Severance pay in Poland (odprawa) is not due on every termination. It depends on why the employment ends and on how many people you employ in Poland.
For international companies, getting this wrong during a restructuring or market exit leads to unbudgeted costs and labour court claims. This guide sets out what the law requires and what it will cost.
Key facts
- 20+ employeesStatutory severance only applies to employers with at least 20 employees
- 1 to 3 months’ payDepending on length of service with your company
- PLN 72,090Maximum in 2026, 15 times the minimum wage of PLN 4,806
- No ZUSExempt from social security contributions, income tax applies
- Employer’s reason onlyNot due on resignation, dismissal for fault or end of a fixed-term contract
- Plus notice paySeverance comes on top of the notice period and unused holiday
When severance is due
Statutory severance applies when employment ends for reasons not concerning the employee. For an individual redundancy, that reason must be the only reason for the termination.
Severance is due
- Redundancy after restructuring or a role being removed
- Liquidation of the Polish business
- Bankruptcy of the employer
- Termination by mutual agreement at the employer’s initiative, for one of these reasons
- The employee rejects new terms offered in an amending notice (wypowiedzenie zmieniające) given for one of these reasons
Severance is not due
- The employee resigns
- Dismissal for performance, conduct or disciplinary reasons
- A fixed-term contract reaches its end date
- Mutual agreement initiated by the employee
The 20-employee threshold
This is the rule foreign SMEs most often miss. Statutory severance only applies to employers with at least 20 employees in Poland when notice is given.
- Only people on employment contracts (umowa o pracę) count, including part-time staff.
- B2B contractors and civil-law contracts (umowa zlecenie) do not count.
Below 20 employees there is no statutory severance, even for a redundancy. Notice periods, unused holiday and anything promised in the contract or internal regulations still apply.
How much you must pay
| Service with your company | Statutory severance |
|---|---|
| Less than 2 years | 1 month’s pay |
| 2 to 8 years | 2 months’ pay |
| More than 8 years | 3 months’ pay |
How monthly pay is calculated
The base is worked out the same way as payment in lieu of holiday. Fixed pay is taken at its current rate, and variable pay such as bonuses and commission is averaged over the last three months, or up to 12 months where it fluctuates a lot.
The cap
Statutory severance cannot exceed 15 times the minimum wage on the day employment ends. With the 2026 minimum wage of PLN 4,806, the cap is PLN 72,090.
| Example | Calculation | Severance |
|---|---|---|
| Developer, PLN 18,000 a month, 5 years’ service | 2 × 18,000 | PLN 36,000 |
| Engineering manager, PLN 32,000 a month, 9 years’ service | 3 × 32,000 = 96,000, capped | PLN 72,090 |
Tax and payment
Statutory severance is exempt from social security contributions (ZUS) but subject to income tax (PIT). It is due when employment ends, together with the final salary.
Notice periods and other exit costs
Severance comes on top of the normal cost of ending an employment contract.
| Service with your company | Notice period |
|---|---|
| Less than 6 months | 2 weeks |
| 6 months to 3 years | 1 month |
| 3 years or more | 3 months |
- Shortened notice. In a redundancy, a 3-month notice period can be cut to 1 month. The employee is paid compensation for the remaining time.
- Job-search leave. During notice given by the employer, the employee gets 2 paid days off to look for work, or 3 days with a 3-month notice period.
- Garden leave. You can release the employee from work during notice, with full pay.
- Unused holiday. Any remaining leave is paid out in the final settlement.
Collective redundancies
A stricter procedure applies when you let go of the following numbers of people within 30 days.
| Employees in Poland | Collective redundancy when dismissing |
|---|---|
| 20 to 99 | At least 10 people |
| 100 to 299 | At least 10% of staff |
| 300 or more | At least 30 people |
In that case you must consult the trade unions or employee representatives, notify the district labour office (powiatowy urząd pracy) and follow set timelines before giving notice. If you rehire for the same roles within 15 months, dismissed employees have priority.
What foreign employers should check
Headcount
Confirm how many people are on employment contracts before starting. Going from 19 to 20 employees changes your obligations.A genuine reason
The reason in the notice must be specific and true. Hiring a replacement for the same role soon after is a common basis for reinstatement or compensation claims in the labour court.Contracts and policies
Employment contracts, work regulations or a collective agreement may promise more than the statutory minimum. You can pay more than the law requires, never less.Protected employees
Employees within 4 years of retirement age, pregnant employees, those on maternity or parental leave and trade union representatives have special protection against dismissal.Frequently asked questions
Do B2B contractors get severance?
No. Statutory severance only applies to employees on employment contracts. B2B terms depend on the commercial contract.
Is severance still due if the employee finds a new job during notice?
Yes. Once the conditions are met, severance is due regardless of what the employee does next.
Does severance replace pay for the notice period?
No. The employee receives full pay during notice and severance on top.
We have fewer than 20 employees. Can we still offer severance?
Yes. Many employers offer a payment as part of a mutual termination agreement. It is not required by law, so the amount and conditions are agreed between the parties.
Need to manage a staff exit or restructuring in Poland?
Our Kraków team prepares a compliant plan for your redundancies, including headcount checks, notices and final settlements. Find out more about our HR consulting.
Based on the Act of 13 March 2003 on terminating employment for reasons not concerning employees, and the Polish Labour Code (Articles 36, 36¹, 37 and 39). This guide is general information and not legal advice.
