Understanding compensation and benefit rights for your employees is crucial to the success of business expansion. Different countries have individual laws affecting minimum wage, bonuses, payroll rules and Poland’s are complex. Failure to contractually meet these requirements will affect the relationship with employees to the detriment of your business. Steer clear of these potential pitfalls by finding the solutions with Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) services.
What Poland Compensation Laws exist?
Almost all employees are entitled to the National Minimum Wage (NMW), including part-time, casual and agency workers. The NMW is PLN 610 for 2020 (€121) per month. Full-time employees are entitled to 20 or 26 days’ paid holiday, depending on their employment record. Statutory Sick Pay (SSP) is set at PLN 475 (€95) per week.
All employees are entitled to a workplace pension and employees who have worked for 28 weeks are entitled to be offered flexible hours.
Notice periods: One week if employed between one month and two years, one week for each year if employed between two and 12 years, 12 weeks’ notice if employed for more than 12 years.
Sick leave is paid to the employee for the first 33 days by the employer and after that by the Social Insurance Agency (ZUS) at the rate of 1/30th of salary per day for a maximum of 182 days.
Maternity and paternity leave: All contracted employees are entitled to a minimum 26 weeks’ maternity leave, six weeks of which can be taken before the due date.
Social Security in Poland
In Poland, social security consists of: old-age pension, invalidity pension, sickness and maternity insurance, insurance against accidents at work and occupational diseases, plus health insurance. In addition, Poland has a system of family benefits, social assistance benefits and unemployment benefits.
What Benefits are guaranteed in Poland?
Guaranteed benefits include:
- 13 national public holidays taken as a day off for employees
- 20 to 26 days paid leave per year, depending on length of service
- National Minimum Wage of PLN 610 (€121)
- Legislated notice periods depending on length of service
- Paid sick leave, financed initially by the employer, then the Social Insurance Agency
- Statutory maternity and paternity leave and allowances
Health Insurance and other Benefits in Poland
Mandatory employee benefits in Poland include pension (PPK), social insurance and occupational medicine (OM). Since 2019, a pension scheme is mandatory for all employers in Poland. The new law is called Employee Capital Plan (PPK) and was introduced by the government to increase savings of local nationals. The roll out of the plan was in four phases and due to be completed for all employees by May 2021.
Bonuses in Poland
Paying bonuses to employees in Poland is common and there are no strict rules around the amounts or percentages of salary. They are taxed in the same way as normal earnings. Offering ‘bonuses in kind’ by way of paid leave, fuel allowances or other inducements is a grey area and has been subject to court cases in recent years.
Work with Bradford Jacobs
Bradford Jacobs possess extensive experience dealing with compensation and benefits while ensuring compliance with Poland’s laws. Our EOR services enable you to concentrate on developing your business expansion, your employees focus on their role … we take care of all the details.