Poland

Registrations and Establishing an Entity

To legally employ staff and operate in Poland, companies must register with:

• The National Court Register (KRS)
  
  
• The Tax Office
  
  
• The Social Insurance Institution (ZUS)
  
  

Businesses typically take the legal form of:

• Limited Liability Company (Sp. z o.o.)
  
  
• Joint Stock Company (S.A.)
  
  
• Sole Proprietorship
  
  
• Representative Office (limited to non-commercial activities)
  
  

The setup process includes obtaining a REGON statistical number and a VAT registration if applicable.

A local bank account is required for payroll and tax remittances.

Working Week

Standard working hours in Poland are:

• 8 hours per day
• 40 hours per week (5-day work week)
  
  

Overtime is permitted and must be compensated either with additional pay or time off. The maximum number of working hours including overtime cannot exceed an average of 48 hours per week calculated over a reference period.

Employees are entitled to at least 11 hours of uninterrupted rest in every 24-hour period and 35 hours per week.

A written employment contract is required and must be provided before the start of work.

Personal Income Tax (PIT)

Polish residents are taxed on worldwide income. Non-residents are taxed on Polish-source income only.

The tax year is the calendar year (January–December). Employers are responsible for withholding and paying PIT monthly.

PIT Rates (2024):

• Up to PLN 120,000: 12%
• Above PLN 120,000: 32%

Tax-free allowance: PLN 30,000

Tax-reducing amount: up to PLN 3,600 per year

Social Security Contributions

Contributions are split between employer and employee as follows:

Total contributions are approximately 21%–22% for employers and 13.71% for employees.

Contributions are paid to ZUS monthly.

Payroll Process

Payroll is processed monthly in Poland. Employers must:

• Provide written payslips
  
  
• Pay employees by the 10th day of the following month
  
  
• File PIT-4 and ZUS DRA declarations monthly
  
  
• Submit PIT-11 annual tax information by the end of February
  
  

Once registered, it takes between 2–4 weeks to fully implement and process payroll in Poland.

Employers often use payroll software integrated with the national systems to ensure automated tax and ZUS filings.

Payslips must show:

• Gross salary
  
  
• Allowances
  
  
• Deductions (PIT, social contributions)
  
  
• Net salary
  
  

Payslips may be issued electronically provided the employee consents in writing.

ZUS and PIT declarations must be submitted even if no tax is due.

Electronic payroll and reporting to authorities are standard.

Hiring

Employers must:

• Draft a written employment contract before work begins
• Register the employee with ZUS no later than the day before work starts
• Provide health and safety training
• Conduct a pre-employment medical examination
• A medical certificate must be issued by an occupational health physician before employment begins
• New employees must submit the PIT-2 form to enable calculation of the tax-reducing amount

Termination

Employees may be terminated with:

• Notice (dependent on length of service: 2 weeks, 1 month, or 3 months)
• Just cause (with immediate effect)

Final payments must include outstanding wages, unused leave compensation, and benefits. A work certificate must be issued on the last day of employment.

Minimum Wage (2025)

• PLN 4,300/month (gross)
• PLN 28.10/hour

Annual Leave

• 20 days per year (if <10 years of service)
  
  
• 26 days per year (if ≥10 years of service)
  
  

Employees are also entitled to:

• Sick pay (paid by employer for first 33 days, then by ZUS)
  
  
• Maternity leave (20 weeks), paternity leave (2 weeks), parental leave
  
  
• 13 public holidays annually
  
  

Other common benefits include:

• Private healthcare
  
  
• Meal vouchers
  
  
• Transport subsidy
  
  
• Multisport gym pass

Non-EU nationals must obtain:

• Work Permit (Types A–E, depending on job and employer)
• Temporary Residence Permit
  
  

EU/EEA citizens may work in Poland without a visa but must register their stay if staying over 3 months.

The employer applies for a work permit through the Voivodeship Office. Processing may take 1–2 months.

• Contracts, payslips, and filings must be in Polish
• Polish Labor Code regulates all employment relationships
• Employment documents must be stored for 10 years
  
• Online platforms used: PUE ZUS (social security), ePUAP (e-administration)
• ZUS inspections may be conducted on-site or remotely
• Payroll penalties apply for late filings or underpayments

Further Information

For more information, or assistance with Poland tax enquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.