Payroll Outsourcing in Poland - a full payroll service
Le Cheminant has its own company in Poland since 2016 when it started to provide friendly and expert services. We employ staff on behalf of clients- so there is no need for the client to set up a legal entity in Poland. We are the legal employers of the staff (called Employees not consultants !), paying social security administered through ZUS the State Social Security Organization. We will administer any private pension, health insurance or other benefits required, Taxes are remitted to the Polish Tax Inspectorate.
Payroll Administration
Payroll Outsourcing Services provided by our Polish team include:
- Gross /Net calculations
- Payment of employees, social charges and taxes, to ZUS
- Social Security Administration
- Administration and payment of private health care providers, pension plans and other benefit providers.
- Payroll Journal, General Ledger maintenance
- Employee self service,
- Calculation and payment of taxes on cars and other BIK (Benefits in Kind) calculations,
- Employee share plan and options calculations
- Tax and social security quarterly and annual filings
Terms and Conditions of Employment
Probationary Period
The normal probationary period is max 3 months. An extension of the probationary period is not permitted.
Notice period
– depends on the type of contract and employment period with the employer:
- employment contract for a trial period:
- Three working days, if the contract is concluded for no more than two weeks,
- One week, if the contract is concluded for more than two weeks but less than three months,
- Two weeks, if the trial period is three months.
- employment contract for a definite / indefinite term and replacement contracts:
- Two weeks, if the employee has worked for the employer for no more than six months
- One month, if the employee has worked for the employer for at least six months but less than three years,
- Three months, if the employee has worked for the employer for at least three years.
Months of Salary
- There are normally 12 months of salary.
Retirement
- Men from 65 years and females from 60 years of age.
Working Hours
– Maximum is a 40 hour week.
Vacation
-20 or 26 calendar days for staff working a 40 hour week, depending on the seniority. There are 13 Public Holidays.
Maternity Leave
- starts the day of the childbirth, it is 20 weeks and 32 weeks of Parental Leave. Maternity and Parental leaves are paid from the Polish Social Security Contributions.
Sick Pay
-The first 33 calendar days in a year are to be paid by the employer. After if is paid from the Polish Social Security Contributions.
Social Security
- EMPLOYER full social contribution is from 17,48% to 20,1% of remuneration (depending on the company profile) but the part of retirement pension contributions is limited to Social Security Basis of 156.810 PLN per year.
Employers’ mandatory social charge
... is 19,48 % of gross remuneration but “capped” at a maximum of PLN 234,720 per annum. This compares to …say …46% in France, 39% in Italy, and 31% in Sweden …. Once the maximum remuneration of PLN 234,720 is reached the Employer social security rate drops to 3.22%.
The social security includes
- Disability and Pensions =16.26%
- Accident Insurance of 1.67% (minimum 1.67% maximum 3.33%
- Labour Fund 2.45%
- Benefits Guarantee Fund 0.10%
EMPLOYEES on the other hand pay 13,71% of remuneration for pension, sickness, maternity and health.
To replace an employee
– in the event of his or her justified absence from work; the employer can hire another worker under a fixed term employment contract for the period of absence.
Once a fourth fixed-term contract is signed, it is deemed that this contract has become an indefinite term contract. The employment on fixed-term contracts is limited up to 33 months.
An employment contract is concluded in writing and should be signed before an employee starts his work. In addition, an employee should be familiarized with the company’s work regulations.
All of the contract types mentioned above can be preceded by a (separate) employment contract for a trial period of no longer than three months.
Apart from the contract, written information about the basic conditions of employment must be given to the employee during the first seven days of work.
The employer social charges including pension in Poland is from 17,48 % to 20,1 % of gross salary, and the EMPLOYEE pays 13.71%.
Termination of an employment contract
In general, an employment contract can be terminated:
- By mutual agreement,
- Upon declaration by one of the parties (with or without termination notice; the second one is used for disciplinary dismissal),
- Upon expiration of the period for which the contract was concluded.
In case the contract is terminated by one of the parties, a termination notice applies (except in some cases), in particular:
- employment contract for a trial period:
- Three working days, if the contract is concluded for no more than two weeks,
- One week, if the contract is concluded for more than two weeks but less than three months,
- Two weeks, if the trial period is three months.
- employment contract for a definite / indefinite term and replacement contracts:
- Two weeks, if the employee has worked for the employer for no more than six months,
- One month, if the employee has worked for the employer for at least six months but less than three years,
- Three months, if the employee has worked for the employer for at least three years.
If Employer employs more than 20 employees, then severance has to be paid in the case of termination of the contract by Employer for reasons unrelated to the employee (liquidation of the position):
- monthly salary, if the employee has been employed with the employer for less than 2 years,
- 2-month salary if the employee has been employed with the employer from 2 to 8 years,
- 3-month salary if the employee has been employed with the employer for over 8 years.
Accounting and Company Secretarial support
Le Cheminant Poland offers a full administration service, including:
- bookkeeping,
- digital tax services,
- tax advice (individual and corporate)
- benefits consulting
- We can also lease company cars for the employees if required by our clients.
HR Outsourcing in Poland
Our Polish Company is able to offer the full range of HR services:
- Recruitment services
- Employment Contracts (usually free)
- Employment costing
- Expatriation advice and documentation
- Employee Handbooks
- Remuneration and Benefit Advice
- Social security advice and registration
- Termination advice
Vacation laws in Poland
All employees are entitled to an annual unbroken (2 weeks) vacation. An employee, who is employed for the first time in his life, gains the right to his first leave after one month of service in the amount of 1/12th of his yearly vacation leave entitlement. Employees who have had some working experience gain the right to their yearly vacation on the first day of employment.
This yearly vacation entitlement is as follows:
• 20 days – if the employee has been working for less than 10 years
• 26 days – if the employee has been working for at least 10 years.
The working period on which vacation entitlement depends on, includes time spent on education, depending on the type of finished school, e.g.:
• Basic vocational school – length of course but not more than three years,
• Secondary vocational school – length of course but not more than five years,
• Secondary school of general education – four years,
• Vocational college – six years,
• Higher education institution – eight years.
The above periods cannot be added together.
There are normally 13 days of public holiday.
Tax in Poland
There is a progressive tax scale with two income thresholds:
Gross income p.a. (PLN) Tax liability
Less than 85.528 PLN 18 % less an allowance
Over 85.528 PLN 15.395,04 PLN + 32% over 85.528 PLN
The national minimum wage for 2019 is 2 250,00 PLN per month. This minimum is usually yearly adapted by the government. Salaries for a particular month have to be paid at the latest by the 10th of the subsequent month (cash or bank transfer).