Poland is one of Central Europe’s fastest-growing economies and a leading destination for global hiring. With a population of over 37 million and a labor force exceeding 17 million, the country offers a large, educated, and cost-competitive workforce. Poland is especially strong in IT services, finance, manufacturing, and business process outsourcing (BPO/SSC), making it a top choice for multinational companies seeking to establish nearshore teams for Europe.

Warsaw, Kraków, and Wrocław have become key hubs for technology and shared services, hosting delivery centers for companies like Google, IBM, UBS, and Capgemini. The country produces a high number of STEM graduates each year, supported by universities such as the University of Warsaw, AGH University of Science and Technology, and Warsaw University of Technology.

However, Poland’s employment regulations are detailed and protective of workers. Payroll involves compliance with the Polish Labour Code (Kodeks Pracy), social security (ZUS), and progressive tax rates. Setting up a legal entity can take several months and requires navigating local bureaucracy, which may delay hiring.

Many companies choose to work with an Employer of Record (EOR) in Poland. With Gloroots as your partner, you can:

• Hire in days instead of months, without setting up a subsidiary.
• Stay compliant with the Labour Code and ZUS contributions.
• Offer competitive employee benefits to attract top Polish talent.
• Focus on scaling operations while Gloroots manages contracts, payroll, and compliance.

What are the key facts about Poland’s economy and workforce?

Poland is the sixth-largest economy in the European Union and the largest in Central and Eastern Europe. Over the past two decades, it has transformed from a manufacturing-driven economy into a hub for technology, financial services, and shared service centers (SSCs/BPOs). The country consistently attracts foreign investment due to its stable economy, EU membership, and cost advantages compared to Western Europe.

Key Economic Highlights

• GDP (2024): Approx. USD 850 billion, with consistent growth above EU average.
• Foreign Investment: Multinationals such as Google, IBM, UBS, HSBC, and Capgemini operate major service centers in Poland.
• Export Strengths: Machinery, automotive, IT services, and business process outsourcing.
• Startup Ecosystem: Warsaw and Kraków are emerging as tech hubs, particularly in fintech, gaming, and AI.
• STEM Talent: Poland ranks among the top in Europe for engineering and IT graduates. Its universities produce a steady pipeline of highly skilled professionals, many fluent in English and German.

For global employers, Poland combines scale, skills, and affordability. Salaries are lower than in Western Europe, yet the talent pool is highly competitive internationally.

What is the work culture and talent pool like in Poland?

Poland’s workforce is known for its discipline, technical expertise, and adaptability. Work culture traditionally leans hierarchical, with managers playing a central role in decision-making. However, in international companies and startups, flatter and more collaborative structures are increasingly common. Employees value professionalism, punctuality, and structured communication, while younger professionals embrace flexibility and innovation.

White-Collar Talent Strengths

• IT and Software Development: Poland consistently ranks among the top countries for coding and IT skills (HackerRank, TopCoder). Cities like Kraków and Wrocław are home to large IT outsourcing and R&D hubs.
• Finance & Shared Services: Warsaw, Kraków, and Łódź host global financial and SSC centers, supporting operations across Europe.
• Engineering & Manufacturing: Strong tradition in mechanical, electrical, and automotive engineering.
• Languages: High English proficiency (Poland ranks in the top 15 worldwide), with German and French also common.

Hiring Hubs in Poland

• Warsaw: Finance, consulting, and IT.
• Kraków: BPO/SSC, IT outsourcing, and startups.
• Wrocław & Poznań: Engineering and R&D.
• Łódź & Katowice: Shared services and logistics.

Q: What is the process of setting up an entity in Poland?

Establishing a legal entity in Poland is possible but involves multiple administrative steps and compliance obligations under Polish corporate and labor law. The most common legal structure for foreign companies is a Limited Liability Company (Spółka z ograniczoną odpowiedzialnością, or Sp. z o.o.).

Steps to Set Up an Entity in Poland

1. Company Name Reservation – Register with the National Court Register (KRS).
2. Draft Articles of Association – Notarized and submitted in Polish.
3. Deposit Share Capital – Minimum PLN 5,000 (~EUR 1,100).
4. Register with KRS – Legal entity creation, usually within 1–2 months.
5. Obtain Tax Identification (NIP) & Statistical Number (REGON) – For tax and reporting compliance.
6. Register with Social Security Institution (ZUS) – Mandatory for payroll and benefits contributions.
7. Open a Corporate Bank Account – For salary and tax payments.

Timelines: Setting up an entity typically takes 2–4 months, depending on document preparation and regulatory approvals.

Ongoing Obligations:

• Monthly payroll reporting to ZUS and Tax Authority.
• Compliance with Poland’s Labour Code (Kodeks Pracy) and industry-specific CBAs.
• Maintenance of local accounting and tax filings.

How Gloroots Simplifies Market Entry

With Gloroots as your Employer of Record (EOR), you can bypass entity setup. We hire employees on your behalf in as little as 2–5 days, manage payroll and social contributions, and ensure compliance with Polish labor law—allowing you to focus on building your team.

Entity Setup vs. Gloroots EOR in Poland

Q: What are the key employment laws in Poland that employers should know?

Polish employment is governed primarily by the Labour Code (Kodeks Pracy), which strongly protects employees. Employers must provide written contracts, comply with working time regulations, and respect extensive leave entitlements. Collective bargaining agreements (CBAs) may apply in certain industries, adding further obligations.

Key Employment Regulations in Poland

• Employment Contract
  • Written contracts are mandatory.
  • Types include permanent, fixed-term, probationary, and part-time contracts.
  • Must specify role, pay, working hours, and benefits.
• Working Hours
  • Standard: 40 hours per week, 8 hours per day.
  • Weekly working time (including overtime) cannot exceed 48 hours averaged over a 4-month period.
• Overtime
  • Allowed only in exceptional cases (e.g., business needs).
  • Capped at 150 hours/year unless increased by contract.
  • Compensation: +50% (weekdays) or +100% (Sundays, holidays, or nights).
• Minimum Wage (2025)
  • PLN 4,626/month (~EUR 1,070).
  • Increases annually as set by government decree.
• Maternity Leave
  • 20 weeks fully paid by Social Security.
  • Can be extended with parental leave (up to 32 weeks shared between parents).
• Paternity Leave
  • 2 weeks (100% paid), must be taken before the child’s 12th month.
• Annual Leave
  • 20 days (if employed <10 years).
  • 26 days (if employed 10+ years).
  • Education counts toward service years.
• Sick Leave
  • Employer pays first 33 days (or 14 days for employees 50+).
  • From day 34, Social Security (ZUS) pays 80% of salary.

Employment Law Snapshot – Poland

Hiring Foreign Talent in Poland: Work Visas and Immigration

Poland is a member of the European Union (EU) and the Schengen Area, which makes mobility relatively simple for EU/EEA/Swiss citizens. They can live and work in Poland without a visa, though they must register their stay if it exceeds 90 days.

For non-EU nationals, however, a work visa and residence permit are required. Poland has developed a structured system to facilitate both high-skilled professionals and short-term assignments.

Common Work Visa & Residence Options in Poland

1. National Work Visa (Type D)
   • For non-EU nationals with an employment contract in Poland.
   • Valid up to 1 year. Requires employer sponsorship.
2. Temporary Residence & Work Permit
   • Standard option for non-EU employees.
   • Valid for up to 3 years, renewable.
   • Requires proof of employment and compliance with Polish labor standards.
3. EU Blue Card
   • For highly qualified professionals with a degree or equivalent experience.
   • Requires a salary of at least 150% of the average Polish wage.
   • Provides long-term residence and intra-EU mobility.
4. Intra-Company Transfer (ICT) Permit
   • For multinational companies transferring employees to Polish branches.
   • Valid up to 3 years for managers/specialists, 1 year for trainees.
5. Business Visa (Type C Schengen)
   • For short-term stays (meetings, training). Not valid for employment.

Employer Responsibilities in Poland

• Sponsorship: Employer must obtain a work permit (zezwolenie na pracę) before the visa application.
• Labour Market Test (LMN): For some roles, employers must prove no local candidates were available.
• Registration: Employees must be registered with Social Security (ZUS) and the Tax Authority before starting work.
• Documentation: Employment contract, job description, and salary confirmation are required.

How Gloroots Simplifies Immigration in Poland

Gloroots acts as the legal employer of record, enabling foreign companies to hire talent in Poland without establishing a subsidiary. We manage:

• Work Permit Sponsorship: As the official employer, Gloroots sponsors the employee’s visa and residence application.
• End-to-End Process: From labor market test to Social Security registration, all handled by local experts.
• Employee Experience: We streamline documentation, coordinate with consulates, and provide onboarding support.
• Fast-Track Hiring: While entity setup can take months, Gloroots enables compliant hiring in just days.

Result: You gain access to Poland’s international talent market, while Gloroots handles immigration and compliance complexities.

Q: What are the risks of misclassification in Poland?

In Poland, the distinction between employees and independent contractors is closely monitored under the Polish Labour Code (Kodeks Pracy) and Social Security Act. Misclassifying employees as contractors is a common risk for foreign companies, as contractors avoid mandatory social security contributions and labor protections.

Criteria for Employee vs. Contractor Status

A worker is likely an employee if:

• The company controls working hours, location, or methods of work.
• The worker uses company-provided tools, systems, or equipment.
• The worker is economically dependent on a single company.
• The work performed is core to the company’s business.
• The company supervises or evaluates performance.

A true contractor should:

• Provide services independently.
• Invoice multiple clients.
• Control how, where, and when work is performed.
• Bear financial and operational risk.

Penalties for Misclassification in Poland

• Reclassification by Labour Courts: Contractor may be legally reclassified as an employee.
• Back Payments: Employer liable for unpaid Social Security (ZUS) contributions (19.52%–22.41% of gross salary combined employer + employee).
• Employee Entitlements: Retroactive payment of annual leave, sick leave, parental leave, and severance.
• Fines: Companies can face administrative fines of up to PLN 30,000 (~EUR 7,000) per violation.
• Reputational Risk: Potential audits and disputes that affect brand credibility.

Misclassification Risk Snapshot

‍Use our Misclassification Risk Calculator to assess your risk when hiring in Poland.

Q: How does an EOR help you run payroll in Poland?

Payroll in Poland is regulated by the Labour Code and overseen by the Social Insurance Institution (Zakład Ubezpieczeń Społecznych, ZUS) and the Polish Tax Authority (Urząd Skarbowy). Employers must comply with detailed rules on salary payments, deductions, and reporting.

Payroll Compliance Requirements in Poland

• Payroll Cycle
  • Salaries must be paid monthly, no later than the 10th of the following month.
• Mandatory Deductions
  • Income Tax (PIT): Progressive rates (12% and 32%, plus solidarity surcharge).
  • Social Security Contributions: Shared between employer and employee, covering pensions, disability, sickness, accident, health insurance, and labor fund.
    • Employer: ~20.48%–22.14% of gross salary.
    • Employee: ~13.71% of gross salary.
• Payslips
  • Employers must issue detailed payslips in Polish, showing gross pay, deductions, and net salary.
• Reporting
  • Monthly reporting to ZUS (social security) and the Tax Office.
  • Annual PIT-11 certificates issued to employees for tax filings.
• Holiday Bonus & Overtime
  • Many CBAs and public sector employers mandate extra pay elements, which must be factored into payroll.

Risks of In-House Payroll

• Incorrect filings may lead to penalties and back payments to ZUS or the Tax Authority.
• Complex contribution rules vary with salary levels and contract types.
• Employers face reputational damage if employees experience payroll errors.

How Gloroots Simplifies Payroll in Poland

As your Employer of Record, Gloroots ensures seamless payroll operations by:

• Automating Salary Payments: Employees are paid accurately and on time.
• Handling Deductions: Correct withholding of PIT and social contributions.
• Managing Filings: Monthly ZUS and tax declarations filed on your behalf.
• Compliant Payslips: Issued in Polish, fully transparent for employees.
• Integrated Benefits: Statutory and optional benefits processed alongside payroll.

Result: You avoid administrative risk and guarantee employees receive accurate, timely, and compliant pay.

Q: How does tax compliance work in Poland?

Tax compliance in Poland is structured but complex, requiring strict alignment with the Polish Tax Authority (Urząd Skarbowy) and Social Security Institution (ZUS). Employers must manage monthly payroll tax withholdings, employer contributions, and annual reporting. Non-compliance can lead to fines, back payments, and audits.

Personal Income Tax (PIT) in Poland – 2025

Poland applies a progressive personal income tax system:

• 12% – Income up to PLN 120,000/year (~EUR 27,800).
• 32% – Income above PLN 120,000/year.
• Solidarity Tax: Additional 4% on annual income above PLN 1 million (~EUR 232,000).
• Tax-free allowance: PLN 30,000/year (~EUR 7,000).

Social Security Contributions (ZUS)

Mandatory contributions fund pensions, disability, health, and unemployment.

• Employer Contributions (~20.48%–22.14% of gross salary):
  • Pension Insurance: 9.76%
  • Disability Insurance: 6.5%
  • Accident Insurance: 0.67%–3.33% (depends on sector risk)
  • Labour Fund: 2.45%
  • Guaranteed Employee Benefits Fund: 0.1%
• Employee Contributions (~13.71% of gross salary):
  • Pension Insurance: 9.76%
  • Disability Insurance: 1.5%
  • Sickness Insurance: 2.45%
• Health Insurance: 9% (partially deductible, subject to reforms).

Corporate Income Tax (CIT) in Poland

• Standard CIT: 19%.
• Reduced CIT (small taxpayers/startups): 9% (for revenues < EUR 2 million).
• VAT: 23% standard, reduced rates of 8% and 5% for certain goods/services.

Employer Compliance Duties

• Monthly PIT and ZUS filings for each employee.
• Annual PIT-11 forms issued to employees.
• Corporate CIT and VAT returns filed quarterly/annually.
• Compliance with Polish Labour Code (Kodeks Pracy) and tax deadlines.

Tax Compliance: Direct Entity vs. Gloroots EOR in Poland

Q: What benefits and entitlements do employees in Poland receive?

Poland’s Labour Code (Kodeks Pracy) provides employees with extensive statutory benefits. Employers must meet these minimum standards, though many enhance packages with supplemental benefits to stay competitive in the market.

Statutory Benefits in Poland

• Annual Leave:
  • 20 days per year (for employees with less than 10 years of service).
  • 26 days per year (for employees with 10+ years of service, including education credits).
• Public Holidays:
  • 13 per year, in addition to annual leave.
• Maternity Leave:
  • 20 weeks fully paid by Social Security.
  • Can be extended with parental leave up to 32 weeks (shared between parents).
• Paternity Leave:
  • 2 weeks (100% pay), to be used before the child turns 12 months.
• Parental Leave:
  • Up to 32 weeks, shared between both parents, paid through Social Security.
• Sick Leave:
  • Employer pays 80% of salary for the first 33 days (14 days if the employee is 50+).
  • From day 34, Social Security (ZUS) pays.
• Social Security Coverage (ZUS):
  • Pensions, disability, unemployment, healthcare, and family benefits.

Common Additional Employer-Provided Benefits

• Private Health Insurance (to supplement public healthcare).
• Life & Accident Insurance.
• Multisport Cards / Gym Subsidies.
• Meal Vouchers / Allowances.
• Transportation Allowances.
• Flexible & Remote Work Options.
• Equity Plans or Profit Sharing (in startups and multinationals).

Employee Benefits Snapshot – Poland

How Gloroots Helps with Benefits in Poland

Gloroots ensures employees receive all statutory entitlements while enabling employers to offer attractive global benefits packages. We integrate health insurance, allowances, and equity plans with payroll, ensuring seamless administration and compliance.

Q: What’s involved in hiring and onboarding employees in Poland?

Hiring in Poland is procedure-heavy and documentation-driven. Beyond a compliant contract, employers must complete medical clearances, health & safety training, and timely registrations with ZUS (Social Insurance) and the Tax Office. If you don’t have a Polish entity, Gloroots can act as your legal employer so you can hire in days while staying compliant.

End-to-end hiring & onboarding checklist (Poland)

1. Define role & pay framework
   Finalize job description, salary in PLN gross, working-time system (basic/shift/equivalent), remote/hybrid policy, and CBA applicability (if any).
2. Issue a compliant contract
   Contracts are written and in Polish (you may add an English version). Choose:
   • Indefinite term (preferred)
   • Fixed-term (statutory caps/sequence rules apply)
   • Probationary (generally up to 3 months, with specific extension rules)
     Include: pay, hours, place of work, benefits, notice, probation, IP/confidentiality, and remote-work cost reimbursement if applicable.
3. Collect statutory employee data & declarations
   Personal data, address, bank, tax residency, PIT-2 tax form, relief statements, right-to-work documents (visa/permit), and—where available—PESEL/NIP.
4. Pre-employment medical exam (badania wstępne)
   Mandatory occupational health clearance by an authorized physician before day 1.
5. Health & Safety (BHP) training
   Initial BHP training (general + workplace) must be completed before work starts; keep certificates on file.
6. Social security & tax registrations
   File ZUS ZUA to enroll the employee in social insurance within 7 days of starting. Set up payroll with correct ZUS codes and tax withholdings.
7. PPK (Employee Capital Plans) handling
   If your entity runs PPK, auto-enroll eligible employees after the statutory qualifying period (opt-out permitted); remit employer/employee contributions with payroll.
8. Benefits enrollment & equipment
   Enroll in private medical, life insurance, Multisport/meal benefits (market-norm). Handover devices and secure access. (Gloroots can procure and ship laptops/mobiles for EOR employees.)
9. GDPR/RODO compliance
   Provide privacy notices, obtain necessary consents, and implement secure processing for personnel files (A/B/C/D parts) and working-time records.
10. Onboarding & policy acknowledgment
    Deliver handbooks (code of conduct, remote-work, BYOD, data security), set objectives, and confirm policy acknowledgments.

Hiring & Onboarding: Direct Entity vs. Gloroots EOR (Poland)

With Gloroots, you get fast, compliant hiring in Poland: we manage contracts, payroll, ZUS/PIT filings, global benefits, devices for EOR employees, and airtight global compliance — so your team can focus on outcomes, not admin.

Q: How do you successfully manage a workforce in Poland?

Managing employees in Poland requires balancing strict labor law compliance with competitive HR practices to attract and retain top talent. The Polish Labour Code (Kodeks Pracy) outlines mandatory employer obligations, while market expectations often push companies to go beyond the statutory minimum.

Key Considerations for Workforce Management in Poland

1. Legal & Compliance Management
   • Adhere to the 40-hour workweek and overtime limits.
   • Maintain accurate working time records (mandatory).
   • Respect annual leave accruals and ensure timely payroll & ZUS filings.
2. Workplace Culture
   • Polish workplaces tend to be formal and hierarchical, though international companies increasingly adopt flatter, agile structures.
   • Employees value professionalism, punctuality, and structured processes, but younger professionals seek flexibility and innovation.
3. Benefits & Retention
   • While public benefits cover healthcare and pensions, private perks are now essential.
   • Private healthcare, life insurance, Multisport cards, and meal allowances are market standards.
   • Offering remote/hybrid work and equity participation is increasingly important for retention.
4. Performance Management
   • Employees expect regular feedback, training, and clear career paths.
   • Investment in language and digital upskilling aligns with global standards.
5. Employee Relations
   • Works councils and unions are active in certain industries (manufacturing, transport, public services).
   • Open, transparent communication helps maintain trust and prevent disputes.

How Gloroots Helps Manage Your Polish Workforce

Gloroots acts as a local HR partner, simplifying workforce management by:

• Ensuring compliance with the Labour Code and ZUS requirements.
• Handling payroll, contributions, and benefits seamlessly.
• Supporting employee engagement and retention with curated global benefits.
• Providing devices (laptops, mobiles) for EOR employees to enable remote/hybrid setups.
• Acting as a compliance shield so you can focus on team culture and performance.

Q: What are the key steps and requirements in terminating employees in Poland?

Poland’s Labour Code (Kodeks Pracy) provides strong protections for employees, making termination a regulated process. Employers must follow specific procedures depending on the contract type, length of service, and grounds for dismissal.

Grounds for Termination

• Termination with Notice (ordinary dismissal): Allowed for business, organizational, or performance reasons. Must follow statutory notice periods.
• Termination without Notice (summary dismissal): Permitted only for gross misconduct, loss of employee rights (e.g., driving license for drivers), or long-term illness beyond statutory limits.
• Mutual Agreement: Employer and employee agree on end date and settlement.

Notice Periods

• Based on employee’s length of service with the employer:
  • 2 weeks – less than 6 months of service.
  • 1 month – 6 months to 3 years of service.
  • 3 months – more than 3 years of service.

Severance Pay

• Applies in group or individual redundancies for business reasons (Act on Collective Redundancies).
• Amounts depend on tenure:
  • 1 month’s pay – less than 2 years of service.
  • 2 months’ pay – 2 to 8 years of service.
  • 3 months’ pay – more than 8 years of service.
• Severance capped at 15 times the minimum wage.

Probationary Periods

• Up to 3 months maximum.
• During probation, notice periods are shorter:
  • 3 working days – probation ≤ 2 weeks.
  • 1 week – probation > 2 weeks but ≤ 3 months.
  • 2 weeks – full 3-month probation.

Termination Snapshot – Poland

How Gloroots Supports Terminations in Poland

• Ensures compliance with statutory notice, severance, and redundancy procedures.
• Prepares compliant documentation and manages works council/union consultations if required.
• Processes final payroll, including unused leave and benefits settlements.
• Minimizes legal and reputational risks with structured, compliant exits.

Q: What is the offboarding process in Poland?

Offboarding in Poland requires careful alignment with the Labour Code (Kodeks Pracy) and employer obligations under the Social Insurance Institution (ZUS) and the Tax Authority (Urząd Skarbowy). Beyond ending the employment contract, employers must provide documentation, handle settlements, and deregister the employee from statutory systems.

Key Steps in Offboarding Employees in Poland

1. Formal Notice of Termination
   • Deliver written notice with reason (business, misconduct, mutual agreement).
   • Respect statutory notice periods and redundancy procedures.
2. Final Payroll Settlement
   • Pay outstanding salary up to the termination date.
   • Compensate for unused annual leave.
   • Pay any severance (if applicable) under redundancy rules.
   • Include outstanding bonuses or allowances.
3. Deregistration with Authorities
   • File ZUS ZWUA form to deregister the employee from social security.
   • Update records with the Tax Authority to close PIT withholdings.
4. Exit Documentation
   • Provide a Certificate of Employment (Świadectwo pracy) within 7 days of termination.
   • Include tenure, role, working time, and benefits information.
   • Provide PIT-11 annual tax summary in the next reporting cycle.
5. Company Assets and Handover
   • Collect devices (laptops, phones, access cards).
   • Ensure knowledge transfer of projects and responsibilities.
6. Optional Offboarding Support
   • Some employers provide outplacement programs to assist employees in finding new roles.
   • Exit interviews are recommended to maintain employer brand.

How Gloroots Simplifies Offboarding in Poland

• Ensures timely final payroll and severance settlements.
• Files all deregistration forms with ZUS and Tax Authority.
• Provides compliant Świadectwo pracy and tax documentation.
• Manages collection of company property, including devices provisioned by Gloroots.
• Reduces legal risks by ensuring terminations comply with Labour Code requirements.

Result: Offboarding with Gloroots is structured, compliant, and employee-friendly—protecting both the company and its reputation.

Q: What costs and financial planning do you need with an Employer of Record in Poland?

Hiring in Poland involves more than just base salaries. Employers must account for mandatory social contributions, benefits, bonuses, and severance liabilities. Without careful planning, the total cost of employment (TCE) can exceed gross salary by 30–40%.

Key Employment Cost Components in Poland

1. Base Salary
   • Market-competitive salaries vary by role and city.
   • Example (2025 benchmarks):
     • Software Engineer: PLN 200,000–280,000/year (~EUR 46,000–65,000).
     • Finance Analyst: PLN 150,000/year (~EUR 34,000).
2. Social Security Contributions (ZUS)
   • Employer: ~20.48%–22.14% of gross salary.
   • Employee: ~13.71% (withheld at source).
3. Mandatory Bonuses/Allowances
   • Overtime pay (50–100% premium).
   • Allowances via collective bargaining agreements (CBAs) in some sectors.
4. Paid Leave & Absences
   • Employers cover sick pay for the first 33 days (14 for 50+ employees).
   • Annual leave: 20–26 days.
5. Additional Benefits (Optional but Market-Standard)
   • Private healthcare: PLN 200–500/month per employee.
   • Multisport/gym subsidies: PLN 150–300/month.
   • Meal allowances, transport benefits, equity plans.
6. Severance Costs
   • 1–3 months’ salary in redundancy cases, capped at 15× the minimum wage.

How Gloroots Optimizes Cost Planning

With Gloroots as your Employer of Record, you:

• Pay a transparent monthly service fee in addition to employee salaries.
• Avoid unpredictable entity setup and legal costs.
• Get accurate monthly payroll forecasting with all ZUS/tax contributions included.
• Access market benchmarks to stay competitive while controlling spend.

Cost Comparison: Own Entity vs. Gloroots EOR

Q: What challenges might you face, and how do you solve them using an EOR in Poland?

Poland offers a large, skilled, and cost-competitive workforce, but employers entering the market often encounter legal and administrative hurdles. Without local expertise, companies risk delays, fines, or difficulties in attracting talent.

Key Hiring Challenges in Poland

1. Complex Labour Code
   • The Kodeks Pracy imposes strict rules on contracts, probation, leave, and termination.
   • Challenge: Foreign employers often misapply notice periods, sick pay obligations, or contract types.
2. ZUS & Tax Compliance
   • Employers must manage monthly ZUS filings, income tax withholdings, and PIT-11 annual forms.
   • Challenge: Errors can lead to audits and back payments.
3. Collective Bargaining Agreements (CBAs)
   • CBAs add extra allowances or benefits in sectors like manufacturing, transport, and retail.
   • Challenge: Difficult for new entrants to track and comply with sector-specific rules.
4. Employee Expectations
   • Market-standard benefits include private healthcare, Multisport cards, and meal vouchers.
   • Challenge: Employers unfamiliar with local practices may struggle to remain competitive.
5. Termination Complexity
   • Notice periods vary by tenure, and redundancy requires severance pay.
   • Challenge: Mishandling exits exposes employers to wrongful dismissal claims.

How Gloroots Solves These Challenges

Gloroots acts as your Employer of Record in Poland, removing complexity and risk:

• Labour Code Compliance: Drafts compliant contracts and manages statutory entitlements.
• Payroll & ZUS: Automates salary payments, contributions, and filings.
• CBA Alignment: Ensures adherence to sector agreements.
• Competitive Benefits: Provides curated global benefits packages.
• Seamless Terminations: Handles notice, severance, and documentation.

Challenge vs. Solution: Direct Entity vs. Gloroots EOR

Conclusion

Poland is one of Europe’s most strategic hiring markets, offering a large, skilled, and cost-efficient workforce with strong expertise in IT, finance, engineering, and shared services. Its location in Central Europe, EU membership, and cultural alignment with Western markets make it an ideal nearshore destination.

Yet, navigating Poland’s Labour Code, ZUS contributions, and tax regulations can be complex for foreign companies. Setting up a local entity often delays hiring and increases compliance risks.

With Gloroots as your Employer of Record in Poland, you can:

• Hire in days instead of months without opening an entity.
• Stay compliant with the Labour Code, CBAs, ZUS, and tax filings.
• Offer competitive employee benefits packages.
• Focus on scaling your business while Gloroots handles payroll, compliance, and employee management.

Gloroots makes hiring in Poland simple, compliant, and fast.

Start hiring in Poland today.

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