Employee Leasing in Poland
Poland offers remarkable opportunities for businesses wishing to expand their activity into Central and Eastern Europe, thanks to its location at the crossroad of important trade routes between Western and Eastern Europe. The country enjoys a highly-stable and friendly business environment, giving companies much-needed visibility into the medium and long term, as well as facilitating their integration into the Polish market.
One of the quickest and easiest ways for businesses to benefit from the potential offered by the Polish market is to expand their activity into the country through employee leasing. The services provided by FMC Group help companies enter the Polish market at reduced costs and without the need for setting up a local subsidiary in Poland. Moreover, the administrative support that FMC Group offers helps businesses focus on their growth strategy without worrying about local regulations.
Get in touch with us
- Advantages of Employee Leasing in Poland
- Employee Leasing Services Offered by FMC Group
- Advantages of the Polish market
- Recruitment in Poland
- Minimum Wage and Payroll
- Social Contributions and Taxes
- Working Hours and Overtime
- Vacation Days
- Parental Leave and Sick leave
- Other Types of Leave
- Notice Period
Advantages of Employee Leasing in Poland
- Employee leasing in Poland allows quick and easy access to one of the most thriving European domestic markets, as well as the entire markets of Central and Eastern Europe (CEE), and the EU.
- Expanding business activity in Poland through employee leasing reduces labor costs and investment risk, allowing for greater flexibility in the market entry and exit – if needed.
- Delegating the administrative management of employees to FMC Group through employee leasing lets businesses concentrate their efforts on business decisions and strategies that contribute directly to their growth.
Employee Leasing Services Offered by FMC Group
- Selecting candidates according to the client’s needs and requirements;
- Negotiating and signing employment contracts after the client’s approval;
- Paying social contributions and taxes according to Polish regulations;
- Providing accounting services that respect international standards;
- Paying all types of expenses and allowances after the client’s approval;
- Monitoring and managing paid vacations;
- Negotiating and implementing private health insurance if requested;
- Maintaining continuous and regular communication with the client regarding their employees.
Management and Reporting Flow of Employee Leasing Services
Advantages of the Polish Market
- Poland enjoys a great location in the heart of Europe. Large amounts of traffic between Eastern and Western Europe transit through Poland, as well as the traffic between Europe and China.
- Polish infrastructure networks are highly-developed and the Polish government has launched several investment programs to further improve infrastructure. The country has several international highways connecting it to Germany, the Czech Republic, Slovakia, Ukraine, Belarus, Lithuania, and Russia. Poland also counts four major maritime ports and thirteen international airports, including four that offer intercontinental flights.
- Poland has high economic growth potential and offers a friendly environment to innovative companies thanks to its large investments in research and development. The number of start-ups in Poland more than doubled between 2015 and 2020. Most Polish start-ups specialize in the sectors of artificial intelligence, machine learning, fintech, big data, and the 4.0 industry.
- Poland has a large domestic market of more than 38 million customers and gives access to the EU market, which has over 440 million consumers. Moreover, the country offers a competitive investment environment and ranks better than its neighboring countries in the CEE region in international indices such as the 2019 Global Competitiveness Index (37th worldwide and second in CEE), the 2020 Doing Business ranking (40th worldwide and first in CEE), and the 2020 Corruption Perception Index (45th worldwide and first in CEE).
- The Polish economy has been developing at a steady pace for over 25 years and it is currently the sixth-largest economy in the EU. Poland enjoys great macroeconomic stability. It has an “A2” credit rating according to Moody’s Analytics, “A-“ according to S&P Global, and “A-“ according to Fitch Ratings.
Recruitment in Poland
Minimum Wage and Payroll
- The minimum monthly gross salary in Poland is set at PLN 3,010 (EUR 648).
- Salaries in Poland are paid monthly, usually on the last working day of each month. Employees have to receive their salaries before the 10th day of the following month, or else penalties are issued.
Social Contributions and Taxes
|Pensions and Disability Insurance||16.26%|
|Employee Guaranteed Benefits Fund||0.10%|
|Employee Income Tax|
|Up to PLN 120,000 per year (EUR 25,830)||17.00%|
|More than PLN 120,000||32.00% + PLN 15,300 (EUR 3,294)|
Working Hours and Overtime
- Polish law defines the weekly limit of working hours at 40, with eight hours per day.
- In case of overtime, the maximum duration of work cannot exceed 48 hours per week. Annual overtime work also cannot exceed 150 hours.
- Overtime work is paid at a rate of 150% of the regular salary on weekdays and 200% on Sundays and public holidays.
- Time off can be given in lieu of overtime pay.
- Employees in Poland are entitled to 20 days of paid annual leave per year during their first 10 years of service for the same employer. The duration increases to 26 days for employees who have been working for the same employer for over 10 years.
- Annual leave days can be transferred to the following year and they can be taken until September 30 of said year.
- Poland commemorates 11 public holidays:
- New Year’s Day: January 1st;
- Epiphany: January 6th;
- Easter Monday: Between early April and early May (moveable);
- Labor Day: May 1st;
- Constitution Day: May 3rd;
- Pentecost: Between mid-May and mid-June (moveable);
- Corpus Christi: Between late May and late June (moveable);
- Polish Armed Forces Day & Assumption of Mary: August 15th;
- All Saint’s Day: November 1st;
- Independence Day: November 11th;
- Christmas Holiday: December 25th–26th.
Parental Leave and Sick Leave
- Female employees in Poland can take maternity leave where pay is fully covered by Social Security when giving birth or when adopting a child. The duration of the leave depends on the number of children born or adopted: 20 weeks for one child, 31 weeks for two, 33 weeks for three, 35 weeks for four, and 37 weeks for five or more. In case of adoption, the leave can be transferred to the father as well, but it cannot be taken by both parents simultaneously.
- New fathers can take two weeks of paid paternity leave within the first 24 months of their child’s birth or adoption. The vacation, however, has to be divided into two installments of one week each, or into shorter leaves. Social Security covers 100% of the employees’ salaries during paternity leave.
- After the end of maternity and paternity leaves, employees are entitled to 32 weeks of parental leave to care for their children. Social Security covers pay for the entire duration of parental leave at a rate of 100% in the first six weeks (or eight weeks in case of multiple children), and then at 60% for the remaining duration.
- Employees in Poland who are less than 50 years old are entitled to 33 days of paid sick leave per year, covered at a rate of 80% by the employer. If the leave exceeds 33 days, its pay becomes covered by Social Security.
- For employees who are more than 50 years old, only the first 14 days of paid sick leave are covered by the employer, while the remaining duration is paid for by Social Security.
- The pay rate during sick leaves increases from 80% to 100% if the illness occurs during pregnancy or is caused by an accident at work or on the way to and from it.
Other Types of Leave
- Employees with special needs are entitled to 10 extra days of annual paid leave after one year of service.
- Employees with a child less than 14 years old are entitled to two additional days of annual paid leave.
- Employees with a child less than five years old are entitled to up to three years of unpaid childcare leave. The same unpaid leave is available for parents of a child with disabilities until they are 18 years old.
- Employees can take two days of paid leave for special events such as weddings or funerals.
- New employees with less than six months of work for the same employer have to give a two weeks’ notice.
- Employees who have been working for the same employer for between six months and three years have to give a one-month notice.
- Employees who have been working for the same employer for more than three years have to give a three months’ notice.
Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.