Compensating your new employees is one of any expansion’s most critical facets. Different countries have various minimum wage laws, bonus requirements, and payment methods that you must learn before adding employees to your payroll. Another equally vital area is benefits. Failing to provide guaranteed benefits could lead to fines, and forgetting any supplemental benefits will cause employees to look for positions elsewhere.
When you need Poland compensation and benefits outsourcing, choose Globalization Partners. We’ll make sure to pay your employees correctly and source benefits that will ensure your workers feel like valued members of your team.
Poland Compensation Laws
Poland recently raised its minimum wage in 2022 to 3.100 PLN gross per month. Employees typically work eight hours a day and 40 hours each week. Anything more is considered overtime, which the employer must approve. Poland compensation laws base overtime on an allowance schedule of 50% to 100% of gross pay on top of the employee’s regular salary or additional leave time.
Guaranteed Benefits in Poland
Your Poland benefit management system first needs to cover all guaranteed benefits. Poland has 13 public holidays in which employees receive the day off. Employees are also entitled to 20 to 26 days of paid leave each year depending on tenure. In Poland, this tenure is based on all periods of employment and education instead of the length of service at just one workplace.
Another guaranteed benefit is maternity and paternity leave, which is paid for by the Social Security Bureau (ZUS). The length of maternity leave depends on how many children the female employee births. After giving birth to one child, the mother receives 20 weeks of maternity leave, while a woman who gives birth to five or more children receives 37 weeks. Male employees receive two weeks of paternity leave, which they can take before the child reaches 24 months old.
Poland Benefits Management
Poland benefit management also includes any supplemental benefits employees may expect. Private health insurance is becoming more common in Poland, especially for senior personnel in larger cities. If you choose to provide an additional health insurance package, you can combine it with the mandatory preventive medical examination under one contract with an Occupational Medical Center. You could also give employees an allowance of around 250 PLN to 350 PLN a month to use for health insurance.
Restrictions for Benefits and Compensation
Employers should keep in mind any additional restrictions for benefits and compensation based on industry and location. Work with an expert or research the statutory minimums ahead of time so that you can provide employees with the best possible plan.
Poland Competitive Benefits Planning
As your business grows, you’ll find that establishing a competitive employee benefits plan is a critical factor in building an international team. If you’re setting up a business in Poland, focus on creating a program that fits your employees’ needs, works with your budget, and meets legal requirements.
Poland Employee Benefits Plans
Employee recruiting and retention are vital to your growth in a new country, and your employee benefits program should reflect the importance of your team. You must strategically balance legal compliance, employee expectations and needs, and your company’s budget to develop the best plan for your unique requirements.
During their employment with your company, your workers may face various life events, from starting a family to having an unexpected medical emergency. When you provide trusted support for your employees, they’ll return your investment with more engagement and want to stay with your company longer.
Along with mandatory benefits, consider offering practical benefits and perks to help your team, such as:
- Private medical insurance
- Life insurance
- A company car or mobile phone
- Business travel insurance
- Gym memberships
- Subsidies for education
Requirements for Employee Benefits in Poland
As an employer, you are required by law to meet these benefits stipulations at a minimum:
- Pension (PPK)
- Social insurance
- Occupational medicine (OM)
- Parental leave
- Maternity and paternity leave
- At least 20 days of annual leave
- Holiday leave for the 13 public holidays
- Paid sick leave 182 days for one disease
- Leave for life events, such as a wedding in the family
- Bereavement leave
How to Design Your Employee Benefits Program
Ensure you begin planning with a holistic picture of your program scope, employee needs, and market conditions by following these steps.
1. Identify Your Business’s Goals and Available Resources
As you begin planning your employee benefits scheme, prioritize setting your goals for benefits administration. You’ll want to consider currently available resources and future growth opportunities you may wish to pursue. Confer with stakeholders and business partners and identify your priorities.
2. Implement a Needs Assessment
It’s also important to understand what your employees need in the current market and region. Hold interviews with local workers and send out questionnaires to understand the top needs of employees. The insights you gather will help you offer benefits of optimal value to your workers.
3. Create an Employee Compensation and Benefits Plan
Once you’ve completed the research process, analyze the data you’ve gathered and incorporate it into your benefits program. Start with the requirements and apply your remaining budget to the benefits local employees will appreciate the most. As you calculate benefits, ensure that you include employee contributions, cost containment features, administration costs, and any outsourcing needs.
Average Cost of Benefits Per Employee
Because your benefits plan can be highly individualized, your final expenses for the program may vary. Remember that your design is key to keeping benefits administration sustainable. Consider your budget and additional costs in the planning process.
How to Calculate Employee Benefits
Employers must contribute 1.5 percent of gross employee salary toward the mandatory pension plan.
The Polish social insurance system provides coverage for inability to work due to disability, death benefits for children of a deceased employee, and sickness and work accident insurance. However, many companies provide additional coverage to provide a better quality of life for employees and their families.
While there are no legal regulations for supplemental benefits, you can calculate competitive rates by evaluating market standards. Identify common practices for your region and industry to offer attractive benefits for your employees.
How Are Employee Benefits Taxed in Poland?
Cash remuneration and in-kind benefit earnings are considered taxable income in the country. These taxable benefits include:
- Allowances over a minimum limit
- Awards and bonuses
- Cash equivalents for holiday leave not used
- Non-pecuniary benefits
- Employer-provided housing
Employee Health Benefits Plans
All employees receive state-funded public health care. However, most Polish companies also offer private insurance options to provide additional health coverage for their employees. To be competitive in the region, you’ll likely want to explore possibilities for private employee health care as well.
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