Employee Cost Calculator - Poland
Our Employee Expense calculator simplifies this complicated process by providing a detailed breakdown of all employment-related costs. Whether hiring full-time employees or contractors, this employment cost calculator Poland ensures you have a clear picture of the financial investment involved.
How to Use the Cost-to-Hire Calculator: Step by Step
Step 1: Choose the Gross Salary Payment Frequency
Select the Monthly or Annual frequency to align with your payroll schedule.
Step 2: Enter the gross salary amount
Enter the amount for the role based on the selected payment frequency.
Step 3: Enter Your Details
Provide your Name, Phone Number, and Email Address to receive your personalized report.
Step 4: Calculate
Click “Calculate” to generate a detailed breakdown of costs, including:
- Â Â Monthly Gross Salary
- Â Â Unemployment Insurance
- Â Â Disability Insurance Contribution
- Â Â Child Care Premium
- Â Â Return to Work Fund
- Â Â Medical Care Contribution
- Â Â Pension Contribution
- Â Â Social Sustainability Fund
- Â Â Monthly CTC
 Note: You can calculate the cost to hire an employee in Poland monthly or annually in real-time by selecting an option or adjusting the value. The calculator will instantly display the updated amount.
Overview of Employment Costs in Poland in 2025
Are you hiring in Poland? Like in every country, Poland incurs additional costs associated with employing workers beyond their gross salary; these expenses may include social security contributions and employee capital plans.
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| Cost Type | Amount (PLN) | Percentage |
| Employer’s Perspective | ||
| Gross Salary | 5,500.00 | – |
| Retirement Insurance Contribution | 536.80 | 9.76% |
| Disability Pension Contribution | 357.50 | 6.50% |
| Accident Insurance | 91.85 | 1.67% |
| Labour Fund | 134.75 | 2.45% |
| FGÅšP | 5.50 | 0.10% |
| Total Employment Cost (total employer cost Poland) | 6,626.40 | – |
| Employee’s Perspective | ||
| Net salary (what the employee gets in their bank account) | 4,078.81 | – |
| Retirement Insurance Contribution | 536.80 | 9.76% |
| Disability Pension Contribution | 82.50 | 1.50% |
| Sickness Insurance | 134.75 | 2.45% |
| Health Insurance Contribution | 427.14 | 7.76% |
| Income Tax (Advance on PIT) | 240.00 | – |
| Gross Salary (for reference) | 5,500.00 | – |
Employment Costs in Poland – Employment Contract
Hiring an employee in Poland involves more than just paying their salary. Employers are required to cover additional costs, including social insurance contributions. Here’s a quick breakdown of these contributions:
- Retirement Insurance: 9.76% of the gross salary.
- Disability Pension Contribution: 6.50%.
- Labour Fund: 2.45%.
- Fund of Guaranteed Workers’ Allowance (FGŚP): 0.10%.
- Accident Insurance: 1.67% (standard rate; may vary by business type).
In total, employers contribute an additional 20.48% of the gross salary for each full-time employee.
Additional Costs to Consider:
- Medical check-ups required by law.
- Compensation for overtime work.
- Payment during periods of employee incapacity.
- Maintaining accurate employee records.
It’s important to note that not all the gross salary goes directly to the employee. Deductions are made for:
- Retirement Insurance: 9.76%.
- Disability Pension: 1.50%.
- Sickness Insurance: 2.45%.
- Health Insurance: 9.00%.
Example: Employment Costs for Minimum Salary in Poland in 2025
The minimum gross salary for full-time employees in Poland sets a baseline for compensation. As of January 1, 2025, the minimum wage has increased to 4,666 PLN per month, applicable to all full-time employees regardless of their experience level. Employers must account for additional costs beyond the gross salary, which include mandatory social contributions. For a gross minimum wage of 4,666 PLN, the employer’s costs broken down as follows:
| Cost Type | Amount (PLN) | Percentage of Gross Salary |
| Retirement Contribution | ~455.40 | 9.76% |
| Disability Pension Contribution | ~303.29 | 6.50% |
| Accident Insurance Contribution | ~77.92 | 1.67% |
| Labour Fund Contribution | ~114.33 | 2.45% |
| Fund of Guaranteed Workers’ Allowance (FGŚP) | ~4.67 | 0.10% |
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Total Employer Cost:
With these contributions, the total employment cost for an employer hiring at the minimum salary level is approximately 5,621.59 PLN.
What are the Taxes for Employers and Employees in Poland?
Employer Taxation in Poland
| Tax | Details |
| Tax Year-End | December 31 |
| Sales Tax (VAT) | 23% |
| Payroll Tax | None (no specific payroll taxes apply). |
| Corporate Tax | 19% (referred to as Podatek dochodowy od osób prawnych). |
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Employee Taxation in Poland
| Tax | Details |
| Income Tax Rates | Based on annual taxable income (including a 4% solidarity surcharge): |
| • Up to PLN 85,528: 17% | |
| • Over PLN 85,528: 32% | |
| Filing & Payment Deadline | Tax filings are due by April 30 each year. Payments from Polish bank accounts are same-day. |
| EU-based payments are processed within 2 days; other international payments take 3+ days. | |
| Public Pension | Retirement age: 65 years (men), 60 years (women). |
| Health Insurance | 9% obligatory contribution, up to 7.75% deductible from the employee’s income tax. |
How to Hire Employees in Poland Without Any Hassles?
Hiring employees in Poland can be smooth when you know the proper steps and comply with local regulations. Here are the main ways to hire talent in Poland:
- Setting Up a Subsidiary Entity
Establishing a legal entity in Poland is an option but can be time-consuming and expensive. The organization responsible for company registration in Poland is the National Court Register (Krajowy Rejestr SÄ…dowy – KRS). This approach is ideal for companies planning a long-term presence in the country.
- Using an Employer of Record (EOR) Service
Partnering with an EOR like PamGro eliminates the complexities of setting up a local entity. The EOR manages payroll, compliance, employee benefits, and more, allowing you to focus on your business growth.
- Comprehensive Support: PamGro handles the entire employee lifecycle, from hiring to retirement.
- Compliance Expertise: Our team ensures you adhere to Polish labour laws, including working conditions, remuneration, and timings.
- Streamlined Process: We simplify hiring in Poland, saving you time and resources.
Ready to make hiring in Poland hassle-free? Connect with PamGro today, and let us take care of the complexities while you focus on growing your business.
EOR Services in Poland
Expanding your business to Poland is hassle-free with Employer of Record (EOR) services. A Poland EOR solution allows you to hire and manage employees without setting up a legal entity, saving you time and money. With PamGro, you can streamline compliance, payroll, and administrative tasks while focusing on growth.
PamGro’s automated, technology-driven platform ensures efficient international expansion. Below are the general terms of our EOR services:
| General Terms | Details |
| Total Employer Liability | Approx. up to 22.14% of the invoice value. |
| Minimum Service Duration | 3 months. |
| Currency Accepted | Polish Zloty (PLN). |
| Required Documents | For Polish Citizens: ID proof, address, CV, bank details, and education certificates. |
| For Expatriates: Job details, qualifications, CV, passport, ID proof, bank details, photos, work permit. |
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With PamGro’s local compliance expertise, we ensure full compliance with Polish labour laws while benefiting from seamless employee management.
Ready to expand in Poland? Partner with PamGro today, and Join 100+ other companies who partnered with PamGro and simplified the global expansion.
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Frequently Asked Questions
01
What are the main components of employer costs in Poland?
Ans:Â Employer costs in Poland includeÂ
- social security contributions,Â
- health insurance, andÂ
- Corporate and sales taxes.Â
These are mandatory payments that businesses must make on behalf of employees.
02
How is employment tax calculated in Poland?
Ans: Employment tax is calculated based on an employee’s salary, includingÂ
- Personal income tax,Â
- Social security, andÂ
- Health insurance contributions.
03
Do employers in Poland have to contribute to social security?
Ans:Â Â Yes, employers must contribute toÂ
- Social security,Â
- Covering pensions,Â
- Disability, andÂ
- Accident insurance for employees.
04
What percentage of salary goes to social security in Poland?
Ans:Â The total social security contributions amount to approximately 19.21% to 22.41% of the employee’s gross salary, according to the Council of Ministers’ Regulation published on September 12, 2024. This includes:
- Employer’s Share: Approximately 19.21% to 22.41%, which covers pension, disability, and accident insurance.
- Employee’s Share: Around 13.71%, covering pension, disability, and sickness insurance.
The changes are primarily based on the regulations established by the Polish government, specifically under the Council of Ministers’ Regulation published on September 12, 2024.
05
Is health insurance a mandatory cost for employers in Poland?
Yes, health insurance is a mandatory cost for employers in Poland. Employers are required to contribute to health insurance, which is deducted directly from the employee’s salary at a rate of 9%.
06
Can employment costs in Poland change based on contract type?
Yes, the costs can vary depending on whether the contract is full-time, part-time, or temporary, with different contribution rates.
07
Are there any tax incentives for employers in Poland?
Yes, Poland offers tax relief for employers hiring specific groups or engaging in certain business activities like R&D or hiring young workers.
08
How do Poland’s employment costs compare to other European countries?
Poland’s employment costs are generally approx 65% lower than Western European countries, making it an attractive location
09
What does the Employee Cost Calculator estimate?
Employee expense calculator estimates the total cost of hiring an employee, including salary, benefits, taxes, and overhead expenses
10
Can the calculator help with compensation insurance decisions?
Yes, it provides a breakdown of employment costs, helping businesses make informed decisions about compensation insurance
11
Does the calculator include the actual employment cost?
Yes, it factors in salary, benefits, payroll taxes, and indirect costs, giving a full picture of employee expenses.
12
How can small businesses use the calculator for budgeting?
Small businesses can use the calculator to estimate total annual costs, helping with more accurate hiring budgets.
13
Can the calculator help reduce labour costs?
The calculator provides a detailed breakdown of employment costs, helping businesses understand the components of labor expenses. While it doesn’t directly suggest ways to optimize costs, this transparency allows employers to analyze areas like taxes and benefits for potential adjustments.
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