Poland as the destination for Shared Services Centers

22 Poland as the destination for Shared Services Centers
2 .8 Legal aspects of employment in Poland
Employment conditions are regulated by the Labor Code, which applies to both Polish citizens
and foreigners employed in Poland. In order to be employed in this country, foreigners must
obtain a work permit from the relevant administration authority, barring specific exemptions 22 .
Remuneration is usually negotiated between the employer and employee, unless it is defined
in a collective labor agreement. Every year, the Minister of Economy, Labor and Social Policy
determines the minimum level of a monthly gross remuneration (PLN 1,276 in 2009). Starting
this year the personal income tax rates paid by individuals have been reduced and currently
amount to 18% (for annual income not higher than PLN 85,528) and 32% (for income above
that amount). Employees are also obliged to pay a share of their health and social insurance
contributions, which is deducted from their salaries and paid on their behalf by the employer
along with his share. The health insurance contribution rate is 9%. The division of social
insurance contributions is as follows:
Table 6
Specification of the employee’s social insurance contributions
Contribution type Employer’s share Employee’s share Total
Pension Fund 9.76% 9.76% 19.52%
Disability Fund 4.50% 1.50% 6.00%
Illness Fund – 2.45% 2.45%
Accident Fund 0.67 – 3.60% – 0.67 – 3.60%
Employees’ Guaranteed
Benefits Fund
0.10% – 0.10%
Labor Fund 2.45% – 2.45%
Source: KPMG
22 For more details please see Legal aspects of business operations in Poland – Labor regulations (forms of employment) at kpmg.pl
© 2009 KPMG Sp. z o.o. a Polish limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International,
a Swiss cooperative. All rights reserved.