Polish Payroll Explained: How to Employ Someone in Poland
To put someone on payroll in Poland, you need a written employment contract (umowa o pracę), registration as a contribution payer with the Social Insurance Institution (ZUS), and registration of the employee with ZUS within 7 days of their start date. Each month, the employer then pays social insurance and health contributions to ZUS by the 15th, and income tax advances to the tax office by the 20th. Companies without a Polish entity can register with ZUS as a foreign payer, set up a Polish company (sp. z o.o.), or use an Employer of Record (EOR).
Employment contract, civil-law contract or B2B?
In Poland, people work under several types of contract, and only one of them is employment in the legal sense. Foreign companies are often offered the alternatives, so it pays to know the difference.
| Contract | What it is | Social insurance | Labour Code protection |
| Employment contract (umowa o pracę) | Regular employment under the employer’s direction | Full ZUS contributions | Yes: paid holiday, sick pay, notice periods, minimum wage |
| Mandate contract (umowa zlecenie) | Civil-law contract to perform services with due care | Usually full ZUS, but sickness insurance is optional; exceptions apply, such as students under 26 | No, but a minimum hourly rate applies |
| Contract for specific work (umowa o dzieło) | Civil-law contract to deliver a defined result | Generally no ZUS | No |
| B2B | The person runs their own business and invoices you | Paid by the contractor | No |
The Polish Labour Code is clear: if someone works under your direction, at a set place and time, the relationship is employment, whatever the contract is called. Labour inspectors and courts can reclassify civil-law and B2B arrangements, with back contributions as a result. This guide covers the employment contract.
Three routes for foreign companies
1. Register with ZUS as a foreign contribution payer. A company without a Polish entity can register with ZUS and employ staff in Poland directly. You then run Polish payroll, usually through a local provider, and carry every employer obligation. Check your income tax withholding duties and permanent establishment risk with a tax adviser.
2. Set up a Polish company. A limited liability company (spółka z ograniczoną odpowiedzialnością, sp. z o.o.) needs at least PLN 5,000 in share capital and is registered in the National Court Register (KRS). Using the online S24 system, registration can take just days. Ongoing accounting and reporting obligations follow.
3. Use an Employer of Record. An EOR employs the person on its Polish payroll. Poland regulates supplying workers to another company under its temporary work rules: a temporary agency must be listed in the register of employment agencies (KRAZ), and one person can generally work for the same client for up to 18 months within a 36-month period. Check how an EOR is set up in Poland and plan beyond that window.
From gross to net: a Polish payslip, line by line
Polish payroll calculates in a fixed order: social insurance first, then health insurance on what remains, then the income tax advance. Here is an illustrative month for an employee earning PLN 10,000 gross, with standard tax-deductible costs and no PPK participation.
| Step | Calculation | PLN |
| Gross salary | 10,000.00 | |
| Pension insurance (employee) | 9.76% of gross | −976.00 |
| Disability insurance (employee) | 1.5% of gross | −150.00 |
| Sickness insurance (employee) | 2.45% of gross | −245.00 |
| Base for health insurance | Gross minus social insurance | 8,629.00 |
| Health insurance (NFZ) | 9% of 8,629 | −776.61 |
| Tax base | 8,629 minus PLN 250 deductible costs, rounded | 8,379 |
| Income tax advance (PIT) | 12% of 8,379, minus PLN 300 monthly tax-reducing amount, rounded | −705.00 |
| Net salary | 7,147.39 |
On the employer side, the same salary costs about PLN 12,048 a month:
| Employer contribution | Rate | PLN |
| Pension insurance | 9.76% | 976.00 |
| Disability insurance | 6.5% | 650.00 |
| Accident insurance | 1.67% (default rate, varies by sector and size) | 167.00 |
| Labour Fund and Solidarity Fund | 2.45% | 245.00 |
| Guaranteed Employee Benefits Fund (FGŚP) | 0.1% | 10.00 |
| Total on top of gross | 20.48% | 2,048.00 |
If the employee joins PPK, the employer adds at least 1.5% and the employee at least 2%. Pension and disability contributions stop once yearly pay exceeds 30 times the projected average monthly wage. Income above PLN 120,000 a year is taxed at 32%.
Before and after day one: what Polish law requires
Before the employee starts work
- ☐ Employment contract signed in writing or electronic form, in Polish. A foreign employee can also receive a version in a language they understand.
- ☐ Pre-employment medical exam with an occupational medicine doctor, paid by the employer.
- ☐ Initial health and safety training (szkolenie BHP), always on the first day of employment.
- ☐ Work and residence permit checked for non-EU/EEA nationals.
In the first weeks
- ☐ Register the employee with ZUS (form ZUS ZUA) within 7 days of the start date.
- ☐ Create a personnel file (akta osobowe), which must be kept for the legal retention period.
- ☐ Give written information on working conditions (working hours, pay dates, leave, notice) within 7 days of the start date.
- ☐ Enrol the employee in PPK after 90 days of employment, unless they opt out in writing.
Every month and year
| Deadline | Obligation | Authority |
| Pay date in the contract, at the latest by the 10th of the following month | Pay the net salary | Employee |
| 15th of the following month | ZUS declaration (DRA) and payment of all social and health contributions | ZUS |
| 20th of the following month | Payment of income tax advances (PIT) | Tax office |
| End of January | Annual employer tax return (PIT-4R) | Tax office |
| End of February | Annual tax information for each employee (PIT-11) | Employee and tax office |
Polish rules that surprise foreign employers
- Holiday depends on seniority, including education. Employees get 20 days a year with less than 10 years of seniority and 26 days from 10 years. Education counts towards those years: a university degree counts as 8, so many graduates reach 26 days quickly.
- Fixed-term contracts are capped. A fourth fixed-term contract, or a total of more than 33 months, turns the employment into a permanent contract.
- Probation is short. Up to 3 months, and shorter if the planned fixed term is under a year.
- The employer pays the first weeks of sickness. For up to 33 days a year (14 days for employees over 50), the employer pays sick pay of 80% of the base amount for a standard illness or quarantine/isolation, and 100% in case of pregnancy, an accident at work or while commuting to or from work, an occupational disease, or medical examinations or procedures for cell, tissue and organ donors. After that, ZUS takes over.
- The minimum wage rises every year. For 2026 it is PLN 4,806 gross per month, and salaries must be reviewed against it each January.
- Young employees pay less tax. Under the relief for young people, employees under 26 pay no income tax on employment income up to PLN 85,528 a year, which payroll must apply.
Frequently asked questions
What is ZUS? Zakład Ubezpieczeń Społecznych, the Polish Social Insurance Institution. Employers register with ZUS, register each employee and pay all social and health insurance contributions to it every month.
How much does an employee cost in Poland on top of salary? Around 20.5% of gross salary in employer social insurance contributions, plus at least 1.5% if the employee participates in PPK.
Can I hire developers in Poland on B2B contracts instead? B2B is common in Polish tech, but only safe if the person works genuinely independently. If they work like an employee, the relationship can be reclassified as employment, with back contributions.
What is PPK? Pracownicze Plany Kapitałowe, a workplace savings scheme. Employers must enrol employees after 90 days of employment and contribute at least 1.5% of salary. Employees can opt out.
Can I use an Employer of Record in Poland? Yes, if the set-up complies with Polish temporary work rules. Under these rules, one person can generally work for the same client for up to 18 months within 36 months.
How Parakar helps companies hire in Poland
Parakar brings over 25 years of international HR experience and offers EOR and payroll services in Poland. We take care of the Polish employment contract, ZUS registration, monthly contributions and tax advances, PPK enrolment and year-end PIT forms. When you set up your own sp. z o.o., we can run its payroll too.
Hiring in Poland? Talk to a Parakar specialist about the right contract and route for your team.
