How to run payroll in Poland

Payroll in Poland runs on a monthly cycle. Payment is usually due by the 10th of the following month.

Most Polish employers pay salaries once per month, typically between the 1st and 10th of the month following the work period. For example, January wages must be paid by February 10th at the latest.

Payment timing requirements

Polish labor law requires employers to pay wages by the 10th of the month following the work period. This deadline is strict - late payments can result in penalties and interest charges.

Some companies choose to pay earlier, often on the last working day of the month or by the 5th of the following month. This gives payroll teams more processing time while keeping employees happy.

13th month salary

Poland doesn't mandate a 13th month payment, but many employers provide annual bonuses. These are typically paid in December and are subject to standard income tax and social security contributions.

When companies do offer 13th month payments, they're usually calculated as one month's base salary. The timing varies by company - some pay in December, others split it across the year.

Holiday and vacation pay

Employees receive their regular salary during annual leave periods. There's no additional "vacation bonus" required by law, just normal monthly pay continuation.

Vacation pay is calculated based on the employee's average earnings from the three months before taking leave. This includes base salary plus any regular allowances or bonuses.

Payment methods

Bank transfers are the standard payment method in Poland. Employers must transfer net salaries directly to employees' designated bank accounts.

Cash payments are only allowed for small companies (under 6 employees) or in exceptional circumstances. International companies typically use Polish bank accounts or global payroll providers to ensure compliance.

All payments must be in Polish złoty (PLN), even for international employees working in Poland.

Payslip requirements

Polish law requires detailed monthly payslips showing all salary components, deductions, and contributions. Payslips must include:

• Employee personal details and tax identification number
• Gross salary breakdown by component
• All social security and tax deductions
• Net salary amount
• Employer's social security contributions

Payslips can be provided electronically if employees consent, but paper copies must be available upon request. All payslips must be in Polish, regardless of the employee's nationality.

Tax withholding reports in Poland are due by the 20th of each month. Late filing means penalties starting at zł500, plus daily interest charges that add up fast.

Income tax brackets

Poland uses a progressive tax system with two main rates for 2026. The tax-free allowance is zł30,000 annually, which phases out completely for incomes above zł120,000.

Annual Income (zł)	Monthly Income (zł)	Tax Rate
zł0 - zł120,000	zł0 - zł10,000	12%
Above zł120,000	Above zł10,000	32%

The tax-free allowance reduces by zł1 for every zł1 earned above zł85,528. This means employees earning zł120,000 or more get no tax-free allowance.

High earners also pay a 4% solidarity surcharge on income exceeding zł1,000,000 annually.

Withholding requirements

Employers must withhold income tax from all employee salaries and remit it monthly. You're responsible for calculating the correct amount based on each employee's annual projected income.

Register for payroll tax withholding within 7 days of hiring your first employee. You'll need your company's tax identification number (NIP) and employment contracts.

File annual reconciliation forms (PIT-11) by February 28th for the previous tax year. Provide employees with their annual tax certificates (also PIT-11) by the same date.

Tax registration

New employers need three key registrations before running payroll:

• Tax office registration: Submit form ZUS ZZA within 7 days of first hire
• Withholding tax registration: Automatic with employee registration
• Monthly reporting setup: Register for electronic filing through the tax portal

The tax office assigns you a withholding tax identification number. You'll use this for all monthly filings and payments.

Special tax considerations

Non-resident employees face different rules. EU citizens pay the same rates but may qualify for tax treaty benefits in their home country. Non-EU residents pay standard Polish rates with no tax-free allowance unless they become Polish tax residents.

Tax residency kicks in after 183 days in Poland during any calendar year. Residents pay tax on worldwide income; non-residents only on Polish-source income.

Some regions offer special economic zones with reduced corporate tax rates, but these don't affect employee income tax withholding.

Common tax mistakes

Incorrect allowance calculations top the list. Many employers apply the full zł30,000 allowance to high earners who don't qualify. This triggers penalties of 20% of the under-withheld amount.

Missing solidarity surcharge on million-plus earners costs 20% penalties plus interest. The 4% rate applies monthly, not annually.

Late monthly filings incur zł500 minimum penalties, even for small amounts. Electronic filing failures due to system issues don't excuse late submission.

Wrong non-resident treatment creates major compliance issues. Treating tax residents as non-residents (or vice versa) can mean 50% penalties on the tax difference.

Annual reconciliation errors carry lighter penalties but still cost zł200-500 per mistake.

Think your home country has high employer taxes? Poland's contributions total 20.71% on top of every salary.

Here's what you'll pay for a zł60,000 annual salary in 2026:

Contribution Type	Employer Rate	Employee Rate	Cap (if any)
Social Security	9.76%	9.76%	zł187,170
Pension (Disability)	6.50%	1.50%	zł187,170
Health Insurance	0%	9.00%	-
Unemployment	2.45%	-	zł187,170
Work Accident	0.67%-3.33%	-	-
Labor Fund	2.45%	-	-

Total employer cost breakdown

For a zł60,000 salary, you'll pay:

• Base salary: zł60,000
• Social security: zł5,856
• Pension contributions: zł3,900
• Unemployment: zł1,470
• Work accident: zł402 (0.67% rate)
• Labor Fund: zł1,470

Total employer cost: zł72,426 Cost multiplier: 1.21 (you pay 21% more than base salary)

Contribution caps and high earners

Most contributions cap at zł187,170 annually (30x average monthly salary). Once an employee hits this threshold, you stop paying social security, pension, and unemployment contributions.

For high earners making zł300,000+, your effective contribution rate drops to around 15% after the cap kicks in. Health insurance has no cap - employees pay 9% on their full salary.

Registration and payment requirements

Register with ZUS (Social Insurance Institution) within 7 days of hiring your first employee. You'll need:

• Company registration documents
• Employee contracts
• Bank account details for contributions

Pay contributions by the 15th of the following month. Late payments incur 8% annual interest plus potential penalties up to 100% of the unpaid amount.

Sick leave in Poland is paid at 80% for the first 33 days by the employer. After that, ZUS (social insurance) takes over at 80% of the calculation base for up to 182 days total.

This split matters for your payroll calculations. You'll pay the first 33 days at 80% of the employee's average daily wage from the last 12 months. ZUS handles the rest, but you still process the payments and get reimbursed.

Annual leave

Poland requires 26 days of annual leave for employees with over 10 years of work experience. Employees with less experience get 20 days. This includes previous employers and education toward the experience calculation.

Vacation pay calculation

Calculate vacation pay using the employee's average daily wage from the 12 months before taking leave. Include all salary components: base pay, bonuses, overtime, and allowances.

If the employee hasn't worked 12 full months, use their actual employment period for the average.

Carryover and payout rules

Employees can carry over unused vacation to March 31st of the following year. After that, unused days expire unless the employee couldn't take them due to work requirements.

You must pay out all unused vacation days when employment ends. Use the same calculation method as regular vacation pay.

Sick leave

Employees get a medical certificate from day one of illness. For absences over 30 days, ZUS may require additional medical examinations.

Payment responsibility split

Days 1-33: You pay 80% of average daily wage Days 34-182: ZUS pays 80%, but you process and get reimbursed Days 183+: ZUS pays 75% directly (for longer-term disability)

The average daily wage calculation uses the same 12-month method as vacation pay.

Parental leave

Maternity leave

Duration: 20 weeks (22 weeks for multiple births) Pay: 100% of average wage for first 14 weeks, 60% for remaining weeks Who pays: ZUS pays, but you process through payroll

Paternity leave

Duration: 2 weeks within first 24 months of child's life Pay: 100% of average wage Who pays: ZUS pays, you process

Additional parental leave

Parents can take up to 32 weeks of additional parental leave at 60% pay. This can be split between parents but affects your payroll processing when taken.

Public holidays 2026

Date	Holiday	Notes
January 1	New Year's Day
January 6	Epiphany
April 5	Easter Sunday
April 6	Easter Monday
May 1	Labor Day
May 3	Constitution Day
May 24	Whit Sunday
June 4	Corpus Christi
August 15	Assumption Day
November 1	All Saints' Day
November 11	Independence Day
December 25	Christmas Day
December 26	Boxing Day

Work on public holidays requires 100% overtime premium on top of regular pay.

Mandatory benefits affecting payroll

Employee meal allowances

You can provide tax-free meal allowances up to PLN 300 per month in 2026. Amounts above this limit are taxable income.

Company car benefits

Personal use of company cars creates taxable benefit equal to 1.5% of the car's initial value monthly. This gets added to gross salary for tax calculations.

Transportation allowances

Commuting allowances up to PLN 300 monthly are tax-exempt. Higher amounts become taxable income subject to regular payroll taxes.

Miss the 20th monthly filing deadline in Poland and penalties start at zł500 per day. Poland's tax authorities don't negotiate on deadlines, and the consequences compound quickly.

Monthly filing requirements

Poland requires monthly submissions to both tax and social security authorities. You'll file PIT-4R forms for income tax and DRA forms for social contributions by the 20th of the following month.

All filings go through the e-Urząd Skarbowy portal for tax matters and PUE ZUS for social security. Paper submissions aren't accepted for regular payroll filings in 2026.

Late filing penalties hit immediately after the deadline. You'll pay zł500 per day for the first 30 days, then zł1,000 daily thereafter. Interest accrues at 0.1% per day on any unpaid tax amounts.

Social security reporting

ZUS contributions require separate monthly reporting through the DRA form. This covers pension, disability, sickness, and accident insurance for all employees.

Submit employee changes using ZUA forms within 7 days of employment start or termination. Missing this deadline triggers automatic penalties of zł1,000 per unreported employee.

Annual reporting

Year-end reconciliation happens through PIT-11 forms, due by February 28, 2026 for the 2025 tax year. These summarize total annual income and tax withheld for each employee.

Employees receive their PIT-11 statements by January 31. You must also file a summary PIT-11A form listing all employees and total amounts.

Audit requirements

Polish tax authorities audit approximately 15% of employers annually. They focus on payroll tax compliance, proper classification of workers, and social security contributions.

Keep all payroll records for 5 years minimum. Auditors typically request employment contracts, payslips, bank transfer records, and time tracking documentation.

Employee documentation

Employment contracts must be in Polish and include specific mandatory elements. Missing required contract terms makes the entire agreement legally invalid.

Required contract elements include:

• Exact job title and duties
• Workplace address
• Start date and contract duration
• Base salary amount in PLN
• Working time arrangements
• Notice periods for termination

Payslip requirements

Monthly payslips must contain detailed breakdowns of gross pay, all deductions, and net amounts. Issue them by the salary payment date, not later.

Include your company's ZUS registration number and the employee's PESEL (tax identification number) on every payslip. Missing these identifiers violates data protection requirements.

Penalties and violations

Violation	Penalty Amount
Late monthly tax filing	zł500-1,000 per day
Missing payslip elements	zł2,000 per occurrence
Incorrect tax withholding	20% of underpayment
Unregistered employee	zł5,000-50,000
Worker misclassification	zł50,000 per case
Missing employment contract	zł1,000-30,000

Criminal liability

Intentional tax evasion exceeding zł100,000 carries criminal charges. Management faces personal liability including prison sentences up to 8 years.

Even unintentional errors become criminal matters when they exceed zł500,000 in unpaid taxes or contributions.

Regulatory oversight

The National Tax Administration (KAS) handles income tax compliance and audits. Their main portal at podatki.gov.pl provides forms, guidance, and filing systems.

Social Insurance Institution (ZUS) manages all social security matters through zus.pl. Register new companies and employees through their PUE system.

Contact information

KAS Taxpayer Service: 801 055 055 (domestic) or +48 22 330 03 30 (international) ZUS Customer Service: 22 560 16 00 Ministry of Labour helpline: 22 461 62 15

Both agencies offer English-language support for international employers, though all official correspondence happens in Polish.

Effective January 1, 2026, all employers in Poland must apply the new minimum wage of zł4,666 per month (up from zł4,300 in 2025). This 8.5% increase affects both salary calculations and social contribution bases.

Minimum Wage Adjustment - Effective January 1, 2026

Poland's minimum wage increased to zł4,666 monthly (zł30.50 hourly for contract work). The previous rate was zł4,300 monthly.

Regional variations don't apply - this rate is mandatory nationwide. Update your payroll systems immediately, as underpayment penalties start at zł1,000 per violation.

Social Security Rate Changes - Effective January 1, 2026

The disability pension contribution rate decreased from 1.5% to 1.3% for employees. Employer rates remain unchanged at 6.5%.

This small reduction saves employees about zł9 monthly on minimum wage, but you'll need to update your withholding calculations for all staff.

Income Tax Threshold Adjustment - Effective January 1, 2026

The tax-free allowance increased to zł35,000 annually (from zł30,000). This affects employees earning up to zł85,528 per year.

Employees will see slightly higher net pay starting with January 2026 payrolls. Update your tax calculation tables to reflect the new brackets.

Electronic Reporting Requirements - Effective March 1, 2026

All employers must submit payroll reports through the new ePUAP 2.0 system. Paper submissions are no longer accepted after this date.

Register for the new system by February 15, 2026. Late registration triggers automatic penalties of zł500 per missed filing.

Upcoming Changes - July 2026

New parental leave regulations take effect July 1, 2026, extending paid leave from 52 to 56 weeks. Start planning budget adjustments now, as this affects all employees with children born after the effective date.