Costs related to hiring an employee with an employment contract in Poland

We often receive enquiries from people from abroad starting a business in Poland about the costs associated with hiring an employee on an employment contract, which the employer has to bear. We have decided to meet the demand for this information.

Among all the contributions and costs that must be covered by virtue of keeping an employee on the said contract, one can distinguish those necessary to be paid by the person employed and by the employer. Some of them are covered half by both parties and some are paid for by only one .

Costs borne by the employee on the employment contract:

• pension benefit of 9.76% of gross salary,
• disability benefit – 1.5%,
• sickness benefit – 2.4%,
• health benefit – 9%.

Costs borne by the employer on the employment contract:

• pension benefit also at 9.76% of gross salary,
• disability benefit – 6.5%,
• accident benefit – 1.67% (the amount may vary depending on the type of activity),
• contribution to the Labour Fund – 1%,
• contribution to the Solidarity Fund – 1.45%,
• contribution to the Guaranteed Employee Benefits Fund – 0.1%.

Jan Kowalski

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