Employee Remuneration and Payroll Processes in Poland

Paying staff in Poland is not as simple as transferring a net amount. The Polish payroll system is built on a complex web of gross-to-net calculations, mandatory employer contributions, and strict filing deadlines. For an international business, the real challenge is the “Total Cost of Employment.” What you agree on as a gross salary in a contract is not your final cost. You must account for an additional 20% on top of the gross figure for employer-side social security and fund contributions.

Our Employer of Record (EOR) service handles the entire calculation and remittance process. We ensure your team is paid on time and your company stays clear of the tax office.

Core Components of a Polish Salary

A standard compensation package in Poland is more than just a base salary. You need to structure it correctly to remain competitive and compliant.

• Base Salary. This is the fixed monthly amount defined in the employment contract. It is always quoted as a gross figure.
• Bonuses and Premiums. Performance-based bonuses are common. We help you distinguish between a “discretionary bonus” (uznaniowa) and a “statutory premium” (regulaminowa) to avoid unexpected legal claims.
• Overtime Pay. Standard working hours are 40 per week. Anything beyond this requires additional pay or time off. Rates for night work or Sundays are significantly higher.
• Benefits in Kind. Private healthcare and gym memberships (like MultiSport) are the market standard. These are taxable benefits and must be included in the monthly payroll run.

Payroll Deductions and Taxes

The gap between gross and net salary in Poland is significant. We manage the three main deduction categories for you.

Social Insurance ZUS

Both the employer and the employee pay into the Social Insurance Institution (ZUS). This covers pensions, disability, and sickness insurance. As the employer, you bear about 20.48% in additional costs on top of the gross salary.

Health Insurance

This is a separate mandatory 9% deduction from the employee’s basis. It provides access to the public healthcare system. Since the “Polish Order” tax reforms, this is no longer tax-deductible for the employee.

Personal Income Tax PIT

Poland uses a progressive tax scale. Most employees fall into the 12% bracket, but high earners jump to 32% once they exceed the 120,000 PLN annual threshold. There is also a “Middle Class Relief” and specific tax exemptions for young professionals under 26.

The Cost of Employment 2026

The minimum wage in Poland increases regularly. You must ensure no full-time employee falls below the statutory floor. As of January 1 2026, the minimum monthly wage is set at 4806 PLN gross.

Timelines and Operational Reality

Salary payments in Poland are typically made by the end of the calendar month. Some companies opt for the 10th day of the following month, but this must be clearly stated in the workplace regulations. Missing a payment deadline is a serious offence that can lead to inspections by the National Labour Inspectorate.

By using our integrated accounting and payroll service, you benefit from a single monthly invoice in your preferred currency. We handle the conversion to PLN, pay the employees, and settle all liabilities with the Polish tax office and ZUS.