Hiring in Poland as a US Company: What You Need to Know
A US company can hire employees in Poland by registering a local entity (usually a Sp. z o.o.), using an Employer of Record (EOR), or using Non-Residential Payroll (NRP) to run compliant payroll while staying the legal employer itself. Entity registration can take several weeks and may take longer depending on the setup process, while also bringing ongoing filing obligations. An EOR is the quickest path, often live within days, while NRP registration typically takes around 6–8 weeks.
Polish employment law leans on a national Labour Code rather than sector-wide bargaining agreements, and employer costs typically add roughly 19-22% on top of gross salary through Poland’s ZUS social security system.
Poland has become one of the go-to destinations for US companies hiring engineering, IT, and finance talent in Central Europe. It has a deep technical talent pool, competitive salary expectations relative to Western Europe, and a legal system that, while different from the US, is more predictable than some might expect. The catch is that “predictable” doesn’t mean “similar.” Polish labour law still requires a genuinely different playbook than hiring in the US. Here’s what a US company needs to understand before extending an offer to someone in Poland.
Three routes to employing someone in Poland
Register a Polish entity
The standard vehicle for a US company setting up shop in Poland is the Sp. z o.o. (spółka z ograniczoną odpowiedzialnością), roughly equivalent to an LLC. Formation typically takes 4-6 weeks and requires a minimum share capital of 5,000 PLN. The real cost of an entity isn’t the setup itself. It’s the ongoing commitment of local tax filings, statutory bookkeeping, and a registered Polish address that persist whether you employ one person or fifty.
Bring in an Employer of Record
An Employer of Record arrangement in Poland lets your company skip entity registration entirely. The EOR is legally listed as the employer, taking on the employment contract, payroll processing, and statutory contributions, while your company directs the person’s actual day-to-day work. For US companies still testing whether Poland is the right market this route can go from signed offer to first payslip in a matter of days rather than months.
Run payroll through NRP without giving up the employer role
If your company wants to remain the named legal employer but doesn’t want to build a Polish payroll and compliance function from scratch, Non-Residential Payroll (NRP) is the middle path. Your company registers as a foreign employer, and a local partner runs payroll, tax withholding, and statutory filings on your behalf, you keep the employment relationship, they keep the administrative burden.
NRP does require careful consideration of the employee’s role and activities. Commercial positions, such as sales roles, may create additional tax exposure for the foreign employer because the employee is carrying out revenue-generating activities in Poland. In those cases, NRP may not be the most suitable structure and the employment setup should be assessed before hiring.
What Polish employment law expects from an American employer
Poland’s Labour Code (Kodeks pracy) is the primary rulebook. Unlike France or Italy, sector-wide collective agreements are far less common here, so the national code does most of the heavy lifting. A few points that tend to surprise American employers:
- Fixed-term contracts have hard limits: Poland caps fixed-term employment at a maximum of 33 months across no more than three consecutive contracts. Beyond that threshold, the relationship automatically converts into an indefinite contract.
- Notice periods scale with tenure, not performance: For indefinite contracts, statutory notice runs from two weeks (under six months of service) up to three months (after three years), regardless of how the working relationship is going.
- Sick pay starts with the employer: For the first 33 days of illness in a calendar year (14 days for employees over 50), the employer pays 80% of remuneration directly; after that, Poland’s social insurance institution (ZUS) takes over.
- Termination requires a documented reason for both indefinite and fixed-term contracts: Polish law doesn’t recognize at-will dismissal. An employer letting someone go needs a valid, stated justification, and certain categories of employees (such as those nearing retirement) carry extra protection.
- Annual leave depends on total work history, not just tenure at your company: Employees with under 10 years of combined work experience get 20 days of paid leave annually. Those with at least 10 years get 26 days. Previous employment and qualifying periods of education can both count toward that threshold.What hiring in Poland actually costs
Gross salary is only the starting point. A realistic budget for a Polish hire includes:
| Cost element | Typical figure |
| Employer ZUS social security contributions | 9-22% of gross salary |
| Entity registration (if choosing that route) | 5,000 PLN minimum capital, plus legal and admin costs |
| Sick pay (employer-funded portion) | 80% of salary, employer-paid for the first 33 days per year |
| Payroll and compliance administration | Included in EOR/NRP fees, or built in-house |
Compared to some Western European markets, Poland’s employer contribution rate sits on the lower end. However American finance teams still routinely forget to model it in at all, treating gross salary as the full cost of the hire.
Is an office necessary to hire in Poland?
It isn’t. Nothing in Polish law requires a US company to hold physical office space in order to employ someone there. It is a strategic choice, not a legal prerequisite. Companies hiring through an EOR or NRP arrangement can build a fully remote Polish team without ever signing a lease.
Where a presence does help is on the recruiting side. Some candidates and clients still associate a local address with long-term commitment to the market. But if the immediate goal is simply hiring the right people, that’s a branding decision to make later, not a blocker today.
Parakar’s role for American companies hiring in Poland
Parakar operates as a European Employer of Record, payroll, and HR partner across 10 EU markets, Poland included. For a US company, working with Parakar means:
- A single point of contact across Poland and any other European market you’re expanding into
- Contracts and payroll built around the Polish Labour Code from the first day of employment
- Both EOR and NRP models available, depending on how much of the employer role you want to keep in-house
- Local guidance on notice periods, sick pay, and termination, so nothing gets missed between the Polish rulebook and your US HR playbook
Whether you’re hiring one developer in Warsaw or building out a full delivery team, Parakar manages the compliance layer so your team can focus on the work.Thinking about your first hire in Poland or scaling a team that’s already there? Talk to our experts about Employer of Record and Non-Residential Payroll options across Poland and 9 other European markets.
Frequently Asked Questions
What’s the fastest way for a US company to hire in Poland?
Using an Employer of Record (EOR) is typically the fastest option, since it avoids entity registration entirely and can have someone employed within days.
How long does it take to register a company in Poland from the US?
Setting up a Sp. z o.o. typically takes around 4-6 weeks, covering registration, notarization, and opening a Polish business bank account.
Does a US company need a Polish entity to run payroll there?
No. Non-Residential Payroll (NRP) allows a US company to register as a foreign employer and run compliant Polish payroll without setting up a local entity, while remaining the legal employer.
Is an office required to hire employees in Poland?
No. Polish law doesn’t require a physical office to employ someone in the country. Remote hiring through an EOR or NRP is fully compliant.
How much do employer costs add to a salary in Poland?
Employer-side ZUS social security contributions typically add around 19-22% on top of gross salary, plus any employer-funded sick pay during the first 33 days of an employee’s illness.
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