Poland's dynamic workforce is a beacon for CEOs and startups seeking skilled professionals. With expertise in IT, manufacturing, and finance, Poland offers a rich talent pool for organizational growth. The Polish labor market combines proficiency with cost-effectiveness, attracting businesses aiming for optimal resource utilization. 

Poland's commitment to education ensures a steady supply of competent professionals, crucial for innovation and advancement. With a favorable business climate and diverse talent, Poland promises sustainable growth for ambitious ventures. Seize the opportunity to thrive in Poland's vibrant economy, where talent meets opportunity for success.

What you need to know before hiring employees in Poland

Job market in Poland 

• Poland's job market is poised for significant growth, with its GDP projected to exceed 1,003.03 billion U.S. dollars by 2028. This economic upturn is supported by a history of robust growth and resilience, particularly following the global financial crisis. The economy benefits from a diverse industrial base, including key sectors like manufacturing, technology, and services, which are essential for ongoing economic expansion and job creation.

• The labor force participation has stabilized at around 73.22 percent as of 2022, indicative of a strong engagement across the workforce. Furthermore, unemployment rates have seen a substantial decrease, touching a low of 2.6 percent in 2022, showcasing effective economic management and labor market policies. This scenario offers a fertile environment for new initiatives and expansions, with a focus on industries such as machinery, electronics, and automotive manufacturing.

• With Poland's strategic geographical location and strong trade relations, particularly with major European economies, the country stands as a pivotal economic hub. Continuous investments in high-value industries and a commitment to enhancing the job market underscore Poland’s appeal as an attractive destination for business and talent development. This environment is ripe for organizations looking to leverage a skilled workforce and supportive government policies to drive successful business operations.

Poland Hiring Trends

• Poland's labor market showcases robust vitality and resilience, underscored by a notable employment rate increase to 75.4% in 2021, surpassing the EU average. This upward trajectory reflects a mature and evolving economic landscape conducive to strategic business expansions and recruitment. Despite global disruptions, the market has maintained its momentum, demonstrating strong adaptability and potential for further growth.
• The country's economic strength is particularly evident in its industry sector, with manufacturing at the forefront, along with significant opportunities in construction and the expansive services sector. These areas are ripe with potential for roles in technology, healthcare, and education, aligned with global demands for digital and healthcare advancements.
• Furthermore, the steadfast decrease in unemployment rates to one of the lowest in the EU at 2.7% by mid-2022, combined with government initiatives like the ‘Anti-Crisis Shield,’ underscore a supportive regulatory environment that fosters both economic stability and sectoral growth. Such initiatives have been pivotal in sustaining employment and supporting key industries during challenging times.
• As Poland continues to invest in technology and manufacturing, coupled with a strategic emphasis on workforce skill enhancement, the landscape is set for transformative growth. This ongoing evolution makes the market an attractive arena for forward-thinking initiatives, providing a dynamic environment for those seeking to leverage a skilled, innovative, and steadily expanding workforce.

How to hire employees from Poland 

1. Set up an entity in the country

Establishing a business entity in Poland requires choosing from various organizational forms such as Limited Liability Companies, Joint-Stock Companies, or various types of partnerships and branch offices. The process involves registration with the National Court Register, obtaining a tax ID, and, for some entities, notarizing company statutes. Essential steps include opening a bank account, meeting capital requirements, and complying with Polish corporate and labor laws. Directors must be appointed, and potentially a supervisory board, depending on the company type. Engaging legal and financial advisors is advisable to navigate these processes effectively and ensure regulatory compliance.

2. Hire independent contractors

Engaging independent contractors in Poland allows companies to address specific project needs through tailored contractual agreements. This flexibility is particularly valuable for meeting specialized skills or short-term project demands efficiently. To ensure compliance and avoid legal penalties, precise classification of workers is critical. However, companies should be mindful that independent contractors may not have the same level of allegiance as full-time employees, which necessitates strategic planning and relationship management. Adherence to Polish labor laws, tax regulations, and industry-specific guidelines is essential to minimize risks and cultivate productive professional relationships.

3. Partner with an EOR in the country

Partnering with an Employer of Record (EOR) offers a streamlined pathway into the Polish market without the complexities of establishing a local entity. This approach minimizes liabilities and proves cost-effective. Collaborating with an EOR ensures rigorous adherence to Polish labor laws, tax requirements, and regulatory obligations, significantly reducing legal risks and smoothing operational processes. Evaluating the expertise, reputation, and tailored services of prospective EOR partners is crucial to ensure a seamless and compliant entry into Poland, enabling businesses to focus on strategic growth and core operations while the EOR handles administrative and compliance functions.

Employment Laws You Must Know Before Hiring in Poland

Compliance risk while hiring in Poland

In Poland, hiring involves careful compliance to avoid misclassifying employees as independent contractors, which can lead to severe penalties. Adherence to Poland’s labor laws, tax regulations, and social security contributions is mandatory. Polish employment regulations also require strict conformity with GDPR and detailed contract documentation. Missteps can result in substantial fines. Employers must ensure accurate worker classification and familiarize themselves with local legal requirements to mitigate risks and maintain a compliant hiring process.

Key Aspects of Poland Labor Law:

Employment Contract

In Poland, while employment contracts can be verbal, the preference is strongly for written agreements to specify key terms such as the parties involved, job duration, work location, role category, compensation, working hours, holidays, and notice periods. If not initially written, the employer must formalize the contract in writing no later than the employee's first day. Although contracts often start as open-ended, fixed-term contracts are limited to 33 months or three consecutive contracts, after which they automatically convert to indefinite contracts. This transition ensures that employees receive standard benefits and severance typical for permanent roles if conditions like job duration extend beyond the agreed terms.

Working Hours

In Poland, the regular workweek is capped at 40 hours, distributed evenly across five 8-hour days.

Overtime

Overtime is mandated when employees work beyond the standard 40-hour workweek, with a ceiling of 48 hours per week and a yearly limit of 150 hours. Compensation for overtime depends on the timing: 200% of regular pay for nights, Sundays, or holidays, and 150% for other times. Alternatively, compensatory time off may be provided instead of financial remuneration.

Minimum Wage‍

The current minimum wage in Poland stands at PLN 4,242 each month. This rate is scheduled to rise to PLN 4,300 monthly starting July 2024.

Payroll laws in Poland

Employees in Poland are paid monthly, with salaries due by the 10th of the subsequent month.

Employment benefits in Poland

1. Leave Policies in Poland 

Paid Time Off:

Employees are entitled to paid annual leave, which varies by length of service. Those with less than 10 years of experience receive 20 days, while those with a decade or more get 26 days. Educational periods are included in calculating tenure. Unused vacation can be carried over but must be used by September 30th of the following year. Parents of children under 14 enjoy an additional two days off at 80% pay, which cannot be deferred to the next year.

Public Holidays:

Poland observes 11 public holidays in the year 2024.

Sick Days:

Employees in Poland receive sick leave based on their age and years of service. Those under 50 can avail up to 33 days of employer-paid sick leave annually. Beyond this period, compensation comes from Social Security (ZUS) starting the 34th day. For employees over 50, the employer covers up to 14 days, with ZUS payments commencing from day 15. Sick leave payments are typically 80% of the average earnings, unless the sickness is due to a workplace accident or occurs during pregnancy, in which case it may increase to 100%.

Maternity Leave:

Maternity leave in Poland varies with the number of children: 20 weeks for one child, increasing incrementally up to 37 weeks for five or more children. This leave is fully funded by Social Security at the employee's usual salary rate. It can commence six weeks prior to the due date and must include at least 14 weeks post-birth, with the remainder transferable to the father. Adoptive parents are also entitled to maternity leave, though it cannot be taken simultaneously by both.

Paternity Leave:

Fathers in Poland are entitled to two weeks of paternity leave, usable within the first 24 months of a child’s birth or adoption. This leave, which can be split into two one-week periods, is compensated by Social Security at 100% of the employee's regular pay. This provision ensures fathers have the opportunity to be actively involved in early childcare without financial penalty.

2. Public Health Insurance 

In Poland, public health insurance is managed by the National Health Fund (NFZ). Coverage is mandatory for all residents, including employees, who are automatically enrolled through their employer's contributions. This system ensures that all insured individuals have access to a wide range of medical services, from general practitioners to specialized treatments and hospital care. The cost of insurance is shared between employers and employees, with contributions deducted directly from salaries. Unemployed persons, students, and retirees also receive coverage, funded through government contributions or other eligible means. The NFZ oversees the provision of healthcare services, ensuring that care is both accessible and of high quality across the country.

Filing tax in Poland

1. Income Tax:

In Poland, the income tax structure is progressive, with no tax on annual earnings up to 30,000 PLN. For incomes between 30,001 and 120,000 PLN, the rate is 12%, and earnings above 120,000 PLN are taxed at 32%. This system ensures that taxation is proportionate to income, providing a balanced approach to fiscal obligations.

2. Other Tax and Social Security Contributions:

In Poland, both employers and employees contribute to payroll taxes, funding essential social security and benefit programs. Employer contributions cover areas like retirement pensions, disability, and accident insurance, while employee deductions include retirement pensions and health insurance. These contributions collectively ensure a comprehensive support system, supporting pensions, healthcare, and unemployment insurance. For a detailed breakdown of these contributions, consulting a specific guide on Polish employment costs is recommended.

Business culture in Poland 

• Polish business culture is typically hierarchical, with clear distinctions in roles and seniority. Decisions are often made at the top levels, with executives holding considerable authority.
• Interactions in the Polish business environment are formal, especially in initial meetings. This includes addressing colleagues and business partners with their professional titles unless invited to do otherwise.
• Building strong personal relationships is crucial in Poland. Trust and familiarity are important and can significantly influence business dealings. It is common for business relationships to develop through face-to-face meetings and social gatherings.
• Poles are known for their direct communication style, valuing honesty and straightforwardness in business discussions. However, they maintain politeness and expect discussions to be conducted with respect and professionalism.
• Time management is taken seriously in Poland. Being punctual is seen as a sign of respect, and schedules are expected to be adhered to. Thorough preparation for meetings and presentations is key, reflecting professionalism and reliability.

Top sectors to hire from in Poland

1. Service Sector

Dominating the Polish economy, the service sector contributed 58.16% to the GDP in 2022. This sector is vast and varied, encompassing financial services such as banking and insurance, IT services including software development and cybersecurity, and a robust tourism industry that includes hospitality and travel services. Additionally, the healthcare and education sub-sectors play crucial roles in community support and development, while retail, including e-commerce, forms a significant part of consumer interactions.

2. Technology and IT

The demand for tech professionals, such as programmers, blockchain experts, machine learning specialists, and IoT architects, is surging. By 2025, blockchain technology alone is expected to significantly expand, highlighting substantial hiring opportunities in this high-growth area.

3. Industry Sector

Accounting for 28.09% of the GDP in 2022, Poland's industrial sector is a critical component of its economic structure. Key sub-sectors include manufacturing, which ranges from automotive to electronics and consumer goods production. The chemical industry is another significant contributor, producing industrial chemicals and pharmaceuticals. Furthermore, the mining sub-sector focuses on the extraction of minerals and other natural resources, while construction activities support infrastructure development and building projects across the country.

4. Agricultural Sector

Though smaller in comparison, the agricultural sector still plays a vital role in Poland's economy, contributing 2.84% to the GDP in 2022. This sector includes agribusiness, which deals with food production and supply chain management, food processing that transforms raw agricultural products into finished goods, and sustainable agriculture that emphasizes organic farming and eco-friendly practices.

5. Software Development

 Poland is home to a burgeoning software development industry, with many global tech companies establishing research and development centers here. The demand for software developers, particularly those skilled in Java, Python, and JavaScript, remains high.

6. Cybersecurity

With the increasing importance of digital security, cybersecurity has become a critical sub-sector. Polish IT firms and multinational companies are on the lookout for cybersecurity specialists who can manage threats and ensure the safety of systems and data.

7. Data Science and Analytics

As businesses in Poland embrace big data, there's a growing need for data scientists and analysts who can interpret complex data sets to drive strategic decisions. This sub-sector offers opportunities particularly in industries like finance, retail, and telecommunications.

8. Cloud Computing

The shift to the cloud continues to accelerate, prompting a demand for professionals in cloud infrastructure, architecture, and management. This trend is bolstered by the increasing number of companies that rely on cloud solutions for scalable and flexible IT resources.

9. AI and Machine Learning

Artificial intelligence and machine learning are areas of significant investment and growth in Poland. Professionals with expertise in these fields are sought after for roles in developing intelligent systems and applications across various sectors, from automotive to healthcare.

Top cities to hire from Poland

1. Warsaw

As the capital city, Warsaw is a major economic hub with a diverse range of industries including finance, technology, and manufacturing. It hosts many multinational corporations and has a large talent pool.

2. Kraków

Known for its historic charm and academic institutions, Kraków is a popular destination for tech companies and startups. It has a strong IT sector and a highly educated workforce, with many graduates from the city's renowned universities.

3. Wrocław

With its rapidly growing economy, Wrocław is becoming increasingly attractive for businesses. It has a thriving IT and outsourcing industry, fueled by a young and dynamic population.

4. Poznań

Poznań is a key industrial and commercial center in western Poland. It has a well-developed infrastructure and a skilled workforce, particularly in sectors such as automotive, manufacturing, and logistics.

5. Gdańsk

Located on the Baltic coast, Gdańsk is a major seaport and industrial hub. It has a strong maritime industry as well as a growing IT sector, making it an attractive destination for businesses looking for skilled talent.

Hire in Poland compliantly with Gloroots

Gloroots, as an EOR in Poland, provides a comprehensive solution to the intricacies of local recruitment. Our EOR platform offers seamless onboarding processes for candidates, ensuring a swift integration into your operations while adhering to both local regulations and international standards. Tailored to suit businesses of all scales, our platform simplifies payroll management, benefits administration, and tax compliance, eliminating the necessity of establishing a local entity. This enables companies to efficiently construct and oversee remote teams in Poland. For further details on how Gloroots can bolster your hiring endeavors in Poland, please reach out to us.

Frequently Asked Questions 

What are the main legal requirements for hiring employees in Poland?

Employers in Poland must adhere to various legal requirements, including drafting employment contracts compliant with Polish labor law, registering employees with the Social Security Institution (ZUS), and ensuring compliance with minimum wage regulations and working hour limits.

What are the typical costs associated with hiring employees in Poland?

The costs of hiring in Poland include salaries, social security contributions, and additional benefits such as paid vacation and sick leave. Employers also incur expenses related to recruitment, onboarding, and potentially severance payments in case of termination.

Are there specific regulations for hiring foreign nationals in Poland?

Yes, hiring foreign nationals in Poland involves additional steps such as obtaining work permits and residence permits, depending on the individual's citizenship and the nature of their employment. Employers must ensure compliance with immigration laws and may need to provide documentation proving the need to hire foreign workers.

What are the options for outsourcing payroll and HR services in Poland?

Companies can opt for outsourcing solutions such as Employer of Record (EOR) services, which handle payroll processing, benefits administration, and compliance with local regulations on behalf of the employer. Alternatively, businesses can engage HR consulting firms or utilize specialized software for payroll management.

How can employers attract top talent in Poland's competitive job market?

To attract top talent in Poland, employers should offer competitive salaries and benefits packages, provide opportunities for career growth and development, foster a positive work culture, and promote their employer brand through effective recruitment marketing strategies. Additionally, offering flexible work arrangements and promoting a healthy work-life balance can appeal to potential candidates.

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