When you expand to Poland, you can hire through an Employer of Record (EOR) or set up your own Polish company and outsource payroll and HR, often called the PEO route. Both handle payroll, taxes and compliance, but they differ in who the legal employer is, what you need to set up and what it costs.
This guide compares the two so you can choose the right model for your situation.
Key facts
- EOREasyEOR is the legal employer. No Polish entity needed
- PEO routeYour own Polish company is the employer. We run payroll and HR for it
- Days, not monthsEOR hires can start quickly. Setting up a company takes several weeks to a month
- No co-employmentPolish labour law does not recognise joint employment, so there is always one legal employer
- About 20.5%Employer social security (ZUS) on top of gross salary, in both models
- Easy exitEnding an EOR arrangement needs no company liquidation
What “PEO” means in Poland
In some countries, a Professional Employer Organisation (PEO) becomes a co-employer alongside the client. Polish labour law does not recognise co-employment. Every employee has one legal employer.
In Poland, the PEO model therefore means your company sets up its own Polish entity, usually a limited liability company (spółka z o.o.), and outsources payroll, HR administration and accounting to a provider. Your company is the employer and carries the legal responsibility.
EOR and PEO side by side
| Employer of Record (EOR) | PEO route (own entity) | |
|---|---|---|
| Legal employer | EasyEOR | Your Polish company |
| Polish entity | Not required | Required |
| Time to first hire | Days | Several weeks to a month for incorporation, bank account, VAT and ZUS registration |
| Employer liability | Carried by the EOR | Carried by your company |
| Payroll and tax | Fully managed by the EOR | Processed for you, filed in your company’s name |
| Work permits | Applied for by the EOR as employer | Applied for by your company, with our support |
| Corporate obligations | None in Poland | Bookkeeping, VAT, corporate income tax and annual financial statements |
| Exit | End the service with notice | Formal company liquidation |
| Best for | Fast market entry, small to mid-sized teams, testing the market | Long-term presence, larger teams, local sales or invoicing |
What each service covers
Employer of Record
- Recruitment and hiring
- Employment contracts under Polish law
- Onboarding and ZUS registration
- Payroll, PIT and ZUS
- Benefits administration
- Work permits and visas
- Terminations under Polish law
PEO route
- Company set-up support
- Payroll processing
- Payroll accounting and bookkeeping
- Tax filings and reporting
- HR administration
- Benefits set-up
- Work permit support for your entity
Costs
In both models you pay the employee’s gross salary plus employer social security contributions of about 20.5%. The difference is in the service and set-up costs.
| Cost | Employer of Record | PEO route (own entity) |
|---|---|---|
| Set-up | No set-up or onboarding fees | Company incorporation from PLN 5,000, plus several weeks of set-up |
| Monthly service | From EUR 349 per employee | Payroll and HR from PLN 700 a month for up to 5 employees |
| Company running costs | None | Bookkeeping from PLN 1,100 a month, registered office, annual statements and CIT filing |
| Exit | No offboarding fees | Liquidation costs and a lengthy formal process |
For a small team, EOR is usually cheaper and much faster. As headcount grows, or when you need to invoice customers in Poland, your own entity can become the better option. See our EOR fees for full pricing.
Which model to choose
Choose EOR if you
- want to start hiring within days
- have no Polish entity and do not want one yet
- are testing the market or hiring a small team
- want the employer liability to sit with a local provider
Choose the PEO route if you
- already have, or plan to set up, a Polish company
- need to sell or invoice locally
- are building a large, long-term team
- want direct control as the legal employer
Many companies start with EOR and move employees to their own entity once the team is established. We support both stages, so the transition does not disrupt your staff.
Frequently asked questions
Can we start with EOR and move to our own entity later?
Yes. Once your company is set up, employees can move to it on new contracts. We plan the transfer so salaries, holiday balances and benefits carry over smoothly.
Is co-employment possible in Poland?
No. Polish labour law recognises one employer per employment contract. That is why the PEO model in Poland relies on your own entity.
Who handles work permits in each model?
With EOR, EasyEOR applies as the employer. With the PEO route, your company is the applicant and we prepare and file the documents for you.
Not sure which model fits?
Tell us about your plans in Poland and we will recommend the most cost-effective setup. Read more about our Employer of Record and PEO services.
Prices shown are indicative and exclude VAT. Salary costs, including employer ZUS contributions, apply in both models. This guide is general information and not legal or tax advice.
