Easily manage employment in Poland

Payroll services in Poland

Poland has a strong economy with key industries in manufacturing, technology, and finance. With specific labour laws and tax regulations, employers in Poland must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Poland

Employers in Poland must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Poland’s minimum wage is PLN 4,242 per month.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Poland is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated at 150% of the regular wage for extra hours and 200% for work on public holidays.

Taxation and social security contributions

• Personal income tax: Poland has a progressive income tax system with rates of 12% and 32% depending on income levels.
• Employer contributions:
• Social security: Approximately 19.48% of the gross pay.
• Health insurance: 9% of the gross pay.
• Employee contributions:
• Social security: Approximately 13.71% of the gross pay.
• Health insurance: 9% of the gross pay.
• Corporate tax: The corporate income tax rate in Poland is 19% (or 9% for small businesses).
• Tax reporting: Employers must file payroll taxes and contributions with the Polish Tax Office (KAS) and the Social Insurance Institution (ZUS) regularly.

Payroll compliance in Poland

• Employment contracts must be provided in writing and specify terms such as pay, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security, health insurance, and income tax.
• Employers must stay updated on changes to Poland’s labour laws and tax regulations to avoid penalties.

Run payroll in Poland with Remote

Managing payroll in Poland requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.