The Cost of Hiring an Employee in Poland – What You Need to Know in 2025

Hiring an employee is a significant challenge for entrepreneurs – both financially and organizationally. The gross salary is only a part of the expenses a company must bear. In 2025, the total cost of hiring an employee includes social security contributions, Employee Capital Plans (PPK), and various additional costs. Moreover, the increase in the minimum wage will further strain company budgets. So, what will the real cost of employment look like? How do different types of employment contracts compare? Discover what you need to know about the cost of hiring in 2025.

What Makes Up the Cost of Employment in Poland in 2025?

The amount an employer must allocate when hiring an employee consists of several cost components. The largest of these is, of course, the gross salary, from which ZUS contributions and income tax prepayments are deducted. However, that’s not all. 

The full cost also includes: 

• Social and health insurance contributions – financed by both the employee and employer;
• PPK contributions – mandatory for companies participating in the program;
• Indirect costs – such as medical examinations, health and safety training, workstation setup, and employee benefits;
• Salaries during absences – such as holidays, sick leave, and replacements.

All these elements affect the total cost of employment. It’s also important to consider recruitment expenses. Hiring the right candidate may involve job advertisements, application screening, and time spent on interviews. If using an HR agency, employers should expect to pay a commission, which typically ranges from a few hundred to several thousand zlotys. In return, companies gain access to vetted professionals – a time-saving investment that reduces the risk of a bad hire. 

Minimum Wage Increase and Its Impact on Employment Costs in Poland

In 2025, the minimum wage rises to PLN 4,666 gross per month, creating additional financial obligations for companies employing workers at the lowest pay levels. This change also affects social security (ZUS) contributions, pushing the total cost of employing a minimum wage earner to over PLN 5,621 per month. 

Compared to 2024 – when the minimum wage was PLN 4,242 gross in the first half of the year and PLN 4,300 gross from July – this represents a 10% increase from January 2024 and an 8.5% increase from July. This results in about an 8% rise in total employment costs for minimum-wage employees compared to mid-2024. 

Furthermore, increases in the minimum wage often lead employers to adjust salaries across the board to maintain internal pay equity. This also raises the base for calculating insurance contributions, leading to broader cost increases – even for companies not employing workers at minimum wage levels.

Employment Costs by Contract Type

The type of employment contract significantly affects total costs. Whether a company chooses an employment contract, a contract of mandate, or a contract for specific work, the associated expenses differ.

Employment Contract

An employment contract offers the most stability but is also the most expensive option for employers. In addition to gross salary, companies are responsible for several mandatory contributions:

• Pension contribution: 9.76%
• Disability pension: 6.50%
• Accident insurance: approx. 1.67% (varies by industry)
• Labour Fund: 2.45%
• Guaranteed Employee Benefits Fund: 0.10%

If the employee is enrolled in PPK, employers must contribute additional funds, increasing total costs. On average, the total cost of employing someone exceeds the gross salary by 20–30%.

Employers are also responsible for paid holidays, sick leave, and additional benefits like private healthcare and gym memberships.

Example: For an employee earning PLN 5,000 gross per month, the total cost to the employer is approximately PLN 6,075 – though this can vary by sector and benefits offered.

Contract of Mandate

A contract of mandate provides more flexibility and is often used for non-standard forms of cooperation. However, in most cases, mandatory ZUS contributions still apply:

• Pension
• Disability
• Accident insurance
• Labour Fund
• PPK (if applicable)

If the contractor has no other insurance title (e.g., another job), the cost to the employer becomes similar to that of a standard employment contract.

Exception: For contractors who are students under 26, no ZUS contributions are required, meaning the employer only pays the agreed gross salary – making this a much cheaper option.

Contract for Specific Work

This form of cooperation is often used in creative fields. It is the least expensive option, as it is typically not subject to social or health insurance contributions. The entire gross amount is the total cost for the employer.

Example: A contract for specific work with a gross value of PLN 5,000 costs the employer exactly PLN 5,000 – no extra contributions apply.

How to Choose the Best Employment Form?

In 2025, employment costs vary depending on the contract type, salary level, and required contributions. Employers should analyze which contract best fits their needs.

• Employment contracts offer security but are costly.
• Contracts of mandate allow for flexibility but usually involve ZUS contributions.
• Contracts for specific work minimize costs but offer no social protections.

The decision should balance company needs with employee expectations.

Key Takeaways on Employment Costs in 2025

Due to rising minimum wages and mandatory contributions, employment will be more expensive in 2025 than in previous years. Employers must prepare for increased costs that go beyond gross salaries and include social and health insurance, PPK contributions, and other labor-related expenses.

Choosing the right contract type has a significant impact on the company’s finances. Every form of employment carries different obligations and cost levels.

Before hiring, conduct a thorough financial analysis, taking into account both direct and indirect costs (e.g., training, equipment, medical checks). A well-planned employment strategy can help optimize spending without risking the loss of valuable talent.