Payroll in Poland: A Guide for Foreign Employers

To run payroll in Poland, a foreign company needs a legal way to employ people, registration with the Polish Social Insurance Institution (ZUS) and a monthly cycle of salary, tax and contribution payments. Most foreign SMEs do this through their own Polish company with outsourced payroll. Others use an employer of record or contract people on a B2B basis, but each model carries different costs and risks.

What does a foreign company need before running payroll in Poland?

Before the first salary is paid, a foreign company needs registration with ZUS as a contribution payer and written employment contracts. Each employee must be reported to ZUS within 7 days of starting work.

The checklist:

1. Choose the employer. It can be a Polish company or branch, the foreign company itself or an external employer of record (see the comparison below).
2. Register as a contribution payer. A Polish company entered in (KRS) shall register with ZUS on the basis of the National Court Register (KRS) and tax data. A foreign employer without a Polish entity must register with ZUS as a foreign payer under a separate procedure.
3. Sign written contracts before work starts. Polish law requires an employment contract in Polish. A contract with an employee who is not a Polish citizen may be drawn up in a foreign language, at the employee’s request, after he or she has been informed of the right to a Polish version.
4. Report employees to ZUS within 7 days of the start of work.
5. Set up PPK (Employee Capital Plans), the workplace pension scheme that covers most employers in Poland.
6. Agree the payroll calendar with your payroll provider and your bank.

Employing foreign nationals adds more steps. Since 1 June 2025, a foreigner must receive a written contract before starting work. If the contract is in Polish, it must come with a version in a language the foreigner understands. Well established practice are bilingual employment contracts: in Polish and in other language, understood by the employee. If the agreement is in a foreign language only, it needs a sworn Polish translation.

Which taxes and contributions does an employer pay in Poland?

On top of the gross salary, a Polish employer pays social security contributions of roughly 20% of pay. It also withholds the employee’s own contributions, health insurance and income tax from the gross salary. The exact employer cost depends on the accident insurance rate and on participation in PPK.

The 15th is the ZUS deadline for payers with legal personality, such as a limited liability company. Other payers use different dates.

The 12% rate applies after the tax-free amount of PLN 30,000 a year. In practice, the employer reduces each monthly tax advance by PLN 300 if the employee has submitted a PIT-2 statement. Employees under 26 can be exempt from income tax on employment income up to PLN 85,528 a year. Pension and disability contributions stop once the employee’s earnings in a year reach the annual cap set for that year.

Example: employer cost and net pay at the 2026 minimum wage

The example assumes standard tax-deductible costs of PLN 250 a month, a submitted PIT-2 statement and no PPK. With PPK, the employer pays 1.5% more and the employee’s net pay falls by 2% of gross salary, plus tax on the employer’s PPK contribution.

What does the monthly payroll calendar look like?

Polish payroll runs on fixed monthly dates: salaries are paid by the 10th of the following month at the latest, ZUS contributions by the 15th and income tax by the 20^th day of the month following payday. Many companies pay salaries on the last working day of the month.

Under the Labour Code, salaries are paid at least once a month, on a fixed date set in advance. If payday falls on a non-working day, the salary is paid the day before. Salaries go to the employee’s bank account; cash is paid only at the employee’s request.

What are the annual payroll obligations?

Each year, a Polish employer files annual tax information for every employee and an annual return on withheld tax, and updates several registers. The main deadlines fall in January and February.

• PIT-11: annual information on each employee’s income and tax. It goes to the tax office by the end of January and to the employee by the end of February.
• PIT-4R: annual return on income tax withheld from salaries, filed by the end of January.
• Accident insurance data: larger payers report data that ZUS uses to set their accident insurance rate.
• PFRON contributions: employers with at least 25 full-time employees that do not meet the required share of employees with disabilities pay monthly contributions to the State Fund for Rehabilitation of Disabled Persons.
• Holiday planning and working time records for each employee.

Employment contract or B2B: what should a foreign employer know?

A B2B contract is a contract with a self-employed person, not an employment contract, and it cannot be used for work that has the features of employment. If the person works under the employer’s direction, at a set place and time, the contract may be treated as an employment relationship.

The risk grew in 2026. Since 8 July 2026, after the reform of the National Labour Inspectorate (PIP), a district labour inspector can issue an administrative decision finding that an employment relationship exists, if the employer does not follow the inspector’s order. The employer can appeal to the labour court. Under transitional rules, employers that voluntarily convert such civil law contracts into employment contracts by 8 July 2027 can avoid misdemeanour liability for the past arrangement. This protection does not eliminate potential liabilities for unpaid social security contributions, taxes and interest, or claims that the individual may have under employment law.

Reclassification has tax and social security consequences: unpaid contributions, interest and income tax that should have been withheld. Before you use B2B contracts in Poland, check each role. ALTO’s B2B contract risk review helps assess this risk.

Own entity, employer of record or payroll outsourcing?

A foreign SME has three main ways to pay people in Poland: its own Polish entity with outsourced payroll, an employer of record (EOR) or contracts with self-employed people. The right choice depends on how many people you employ and how long you plan to stay.

Polish law does not regulate the EOR model as such. It does regulate temporary work. A temporary work agency may assign the same worker to the same user employer for no more than 18 months within 36 consecutive months. Discuss the EOR contract with an advisor before signing it, so you understand how it fits these rules.

A foreign employer can also employ people in Poland without establishing a Polish entity. Before doing so, it should determine whether the employee is subject to the Polish social security system, taking into account EU coordination rules or the relevant international agreement. If Polish social security applies, the employer generally registers with ZUS as a foreign contribution payer and must comply with Polish payroll rules. This works for one or two employees but becomes heavy as the team grows.

In certain cases the employer may agree with the employee that the employee performs the contribution payer’s administrative duties on its behalf. The employer must also assess its Polish payroll tax obligations and whether the employee’s activities could create a permanent establishment in Poland. Direct employment may be practical, but the compliance burden and tax risks should be reviewed before the arrangement is implemented.

What are the most common payroll mistakes in Poland?

The most common payroll mistakes are late ZUS registration, wrong contract types, missed PPK enrolment and payments made after the statutory deadlines. Each of them can lead to interest, fines or a dispute with ZUS or the labour inspectorate.

1. Reporting an employee to ZUS after the 7-day deadline.
2. Using B2B or civil law contracts for work that is in fact employment.
3. Skipping PPK or enrolling employees late.
4. Paying salaries after the 10th of the following month, or without a fixed payday.
5. Signing a contract with a foreign employee only in English without meeting the language rules.
6. Treating payroll as purely technical. Benefits in kind, such as a company car or private medical care, are usually taxable income and must be included in payroll.
7. Missing annual deadlines for PIT-11 and PIT-4R in January.

FAQ

Can a foreign company employ people in Poland without a Polish entity? Yes. A foreign company can employ people in Poland directly and register with ZUS as a foreign contribution payer. It must then follow Polish payroll, tax and labour law.

How often are salaries paid? Salaries in Poland are paid at least once a month, on a fixed date set in advance. The payday may not be later than the first 10 days of the following month. If payday falls on a non-working day, the salary is paid the day before. Most companies pay at the end of the month or by the 10th.

What is PPK? PPK (Pracownicze Plany Kapitałowe, Employee Capital Plans) is a workplace pension scheme. The basic contribution is 1.5% of salary paid by the employer and 2% paid by the employee. Contributions are transferred by the 15th of the following month. An employee can opt out by submitting a declaration, which stops contributions from the moment the employer receives it.

Can payslips be issued in English? Polish law does not prescribe a payslip form. On request, the employer must let the employee see the documents behind the calculation of pay. Many employers issue bilingual or English payslips. The employment contract follows the language rules described above: Polish as a rule, a foreign language only at the request of a non-Polish employee.

Who registers employees with ZUS? The employer, as the contribution payer, registers each employee with ZUS within 7 days of the start of work. In practice, the payroll provider prepares and files the forms on the employer’s behalf. The employer remains responsible for the deadline and for the accuracy of the data.

How can ALTO support you?

ALTO runs payroll for foreign-owned companies in Poland from Warsaw. We register employers and employees with ZUS, calculate salaries, prepare payslips and file monthly ZUS, tax and PPK obligations. Our labour law and tax experts help choose between employment and B2B contracts and prepare companies for labour inspections. We report in English and work with your group’s HR and finance teams. Learn more on our HR and payroll page.

Sources

• Biznes.gov.pl, registering a contribution payer and employees with ZUS: https://www.biznes.gov.pl/pl/portal/00275
• Biznes.gov.pl, ZUS contribution deadlines: https://www.biznes.gov.pl/pl/portal/00277
• ZUS, rules for contributions of employees (guide): https://www.zus.pl/documents/10182/167567/Zasady+ustalania+pws+pracownik%C3%B3w.pdf/cc2f15db-0f03-8e13-068f-926cde4ebbae
• ZUS, accident insurance guide: https://www.zus.pl/documents/10182/167567/poradnik_wypadkowe.pdf/15281e1b-c3f3-472a-81b3-7d10e1a434c8
• ZUS, registration of a person acting as a foreign payer: https://www.zus.pl/en/-/zgloszenie-osoby-pelniacej-role-platnika-zagranicznego
• Ministry of Family, Labour and Social Policy, minimum wage: https://www.gov.pl/web/rodzina/minimalne-wynagrodzenie-za-prace
• Zielona Linia (Public Employment Services), minimum wage and minimum hourly rate in 2026: https://zielonalinia.gov.pl/wynagrodzenie-minimalne-w-2026-1/
• Podatki.gov.pl, PIT relief for young people: https://www.podatki.gov.pl/ulgi-i-odliczenia/ulga-dla-mlodych-pit
• ZUS, annual cap on pension and disability contributions: https://www.zus.pl/en/firmy/rozliczenia-z-zus/30-krotnosc
• Public Employment Services, rates and amounts (Labour Fund, FGŚP): https://psz.praca.gov.pl/rynek-pracy/stawki-kwoty-wskazniki
• Podatki.gov.pl, PIT scale: https://www.podatki.gov.pl/podatki-firmowe/pit/informacje-podstawowe/co-jest-opodatkowane/opodatkowanie-wedlug-skali-podatkowej
• Podatki.gov.pl, obligations of the PIT payer (PIT-11, PIT-4R): https://www.podatki.gov.pl/podatki-osobiste/pit/platnik
• Mojeppk.pl, PPK contributions: https://www.mojeppk.pl/aktualnosci/jak-utworzyc-ppk-przekazuj-wplaty-do-ppk-1023n.html
• Mojeppk.pl, opting out of PPK: https://www.mojeppk.pl/aktualnosci/deklaracja-rezygnacji-z-ppk.html
• National Labour Inspectorate, payment of wages: https://www.pip.gov.pl/dla-pracodawcow/porady-prawne/wynagrodzenie-za-prace
• National Labour Inspectorate, contracts with foreigners and sworn translators: https://www.pip.gov.pl/aktualnosci/powierzenie-pracy-cudzoziemcowi-moze-wymagac-udzialu-tlumacza-przysieglego
• National Labour Inspectorate, temporary work agencies: https://www.pip.gov.pl/dla-pracownikow/pytania-i-odpowiedzi/czy-agencja-pracy-tymczasowej-moze-zawierac-dowolna-liczbe-umow-na-czas-okreslony?tmpl=print
• Ministry of Family, Labour and Social Policy, PIP reform enters into force: https://www.gov.pl/web/rodzina/wzmacniamy-panstwowa-inspekcje-pracy–reforma-wejdzie-w-zycie