Payroll in Poland: Understanding Tax, Labor Law, and Work Visas

Poland has a growing economy, making it an attractive destination for businesses looking to expand their operations. However, understanding the payroll process in Poland can be complex, as there are many regulations and laws that must be followed. In this blog, we will discuss three key areas that businesses need to be aware of when establishing payroll in Poland: tax, labor law, and work visas. By the end of this blog post, you will have some understanding of the labor laws in Poland and how they affect employers and employees.

Tax Obligations in Poland

The Polish Tax Office is responsible for collecting taxes in Poland and ensuring that businesses comply with all tax obligations. Businesses must register with the Tax Office and obtain a Tax Identification Number (NIP) in order to operate in Poland. Additionally, all employees must have a unique identification number (PESEL), which is used to track their tax obligations.
Polish tax law requires businesses to withhold income tax and social security contributions from employees’ salaries. The amount of income tax withheld depends on the employee’s tax bracket, and social security contributions are calculated as a percentage of the employee’s gross salary. The contributions are divided into two parts: one for the employee and one for the employer.
In addition to the above taxes, businesses must also pay a third levy known as PFRON, which is calculated based on the company’s gross payroll. This levy is used to provide support services to the disabled and is payable once the company’s workforce reaches 25 employees.

Labor Laws in Poland

Give us a call to explore labor laws in Poland and how they affect employers and employees. We will discuss the different types of labor contracts, the rights and obligations of employers and employees, as well as the various labor laws that must be followed in order to ensure a safe and fair working environment. We will begin with a brief overview of the labor laws in Poland, which are mainly contained in the Labor Code of Poland. This code governs all aspects of the employment relationship, including the types of contracts that can be used, the duties and rights of employers and employees, and the procedures for resolving disputes.

Next, we will explore the different types of labor contracts that can be used in Poland. The most common are fixed-term contracts, open-ended contracts, and part-time contracts. We will discuss the advantages and disadvantages of each, as well as the legal implications that come with each type.

Following this, we will look at the rights and obligations of employers and employees. This includes the right to a minimum wage, vacation and sick leave, and protection against discrimination and unfair dismissal. We will also discuss the various labor laws that must be followed, such as the Working Time Act, the Minimum Wage Act, and the Health and Safety at Work Act.

Finally, we will consider the procedures for resolving disputes between employers and employees. This includes procedures for filing complaints, seeking remedies, and making appeals.

By the end of this call, you will have a comprehensive understanding of the labor laws in Poland and how they affect employers and employees.

In order to comply with Polish labor laws, businesses must also have a good understanding of the Polish Social Insurance Institution (ZUS) and its role in administering social security contributions. ZUS is responsible for collecting contributions from both employees and employers, and businesses must make a full return of earnings and contributions each month using a government-issued software program called Platnik.

Work Visas in Poland

For foreign workers looking to work in Poland, it is important to have a good understanding of the work visa requirements. Businesses must ensure that their employees have the necessary documentation to work legally in Poland, including a work visa if they are not a citizen of the European Union. The requirements for obtaining a work visa in Poland can be complex, and businesses should seek professional advice to ensure that they comply with all regulations. Which we of course can assist you with! Do not hesitate to give us a call.

We enable you to hire staff from anywhere in the world within 24 hours in Poland.