Hiring in Poland: costs, expectations and employer obligations. A 2025 comprehensive guide for foreign investors

Hiring in a new market involves more than identifying candidates and signing employment contracts. For foreign companies entering Poland, success depends on understanding both the financial implications of employment and the regulatory framework that governs the employer-employee relationship.

This article provides an in-depth overview of what foreign investors need to know about hiring in Poland. It covers employee costs, common expectations among candidates, and the full scope of employer obligations under Polish law, as of July 2025.

Understanding Employment Costs

Hiring in Poland entails a range of direct and indirect employment costs. Gross salaries are only part of the equation. Employers are also responsible for mandatory social contributions, health insurance, and personal income tax withholding. As of July 2025, the employer’s share of social security contributions ranges between approximately 19% and 22% of gross salary, depending on the accident insurance rate, which varies by industry.

The key components of employer contributions include pension and disability insurance, accident insurance, contributions to the Labor Fund, and the Guaranteed Employee Benefits Fund. These costs are calculated monthly and remitted to the Social Insurance Institution (ZUS). Employers are also responsible for calculating and withholding employee contributions, which account for approximately 13.71% of gross pay.

In addition to contributions, employers must also consider other elements such as bonuses, overtime pay, non-wage benefits (e.g., medical insurance, sports cards), and mandatory paid leave. Salaries must be paid in Polish zloty (PLN) and transferred to employees’ bank accounts by the 10th day of the month following the payroll period.

Employment costs in Poland remain lower than in many Western European countries, which contributes to the country’s continued attractiveness for foreign investors. However, wage levels have been increasing steadily due to inflation and labor market pressure, especially in urban areas and specialized sectors such as IT, engineering, and finance.

Employee Expectations and Labor Market Trends

Polish employees have evolving expectations shaped by demographic shifts, generational change, and global employment trends. Today’s candidates place increasing value on flexibility, development opportunities, and workplace culture. While competitive pay remains important, many employees also consider remote or hybrid work options, access to training, transparent communication, and alignment with the employer’s values when choosing their next job.

Language skills are widespread among younger and urban populations. English is commonly spoken in major cities and in sectors such as finance, IT, and shared services. In addition to English, other foreign languages are also present in the Polish labor market. German is especially valued in regions with close economic ties to Germany and Austria, such as western Poland and Silesia. Russian remains useful in logistics, trade, and some industrial sectors, especially when dealing with Eastern markets. Spanish, although less common, is increasingly appreciated in international customer service roles and global shared services.

The demand for multilingual professionals is growing, particularly in global business services, BPO, and SSC centers. As a result, foreign language proficiency is often a differentiator in candidate selection and a factor in salary differentiation. Many universities in Poland offer degree programs and language courses that support the development of these competencies, and private language schools remain popular among job seekers aiming to improve their employability.

However, for blue-collar or non-corporate roles in smaller towns, Polish remains the primary language of communication, which may affect recruitment strategies.

Candidates in Poland expect formal employment contracts, timely salary payments, clear onboarding processes, and access to HR support. Delays in contract issuance, lack of information about employment terms, or poor communication during the hiring process may damage an employer’s reputation and limit access to top talent. Employer branding is therefore an essential investment, especially in competitive labor markets like Warsaw, Kraków, or Wrocław.

Turnover remains a challenge in some industries, particularly in call centers, customer service, retail, and logistics. To retain employees, companies must offer not only fair compensation but also career development plans, regular feedback, and inclusive workplace practices. In industrial roles, stability, safety, and work-life balance are often prioritized over career progression.

Employment Contracts and Forms of Employment

The most common form of employment in Poland is the standard employment contract (umowa o pracę), which is governed by the Polish Labor Code. It provides the highest level of legal protection and is favored by most employees. Employers may also use civil law contracts, such as contracts of mandate (umowa zlecenia) or contracts for specific tasks (umowa o dzieło), but these are subject to strict legal conditions and limitations.

Since 2023, regulations concerning the use of temporary and fixed-term contracts have become more stringent. Employers must ensure that successive fixed-term contracts do not exceed 33 months in total or three consecutive agreements. Exceeding these limits results in automatic conversion to a permanent employment contract.

Employment contracts must be concluded in writing before the employee begins work. They must specify the type of contract, the parties involved, the position, working hours, place of work, salary terms, and the start date. Employers are also obligated to provide the employee with additional written information on working conditions, rights, and procedures within seven days of starting employment.

Contracts should be drafted in Polish, although bilingual versions are common in international organizations. In case of legal disputes, the Polish-language version prevails.

Working Time, Overtime, and Leave

Standard working time in Poland is 40 hours per week, spread over five days. Daily working hours should not exceed eight, although flexible working time systems and individual work schedules are permitted. Employees are entitled to a minimum daily rest of 11 hours and a weekly rest of 35 consecutive hours, which usually includes Sunday.

Overtime is permitted in exceptional situations and must be compensated with either additional pay or time off. The maximum annual limit for overtime work is 150 hours per employee, unless higher limits are set in collective agreements or employment contracts. Overtime pay is subject to additional premiums of 50% or 100%, depending on the circumstances.

Employees are entitled to 20 or 26 days of paid annual leave, depending on their total length of service. Sick leave, maternity leave, parental leave, and care leave are also regulated by law. As of 2023, new EU directives have expanded employee rights to include carers’ leave and flexible working arrangements for parents and caregivers. These changes remain in force in 2025.

Public holidays in Poland are also non-working days and must be observed unless the business falls into one of the exempt categories. If a public holiday falls on a Saturday, employees are entitled to an additional day off.

Employee Records and Payroll Compliance

Employers in Poland are required to maintain detailed personnel records for each employee, including documentation related to the recruitment process, contracts, benefits, and disciplinary actions. Since 2019, personnel files may be stored electronically, provided that appropriate data protection measures are in place.

Payroll must be calculated in accordance with Polish law and processed monthly. Employers are responsible for withholding personal income tax (PIT) and remitting both PIT and social security contributions to the appropriate authorities. Electronic reporting to the tax office and ZUS is mandatory, and specific forms must be submitted according to statutory deadlines.

Payslips must be provided to employees and include all mandatory components, such as gross salary, deductions, net pay, and the breakdown of contributions. Transparency in payroll is critical, and any discrepancies can be challenged by employees through labor courts or labor inspections.

Failure to meet payroll and reporting obligations may result in financial penalties and inspections from labor authorities. Employers are also subject to audits by the Social Insurance Institution (ZUS) and the National Labor Inspectorate (PIP).

Probation and Termination Procedures

Employment contracts in Poland may include a probationary period, not exceeding three months. During this time, the contract may be terminated with shorter notice, depending on the agreement. Once the probationary period ends, termination rules become stricter.

Termination of a contract must be carried out in accordance with the Labor Code. Notice periods vary based on the employee’s length of service: two weeks for less than six months, one month for six months to three years, and three months for more than three years of service. Employers must provide written justification for dismissal in the case of indefinite-term contracts. Failure to comply with formal requirements can result in court-ordered reinstatement or compensation.

Severance pay is mandatory in some cases, particularly for dismissals due to redundancies, and must follow the rules set out in the Act on Group Layoffs. The amount of severance depends on the employee’s seniority and can range from one to three months of salary.

Occupational Health, Safety, and Wellbeing

Employers are responsible for ensuring a safe working environment and conducting regular occupational health and safety (OHS) training. Pre-employment medical examinations and periodic check-ups are mandatory and must be conducted by licensed occupational physicians. The employer covers all costs associated with these requirements.

Mental health and employee wellbeing are gaining importance in Poland. While not yet regulated in detail by law, an increasing number of companies are implementing voluntary wellbeing programs, psychological support, and mental health days. These initiatives are seen as a competitive advantage in attracting and retaining talent.

Final Thoughts

Hiring in Poland offers access to a skilled, motivated, and increasingly international workforce. The legal and administrative framework is clear but complex, requiring close attention to detail and reliable local support. Foreign investors should familiarize themselves with their responsibilities as employers and approach hiring with a long-term perspective. Transparent processes, cultural sensitivity, and compliance with local standards will position companies as attractive employers and contribute to the success of their operations in Poland.

Working with experienced HR advisors, payroll providers, or employment law specialists can help navigate the initial complexity and build a compliant foundation for growth. As Poland continues to evolve its labor market and align with EU trends, proactive and informed employers will be best equipped to compete for top talent and ensure long-term success.