Poland

The standard working week in Poland can be no longer than 40 hours per week, eight hours per day.

Overtime

If work time limits are passed, overtime compensation is compulsory. The maximum number of overtime hours is 48 hours per working week. Annual overtime cannot exceed 150 hours.

Overtime is due after working the maximum hours of 45 hours per week and is paid at the statutory rate of 200.00% of the employee’s regular pay if the overtime is at night, on Sundays, or on non-working days. Overtime is paid at 150.00% of the employee’s regular income if overtime is performed during any other time. Overtime can also be given as time off in lieu.

Remote Work

The amendment to Article 67[33] -1 of the Labour Code, remote work and hybrid work as of 7 April 2023 ruling of performing remote work, including:

The employer is obligated to roll out an agreement with a company trade union organization through regulations for performing work remotely. There are several options for how to create a plan with workers:

• The possibility of controlling the conditions in which remote work is performed

• The employer’s obligation to provide appropriate equipment and training, including occupational health and safety information and security and protection.

• Issuing a cash equivalent to cover upfront costs of organizing the workplace; i.e. work from home allowance

• The possibility of reimbursing the costs of organizing the workplace if covered by the employee

• Possibility for the employees to request occasional remote work – for a period no longer than 24 days in the calendar year

Maternity Leave

Female employees are entitled to maternity leave periods linked to the number of children born/adopted as follows:

• 20 weeks for the birth of one child/adoption of one child

• 31 weeks for two children, 33 weeks for three children, 35 weeks for four children

• 37 weeks for five or more children

The Social Security Institute covers all maternity pay at 100% of the employee’s regular salary rate.

Maternity leave cannot start earlier than six weeks before the due date but can start later or even after birth and continue straight after. Employees should take a minimum of 14 weeks of maternity leave after childbirth before returning to work, and they have the option to transfer any untaken leave beyond 14 weeks to the child’s father.

Adoption leave may be used by both the adoptive father and the adoptive mother. However, under the labor code, the leave can’t be taken simultaneously by both parents.

Paternity Leave

Fathers are entitled to two weeks of paid paternity leave within the first 24 months after the child’s birth or from the date of adoption before the child is seven years old. An employee can take the leave in a maximum of two installments of one week each, and Social Security pays the leave at a rate of 100.00% of the employee’s regular salary.

Parental Leave

In Poland, the parental leave period spans either 41 or 43 weeks. The duration of parental leave hinges on the number of children born or adopted at once, and it’s available to both male and female employees as well as adoptive parents upon the completion of maternity leave.

Parents have the flexibility to divide this leave according to their preferences, but each parent has an exclusive right to a 9-week portion. For instance, if the child’s mother opts to utilize the entire parental leave, she can claim a maximum of 32 weeks, leaving the remaining 9 weeks exclusively for the other parent. It’s important to note that regulations do not permit the transfer of the extra 9 weeks to the other parent, such as in cases of single parents raising children.

Parents also have the option to take parental leave concurrently, meaning both parents can be on leave at the same time, provided that the total leave taken doesn’t exceed the standard entitlement. Additionally, parental leave can be split into a maximum of 5 segments and must be utilized by the end of the calendar year in which the child reaches the age of 6.

To initiate parental leave, employees must submit an application at least 21 days before the intended start date. These applications can be submitted in either written or electronic form.

During the initial six weeks (eight weeks in the case of multiple children or three weeks for adopting older children), the leave is paid at 100% of the employee’s salary. Subsequently, for the remaining duration, it’s covered by Social Security and paid at 60% of the employee’s salary. However, if the employee submits an official written request for parental leave no later than 21 days after the child’s birth, the pay rate increases to 80% of the employee’s salary, and Social Security covers it for the entire leave period.

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types for the following:

Disability Leave: A person classified as having a severe or moderate degree of disability is entitled to an additional ten days of annual leave. After working one year and after being classified in one of the above degrees of disability, the person acquires the right.

Military Leave: Employees are entitled to unpaid military leave to perform their duties.

Childcare Leave: An employee raising at least one child aged up to 14 years is entitled to two paid days off a year, covered in full by the employer. Additionally, employees who have worked for at least six months are entitled to a further three years of unpaid childcare leave until the child is five-years-old (18-years-old if the child is disabled).

Special event leave: Employees are entitled to two paid days off for close family member life events, such as a wedding, a child’s birth, or a funeral.

Poland has universal healthcare. Many employers provide private health insurance as an employee benefit.

Employer Employer Payroll Contributions

9.76% - Retirement Pension (applied on salary up to 234,720.00 PLN annually)

6.50% - Disability Fund (applied on salary up to 234,720.00 PLN)

0.67% – 3.33% - Accident Fund

2.45% - Labor Fund

0.10% - Guaranteed Employee Benefits Fund

19.48% – 22.14% - Total Employment Cost

Employee Employee Payroll Contributions

9.76% - Retirement Pension (applied on salary up to 234,720.00 PLN)

1.50% - Disability Fund (applied on salary up to 234,720.00 PLN)

2.45% - Sickness Fund

9.00% - Health Insurance

22.71% - Total Employee Cost

Employee Income Tax

0% - 0-30,000 PLN annually

12.00% - 30,001 -120,000 PLN annually

32.00% - Over 120,000 PLN annually

Payroll Cycle

Salaries are paid on a monthly basis and employees must receive their salary no later than the 10th of the following month.

13th Salary

There is no legal requirement for 13th-month payments.

Authority Payments

Authority Payment Paid To Due Date Method

Urząd Skarbowy (Tax Office) - PIT-4 - 20th day of each month - Wire transfer

Social Insurance Institution - ZUS - 15th day of each month - Wire transfer

National Disabled Persons Rehabilitation Fund - PFRON - 20th day of each month - Wire transfer

The standard rate of VAT in Poland is 23%.