland, global companies usually choose one of two tracks.

• Setting up a local entity. You create a Polish company and hire talent directly, which grants full control and deeper integration with local suppliers, banks, and regulators. Best for firms that plan a long-term footprint and want to shape culture, benefits, and growth from the inside.
• Hiring through an employer of record (EOR). The EOR becomes the legal employer, issues compliant contracts, runs payroll, and files every return. Ideal for fast market entry and head-count flexibility since you manage the day-to-day work while the EOR manages all statutory risk.

Working hours, holidays, and leave

Poland structures working time and leave with clear rules to protect workers while keeping businesses agile. Key highlights include:

• Standard workweek runs 40 hours, Monday-Friday, with eight-hour days and scheduled breaks.
• Overtime pays a premium: 150% for extra hours, 200% at night or on public holidays.
• Paid vacation begins at 20 days annually and rises to 26 days after 10 years of combined education and experience.
• There are 13 public holidays, including Constitution Day (May 3rd), Independence Day (November 11th), and Christmas (December 25th), which trigger either double pay or compensatory time off when worked.
• Sick leave offers employees up to 33 days at 80% salary; state social security (ZUS) funds extend periods.
• Maternity leave spans 20 weeks at full pay; fathers get 2 weeks of paternity leave.
• Parental leave can last up to 32 weeks, split flexibly between parents, usually paid at 60%.

Employee benefits and social contributions

Strong social support blends mandatory and optional benefits in Poland:

• Employers must contribute 20% to 25% of gross wages to the Social Insurance Institution (ZUS), funding pensions, disability, sickness, accident insurance, and labor funds.
• Employees contribute roughly 13% to 14%, plus a 9% non-deductible health insurance contribution.
• Common additional perks include meal vouchers, private health insurance, and transit allowances, especially prevalent in the IT and finance sectors.
• These customary extras help firms attract and keep top talent and foster a productive work environment.

Payroll and taxation in Poland

Payroll operates on a monthly schedule, with companies acting as withholding agents for income tax and social security contributions. Poland uses a two-tier Personal Income Tax system: 12% on income up to PLN 120,000 per year, and 32% on amounts above that, following an annual tax-free allowance of PLN 30,000.

Employers deduct tax and social security in each pay cycle, remit taxes to authorities by the 20th of the following month, and provide employees with annual Personal Income Tax (PIT) certificates summarizing taxes withheld. Documentation and compliance are crucial to avoid penalties.

Navigating employment contracts in Poland

Polish labor law requires written employment contracts to establish clear and enforceable terms between employers and employees. Verbal agreements exist but carry risks and generally lack the protections that written contracts provide. The Polish Labor Code governs these agreements and mandates specific elements to ensure validity and compliance.

The three main contract types are indefinite-term, fixed-term, and probationary. Indefinite-term contracts offer full labor rights and job security with no maximum duration. Fixed-term contracts allow for project-based or temporary work but may not exceed 33 months or be renewed beyond three times without automatically becoming indefinite. Probationary contracts, usually up to three months, give both parties a trial period to assess fit.

A contract has to say who you are hiring, what they will do, what they get paid, how often they get paid, how many hours they work, and how either side can end things. Polish is the default language, but lots of firms add English or other languages for international staff. Now, employers must also file contracts electronically before work begins and translate those not in Polish.

Poland ranks among Europe’s top countries for hiring remote workers, thanks to its skilled workforce, advanced digital infrastructure, and cost-effective wages. Contracts should clearly reflect remote work arrangements by outlining work location, schedule flexibility, and data protection responsibilities. This legal clarity supports the growing trend of hybrid and fully remote teams managed from Poland while ensuring compliance with local labor standards.

Employee vs. contractor classification

In Poland, workers fall into two main categories: employees and independent contractors. Employees receive the full suite of labor protections and employee benefits, whereas contractors operate as self-employed, taking on more autonomy but no statutory protections. The Labor Code specifies that employees work under direct supervision, follow set hours, perform work at employer-designated locations, and maintain continuous working relationships.

Misclassifying employees as contractors creates serious financial risks. Employers face fines up to PLN 30,000 per violation, plus back taxes, unpaid social contributions, and retroactive benefits for up to five years with interest. The State Employment Inspectorate actively enforces these rules, having imposed penalties in hundreds of cases where companies incorrectly treated employees as B2B contractors.

Key indicators of employee status include working under company direction and supervision, fixed working hours, exclusive service to one employer, and use of employer-provided tools. True contractors set their own schedules, may serve multiple clients, bear entrepreneurial risk, and issue VAT invoices for their services. Partnering with an EOR helps companies navigate these distinctions correctly while managing compliance and payroll, reducing legal exposure, and ensuring proper worker classification from day one.

Work permits and immigration in Poland

Poland offers several types of work permits based on the foreign worker’s role and nationality. Hiring EU, EEA, or Swiss citizens is streamlined without work permit requirements, while non-EU nationals must navigate permit and visa processes. Employers play a crucial role in sponsoring and monitoring work permits to ensure compliance with legal requirements.

• Type A. Standard work permit for non-EU/EEA/Swiss nationals employed by Polish companies, valid up to three years with renewals.
• Type B. For members of management boards or executives actively managing Polish entities, typically issued for up to five years.
• Type C. Intra-company transfer permits for foreign employees moving to Polish branches or subsidiaries.

EU/EEA/Swiss nationals can work in Poland without work permits, but must register for residency after three months. For non-EU workers, employer sponsorship is mandatory, including application submission, document verification, and compliance monitoring.

Permit processing takes four to eight weeks on average, followed by visa issuance. The total timeline, including the process of acquiring a Polish visa, ranges from 6 to 12 weeks. Employers must ensure timely renewals and comply with quotas that limit the non-EU workforce within companies.

Simplified procedures exist for certain nationalities, particularly Ukrainians, Armenians, Georgians, Belarusians, and Moldovans, who can work under declaration procedures for up to six months without standard work permits. For companies entering the Polish market without local entities, partnering with an EOR provides the necessary legal sponsorship structure to secure work permits while maintaining compliance with immigration requirements.

Recruit Polish talent with Pebl

At Pebl, our global EOR services enable you to hire Polish talent without the need to incorporate locally. We handle compliant contracts, monthly payroll with ZUS filings, income tax withholding, and work permit sponsorship so that you can onboard developers in Kraków or analysts in Warsaw within days rather than months. Our team navigates Poland’s labor laws, administers employee benefits, and maintains audit-ready records, allowing you to focus on building your business.

Ready to tap into Poland’s skilled workforce? Talk to a Pebl expert today for a free consultation.

FAQs: Hiring in Poland

Here are answers to some of the most common questions about hiring employees in Poland.

Can I hire Polish employees without a local business entity?

Yes, you can hire Polish employees without a local entity by using an EOR, which legally employs the workers on your behalf in Poland. This eliminates the need to establish a local entity while ensuring full compliance with Polish labor and tax laws. The EOR handles contracts, payroll, ZUS registration, and all ongoing compliance requirements, allowing you to onboard talent within days rather than waiting months for entity setup.

What taxes do employers pay in Poland?

Employers pay social security contributions to ZUS totaling approximately 20% to 25% of gross salary, covering pensions, disability, accident insurance, and labor funds. They also withhold PIT from employees, which is progressive with rates of 12% and 32%. All contributions and withholdings must be remitted by the 20th of the following month, with annual PIT-11 statements due to employees by February’s end.

Do employment contracts need to be in Polish?

Yes, Polish labor law requires employment contracts to be in Polish to ensure legal validity and enforceability. However, many companies also provide bilingual contracts for clarity, particularly for employees who do not speak Polish. Contracts not in Polish may face challenges in labor courts and could complicate the enforcement of terms like confidentiality or non-compete clauses.

Is severance required in all terminations?

No, severance pay is typically required in cases of redundancy or unfair dismissal, but not for resignations or terminations with cause. When severance applies, it usually ranges from one to three months’ salary, depending on length of service and contract terms. Employees terminated during probation periods or for misconduct generally receive no severance compensation.

How long is the standard probation period in Poland?

The probation period in Poland can last up to three months and allows both employer and employee to terminate the contract with shorter notice. Employers often use it to assess suitability before confirming permanent employment. During probation, either party can terminate with just three days’ notice, and probation periods cannot be extended or renewed for the same employee.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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