Payroll Guide Poland
Do you need assistance with global payroll services in Poland? We are a global payroll technology partner who can introduce you to a payroll services provider from our global payroll network. We specialize in technology for Global Payroll Management and assist companies who require global payroll services as they scale into new countries.
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- Standardize their global payroll process,
- Integrate and consolidate global payroll data,
- Centrally manage their payroll with visibility & control,
Payslip would be delighted to partner with you to ensure compliant and accurate global payroll management. Get in touch today
Ease of Doing Business in Poland: An Overview
The cost of doing business in Poland is relatively low from a payroll perspective. Poland currency, the PLN, is worth .26 USD, and the average annual salary is 58,800 PLN, or $15,464. The country is a member of the European Union and is therefore subject to applicable trade agreements and economic regulations.
However, corporate tax, sales tax, and social security contributions quickly add up. These rates – 19%, 23%, and +-20.5% respectively – cut fairly deep into company profits.
Recent Developments in Poland’s Payroll Laws
Poland has introduced some important relief measures in response to the COVID-19 crisis in order to assist employers who may be struggling:
- Social security contribution payment: employees may apply for complete or partial exemption from the obligation to pay social security contributions.
- Personal income tax late-payment interest collection has been suspended
- Taxpayers may offset tax losses incurred in 2020 against taxable income declared in their 2019 tax returns
Basic Facts about Payroll in Poland
Thankfully, there are no payroll taxes in Poland. Employers may pay their employees on any schedule upon which they agree (daily, weekly, every other week, monthly, quarterly, or annually).
The most important cost consideration for employers in Poland is the nature of social security contributions. These contributions can range from 19.48-22.14% of an employee’s gross earnings.
After that, employers may come to payment frequency terms directly with their employees. It is legal in Poland to pay your employees daily, weekly, monthly, or even quarterly. Employers withhold an employee’s income and social security taxes from each paycheck, regardless of frequency.
Tax Rate Chart
Income Tax Rate
Social Security Taxes**
1 – 85,528 PLN
*The 32% tax rate only applies to annual income above 85,528 PLN. For example, an employee that makes 125,000 PLN a year pays 17% on 85,528 PLN and 32% on the remaining 39,472. Further, an employer deducts these taxes only at the time of year that the employee exceeds 85,528 PLN. Polish employees’ net pay shrinks at the latter part of the year once they’ve reached the 32% tax bracket.
Social security contributions are obligatory and payable by employers. They are financed by both employers and employees. Employers must deduct the appropriate amount from the employees’ salaries and pay the contributions to the social security office by the 15th day of the following month.
Compensation and Benefits
There is a decent amount of leeway for employees that agree to work for their employer a large number of hours during a workweek. Polish labor law does set a minimum wage, as well as overtime and minimum paid leave.
For more information about how our Global Payroll Technology integrates with local payroll providers in Poland, contact us today.
Using Payslip, we can manage all our payrolls across nine in-country vendors on one platform. When the global Covid-19 pandemic arose, it was not an issue from a payroll perspective, and critically getting everyone paid. The Payslip platform enabled continuity for our international payroll service including the fast and seamless implementation of the Payslip Employment Self Service during this time.
Payroll Manager, LogMeIn
Payslip as a technology platform has added a missing piece in our payroll set-up. As an international company with offices in 16 countries, it’s important to us that every employee at GetYourGuide has the same great experience when accessing their pay data.
At the same time, we work well with smaller local payroll providers, supporting us with direct local expertise in their countries. We were able to combine those two elements by placing the Payslip platform in the middle, to simplify reporting and communication with local providers, and to have one simple employee-facing solution across all locations.
Head of HR, GetYourGuide
With business and employee growth rates of above 50%, we rely on our vendors to deliver on time, every time. Payslip’s workflow automation, enables Phorest to manage our payroll provider process – data driven, real time and transparent. Payslip saves us time so we can focus on our business growth.
International Payroll Manager, Phorest