Employment in Poland, Labour law, Personal income tax
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In Poland, work is typically performed through either an employment agreement or civil law agreements. The Polish Labour Code and related laws govern employment relationships. Employees with employment agreements have defined work conditions, while those under civil law agreements are not legally considered employees. An employee, under an employment relationship, agrees to perform specified work for the employer's benefit and under their supervision, at specified times and locations, in exchange for remuneration. This employment agreement remains valid regardless of the contract's name, and it cannot be substituted with a civil law contract if the specified work conditions persist.
Employment in Poland - Basic info
In Poland, there are three types of employment agreements:
1️⃣ Employment Agreement for Trial Period: - Maximum duration: 3 months - Can precede a definite or indefinite period employment agreement.
2️⃣ Employment Agreement for Definite Period:** - Maximum duration: 33 months - Limit: Only 3 consecutive agreements; the 4th is considered indefinite.
3️⃣ Employment Agreement for Indefinite Period:** - No fixed end date.
All individuals, including foreigners (both EU and non-EU residents), can be employed under these types of agreements on par with Polish citizens.
How to employ foreigners?
For non-EU residents to work in Poland:
Obtain a Work Permit:Requested by the employer from the competent local authority (wojewoda).
Takes about 2-3 months.
Obtain a Working Visa:Based on the work permit, obtained in the foreigner's country of residence.
Allows legal residence and work in Poland.
Special conditions for citizens of Armenia, Belarus, Georgia, Moldova, and Ukraine:
Work permitted based on employer's statement of intent.
Maximum work duration: 24 months.
Work should not exceed 9 months per year in certain sectors.
The employer's statement must be registered by the Poviat Labour Office, taking about 9 days.
For EU, EEA, and Swiss residents working in Poland:
Work Permit Not Required:
Citizens of EU, EEA, and Switzerland do not need a work permit.
They can work under the same conditions as Polish citizens.
Stay Registration (for stays over 3 months):
If planning to stay in Poland for more than 3 months, they should register their stay at the provincial office.
Poland's government has proposed two minimum wage increases in 2024:
January 2024: Proposed minimum wage increase to PLN 4,242 (EUR 906, USD 1,024) per month.
July 1, 2024: Further proposed minimum wage increase to PLN 4,300 (EUR 960, USD 1,038) per month.
These proposals are subject to potential adjustments and should be verified with official government sources for the most up-to-date and accurate information.
Paid Leave in Poland
Employees in Poland are entitled to annual paid vacation leave:
20 days if employed for less than 10 years.
26 days if employed for at least 10 years.
Employees with intermediate or severe disabilities receive an additional 10 days of paid vacation.
Previous employment periods count toward the leave entitlement. Education periods may also be considered, based on the level of education completed.
When changing employers in a year:
With the current employer, leave is proportional to the period worked.
With a new employer, leave is proportional to the remaining or worked period in the calendar year.
Proposed changes may introduce new leave types, including force majeure leave and annual care leave.
100% or 80% sickness remuneration for up to 33 days.
Sickness benefit from social security for up to 182 days.
Can be granted upon request.
Not counted in the employment period for entitlements.
Employees can also take unpaid leave for work at another employer with consent. Please note that legislative changes are expected, including updates related to parental leave, in line with EU directives.
Taxation in Poland involves different tax scales and rates based on the type and amount of income:
12%: Applies if the tax base is up to PLN 120,000.
32%: Applies if the tax base exceeds PLN 120,000.
The 12% tax is further reduced by a degressive tax-reducing amount of PLN 3,600.
Applicable to income from employment, old-age pensions, or economic activities.
Uniform Tax Rate:
19%: Applies to income from non-agricultural economic activities, certain agricultural branches, sale of securities or real estate, and winnings from games and competitions.
Taxed based on accounting books.
Lump-Sum Tax on Registered Revenues:
Applicable to specific economic activities, where tax is based on revenue.
Tax rates range from 3% to 17% depending on the type of economic activity.
Also applies to revenue from renting real estate or agricultural retail trade (subject to conditions).
Taxpayers can choose the appropriate taxation method and need to submit declarations to the revenue office accordingly.