Guide to living and working in Poland

Poland

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Country Overview

 

Population

38.1m

Unemployment Rate

11.1% (03/08)

Average annual unemployment rate 1995 – 2004

15.5%

GDP

€270bn / $421bn

GDP per head

€7,092 / $11,057

Capital

Warsaw

Major language

Polish

Life Expectancy (UN)

71 years (men)

80 years (women)

Monetary unit

1 zloty = 100 groszy

Internet domain

.pl

International dialing code

+48

 

In 2007, Polish GDP grew 6.5%; driven by rising private consumption, increased investment and growing exports. Poland today has a thriving private sector. GDP per capita is approaching that of the three Baltic States and consumer price inflation remains among the lowest in the EU. Since 2004, EU membership and access to EU structural funds has provided a major boost to the economy. However, unemployment in Poland is still one of the highest in the EU. An inefficient commercial court system, a rigid labour code, bureaucratic red tape and persistent corruption prevent the private sector from fulfilling its potential. Challenges to lowering the government budget deficit include the expensive systems of health care, education, pension and state administration.

 

The Economy

 


Industries include: machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, and textiles.

 

Pay

 

 

 

Human development Index

 

Ranking:  37th
Index value:  0.870

 

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

Poland has low population growth and more emigration than immigration. Although positive population growth occurred in 2006 for the first time in 5 years, the number of inhabitants of pre-productive age continues to decrease and the population is ageing with the consequent decline in the working population.

The high level of economic inactivity among Poles is caused by delayed entry to the labour market by young people and growing numbers of retirees.

In 2006, the GDP growth in Poland was the highest in 9 years and a substantial investment boom occurred. Other factors which significantly influenced the improvement of the labour market situation included: the increase of expenditure on active labour market programmes; an increase in the number of job offers; an increase of interest in self-employment; the use of EU funds and an increase in the number of university graduates providing a more qualified workforce.

In 2006, there were 2,904,000 employers and self-employed among the employed aged over 15 (19.9% of all the employed), though more than a half of their business activities were in the agriculture, hunting and forestry sectors. Among the remaining employers, there was a majority of business activities in the trade and repair sectors, industrial processing and construction industry.

Applying for a job:

Job applicants in Poland usually present the prospective employer with their curriculum vitae (CV) and a covering letter and then wait for an interview. The CV should contain personal information, professional experience, education and professional qualifications, as well as any additional skills. The applicant’s hobbies may be listed in the CV, especially if they increase his or her value as an employee. The CV should be a maximum of two pages and should be tabulated. The covering letter is another document that is required and this should state why the applicant is applying for the particular job offer. It is more personal, takes up one A4 page and should be signed and dated.

 

Conditions and rights

Employment law:

The Labour Code (LC) of 26 June 1974 (amended on 17 December 2004) regulates the rights and duties of employees and employers, as well as conditions of employment of workers in both the public and the private sector. It covers all persons employed on the basis of “a contract of employment, appointment, nomination, election or a cooperative contract of employment”. These different forms of employment are all defined in the Code, together with the definitions of employer and employee.

Working hours:

Standard hours: working hours may not exceed 8 hours per day and an average of 40 hours in a five-day working week. This is calculated within an accepted reference period, not exceeding 4 months. A weekly working time, including overtime, may not exceed 48 hours on average in an accepted accounting period.

Overtime: The number of overtime hours worked in connection with specific employer requirements may not exceed 150 hours in a given calendar year for an individual employee. Performance of overtime is compensated by additional payment or by time off in lieu.

Work on Sundays and public holidays: An employer is obliged to provide an additional day off to an employee performing work on Sundays and/or during holidays. Such an employee should have a Sunday off at least once every 4 weeks.
Holidays and leave:

Annual leave: An employee becomes entitled to annual leave after the end of the first month of work. The employee acquires the right to consecutive annual leave after each calendar year of work. Annual leave is 20 days if a worker has been employed for less than 10 years, or 26 days if a worker has been employed for at least 10 years.

Maternity leave: A female employee is entitled to maternity leave of 18 weeks at the birth of the first child, then 20 weeks for each subsequent birth. In the case of twins or more, maternity leave is extended to 28 weeks. After taking 14 weeks of maternity leave, a female employee can give the remainder to a working father, who can then care for the child.

Parental leave: Parental leave can be taken for up to 3 years, but only until a child turns 4. To benefit from parental leave, an employee must have been employed for a period of at least 6 months.

Training leave: An employee who improves his/her professional qualifications at an employer’s request is entitled to training leave.

Poland Public holidays: 1st January, 1st day of Easter, 2nd day of Easter, 1st May, 3rd May, 1st day of Pentecost, Corpus Christi Day, 15th August, 1st November, 11th November, 15th and 26th December.

 

Contracts

Types of employment:

A work agreement may be concluded with a person aged 18 or over, but persons aged 16-18 may also be hired. The agreement can last for an indefinite period, a definite period or a time period in order to complete a specified job. Each of the above agreements may be preceded by a work agreement for a probationary period not exceeding 3 months.

The most frequent type of work agreement in Poland is the full-time work agreement for an indefinite period. However, work agreements for a definite period are more and more common. Other non-standard types of employment include:

  • part-time employment, which must have the same work and pay conditions as if working on a full-time basis 
  • outsourcing, or contracting external companies to do certain jobs 
  • temporary work, i.e. through a work agreement made between a temporary worker and a temporary job agency on the basis of which they carry out their work for another employer. This work is seasonal, occasional or short-term.

 

Employment contracts:

Work agreements are made in writing and contain the following information: the parties to an agreement, the type of agreement, the date of its conclusion and conditions of work and pay, and in particular: the type of work, the place at which work is carried out, payment for the type of work, whether the work is part-time or full-time, and a start date. Amendments to terms of employment contracts must be made in writing and can only be done with the mutual agreement of the parties.

 

Visas and work permits

Visas:

In most instances, a valid passport is sufficient for a stay of up to 3 months. Before arriving in Poland, the passport must be valid for at least a further 6 months. For countries that do require a visa before entering Poland, the visa must be valid for a period of 6-12 months.
Nationals of certain countries can visit Poland for up to three months without a visa but will need to be granted a work visa or permit to take up employment. Citizens of the following countries do not need a visa to enter Poland for up to 90 days:

Andorra, Argentina, Austria, Australia, Belgium, Bolivia, Brazil, Brunei, Bulgaria, Canada, Chile, Costa Rica, Croatia, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Greece, Germany, Guatemala, Honduras, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macao, Malaysia, Malta, Mexico, Monaco, Netherlands, Nicaragua, Norway, New Zealand, Panama, Portugal, Romania, Salvador, San Marino, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, United Kingdom, United States of America, Uruguay, Vatican, (Holy See) and Venezuela,

Nationals of countries not mentioned above will need a visa to visit Poland. To apply for visas contact your nearest Polish Embassy or Consulate

Work permits:

A foreign resident who is interested in working in Poland must obtain a work permit and a working visa. A work permit is only granted to skilled workers who do not pose a threat to local employment. In addition, on the basis of the work permit, an application must be made for a working visa. Approval of the working visa will be granted only outside Poland. If the employee is in Poland, he must leave Poland to obtain the visa. The working visa will remain valid for a maximum of one year with an option to extend it.

A8 (Accession) Nationals: (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Slovakia and Slovenia) and citizens of the UK, Sweden, Ireland, Malta and Cyprus are welcome to live and work in Poland without a visa or work permit.

If you are from a country that is not mentioned above you must obtain a work visa or permit to work in Poland.

 

Tax, social security and healthcare

Taxation system:

Poland's taxation of an individual's income is progressive: the higher the income, the higher the rate of tax payable. The 2008 tax rate for an individual is between 19-40%. Individuals can choose, under certain conditions, to pay a flat rate of 19% on business income. Corporate tax in 2008 is 19%.

An individual pays tax on his income as a wage earner or as a self-employed person. The tax for an individual who meets the criteria of a "permanent resident" in Poland will be calculated on his income in Poland and abroad. A foreign resident who is employed in Poland pays tax only on his income earned in Poland. To be considered a Polish resident, Poland must be your permanent place of residence. An employer is obligated to deduct, on a monthly basis, the tax payable on an employee's salary.

A self-employed person must prepay income tax that will be offset on filing an annual return. The advance payment is determined on the basis of the return made for the previous year. In the event of a new business, the advance will be calculated on the basis of estimates made by the owner of the business. Certain payments are deductible from taxable income as detailed below.

Poland Individual income tax rates 2008:

Income Band (PLN)

Tax (%)

0 – 37,024

19%

37,025 – 74,048

30%

74, 049+

40%

Taxation of employees – social security:

  • Employer - 17.2% - 20.1%
  • Employee - 18.71%

Social security system:

The Polish social insurance system is made up of the following: the system of social insurance and provisions, the health insurance system, the unemployment benefit system and the social assistance system.

The Polish social insurance system comprises of: retirement insurance, pension insurance, sickness insurance and accident insurance. The following persons are subject to obligatory retirement and pension insurances: employees, members of agricultural production cooperatives, contractors, persons running non-agricultural businesses, persons receiving unemployment benefit, persons on parental leave and persons receiving maternity benefit.

Social insurance benefits are financed through contributions. Contribution percentage rates are uniform for all insured persons, the amounts are as follows: 

  • 19.52% of the base for calculation – for retirement insurance (the employer and employee pay the same amount – 9.76% each), 
  • 13% of the base for calculation – for pension insurance (the employer and employee pay the same amount – 6.5% each), 
  • 2.45% of the base for calculation – for sickness insurance (the employee pays the whole amount).

The accident insurance contribution varies and ranges from 0.97% to 3.86% of the base for calculation, depending on the employer’s type of business activity. The entire contribution for this insurance is paid by the employer.

Health system:

Today, there is a developed system of public and private social care and supplementary private healthcare in Poland. The following persons can be insured through the National Health Fund and receive healthcare benefits: 

  • citizens of  EU or EEA member states, residing in the territory of an EU or an EEA member state,.
  • persons who do not have citizenship of the EU or an EEA member state, residing within the territory of Poland on the basis of: a residence visa in order to perform work; a residence permit for a defined period; a settlement permit; permission for tolerated residence; having a refugee status granted in the territory of Poland or benefiting from temporary protection in its territory.
  • persons who do not have citizenship of EU or EEA member states, legally residing in the territory of an EU or an EEA member state, 
  • if they are subject to mandatory health insurance or insure themselves voluntarily.

Every foreigner, in order to be covered by health insurance in Poland, must obtain a Personal ID No (PESEL). As well as persons covered by general health insurance, all persons who have Polish citizenship, reside in Poland and/or fulfil the specified income criteria are also entitled to receive healthcare benefits financed from public funds.

The healthcare system guarantees: free access to health services, equal treatment of residents and social solidarity, obligatory contributions to healthcare for persons with an income and the use of private or public care for an additional charge. You need a prescription from a doctor accredited to the National Health Fund to buy medicine at a discount. Prescriptions issued by doctors not accredited to the Fund may have to be paid in full.
 
Health insurance contributions are collected by employers, social insurance institutions, retirement/pension institutions, social security centres, schools and universities, etc. The document which provides confirmation of health insurance cover is the health insurance card.