How Much Does It Cost to Hire an Employee in Poland?

Consider these costs when hiring from Poland

With the shift to remote working, companies across the globe are increasingly seeking top-tier, remote talent beyond the corporate HQ. If you’re looking to expand into Central Europe, Poland is a great choice, thanks to its proximity to other prosperous European nations and a highly educated workforce. 

What’s more, Poland operates in a Central European time zone and shares this with many countries in Europe, from Albania to Vatican City, and even some African countries including Morocco, Tunisia, and Algeria. This makes remote global work a no-brainer for Poland-based employees looking to integrate seamlessly into meetings and day-to-day business operations.

When it comes to hiring Polish talent, salaries aren’t the only monetary consideration to factor into your budget. It is important to consider the costs of setting up an employment package which can include things like taxes, social security contributions, overtime and vacation pay, stipends, and benefits.  

Let’s analyze the costs of hiring an employee in Poland. This includes mandatory and optional expenses, helping you expand your global reach without increasing hiring costs. 

Costs to Consider When Hiring Around the World

The basic hiring costs in Poland include: 

• Employee’s gross salary 
• Taxes and benefits
• Vacation pay and other leaves 
• Overtime pay 
• Severance pay 

Plus, you may want to add certain optional costs like benefits, bonuses, and extras.

Mandatory Costs of Hiring in Poland

Mandatory hiring costs are non-negotiable expenses when hiring remote, Polish talent. Proper accounting of salaries, taxes, overtime pay, and vacation pay is essential. Otherwise, you may risk non-compliance with local labor laws and regulations. 

Salary

Poland is home to a highly educated workforce, due to its close proximity to many top-tier universities across Europe coupled with free tuition. Poland also houses a broad talent pool of qualified engineers and scientists, thanks to a booming aerospace sector which has prompted many companies to open local research and development centres. The minimum wage in Poland is PLN 3490 per month ($823.06 USD), though salaries will vary greatly among industries and job types. To offer a competitive salary, employers must consider the type of job they are offering and the skillset required for success.

Taxes and Benefits

Employers in Poland pay 19.21% - 22.41% in payroll taxes on top of an employee's gross salary. This money is put towards:

• Pension Fund: 9.76%
• Disability Insurance: 6.5%
• Accident Insurance: 0.67% - 3.33%
• Labor Fund: 2.45%
• Bankruptcy Fund: 0.1%

Paid Leave

There are several types of paid leave entitlements in Poland. 

• Public holidays: There are 13 public holidays in Poland. 
• Paid time off: Full-time employees are entitled to up to 20 days of annual leave. Employees who have worked 10+ years are entitled to 26 days. 

• Sick leave: Polish employees can take up to 33 days of sick leave.

• Parental leave: New mothers are entitled to 52 weeks of maternity leave. New fathers raising the children can take up to two weeks or 32 weeks of parental leave.

Overtime Pay

Working hours in Poland are typically 8 hours per day, 40 hours per week. Monday through Friday is the standard workweek. Employees can work up to 5 hours of overtime per day. Employees are permitted to work up to 48 hours of overtime per week and 150 hours per year. 

Employees are paid in addition to their regular wage for working extra hours:

• Employees who work at night, on Sunday, or on a public holiday receive 200% of their normal rate for overtime
• All other cases of overtime result in employees receiving 150% of their normal wage

Severance Pay

In Poland, severance pay should always be included in the employment contract. When the employer initiates the termination, severance usually becomes applicable. 

Severance pay is equivalent to three months' salary for employees who have worked for the company for more than eight years. Severance pay is two months' pay for employees who have been with the company for two to eight years. Severance pay is one month's salary for employees who have been with the company for less than two years.

Optional Costs of Hiring in Poland

When the world is your competition, it pays to incentivize new and existing hires with attractive supplementary benefits like medical, dental, vision, life insurance, retirement savings plans, and other stipends and perks. 

When you offer attractive supplementary benefits, you are boosting morale and increasing retention which in turn lowers onboarding costs and helps you establish a strong, remote team you can rely on. 

Bonuses and Extras

There are no mandatory bonuses in Poland, but many employers offer performance bonuses. 

Average Cost of Hiring 

Below is an estimated cost of hiring one employee in Poland based on a salary of $100,000. This salary is designed to make it easier to calculate average costs and doesn’t represent actual average salaries in the country. The actual salary will vary depending on your hiring goals. 

Typical benefits may include private health, life, and business travel insurance or other perks like subsidized gym memberships. 

Work with Borderless

Growing your remote, global team and hiring Polish talent can seem overwhelming, especially when you consider all the associated costs. Leave the headache to Borderless. An Employer of Record (EOR) like Borderless will handle all the administrative work, ensuring compliance and giving you cost savings, so you can focus on growing your business.  

To get started, book a demo today.