What is - «umowa o pracę»
The “Umowa o pracę”contract (work)
“Umowa o pracę”is the main and most common type of employment contract in Poland.
It can be concluded by Polish employers both with the citizens of Poland and the foreigners, who will provide services in Poland underthe requirements of the law.
Depending on the situation, the “Umowa o pracę” contract may be concluded:
for an indefinite period— umowa o pracę na czas nieokreślony
for a fixed period — umowa o pracę na czas określony
for a probation period — umowa o pracę na czas próbny.
Note that the contract for a fixed period can be concluded only twice and must not exceed 33 months total, after that the employer will be obliged to provide the employee with an employment contract for an indefinite period.
The contract for a probation period can be concluded for no longer than 3 months, however, such a contract certainly does not guarantee further employment with this employer.
Under Polish law, it is not necessary to conclude a contract in writing immediately. It is enough to have a simple agreement between the employee and the employer regarding the salary, time and place of work, as well as the date of its beginning.
However, a written contract will still need to be prepared within 7 days, and the employer will have to inform the authorities about the fact of employment.
As of January 1, 2019, the minimum gross salary is 2250 PLN*
Traditionally, an “umowa o pracę” employment contract offers:
paid vacation: 21-26 days (depending on the length of service)
ZUS/NFZ Social and Health Insurance guarantee
overtime pay (so-called “nadgodziny”)
the minimum wage.
We would like to note that the Ministry of Labor, Family and Social Policy is working on a project that will provide everyone with the 26-day leave, regardless of the length of service (time worked).
Also, based on such a contract, or rather, based on the fact of work for an employer, it will be possible to apply for the residency permit.
If you are not exempted from the requirement to obtain a work permit (does not have the Pole's Card, the student status, etc.), then the employer will be required to register the necessary documents for you, such as:
the working invitation — oświadczenie
the work permit — zezwolenie na pracę
the labor market test — opinia starosty.
Taxes under the “umowa o pracę”contract:
When agreeing with your employer for the gross amount (excluding taxes), remember that this amount is subject to deduction of the necessary taxes to the treasury, and after that, you will receive a net amount (including taxes) on your account.
Let's look at the numbers using the example of the minimum gross salary of PLN 2250:
219,60 — ZUS contributions
33,75 — disability contributions
55,13 — sickness insurance
174,74 —NFZ contributions
133,00 —PIT contributions (the individual income taxes).
An employer will also make the necessary social and medical contributions, which means that for you to receive PLN 2250 (gross), the employer will pay PLN 2710.81.
After the deduction of taxes, the employee receives PLN 1633.78 net.
When deciding to grant a loan, banks often analyze the type of contract under which the employee is employed, and it is preferable to have a traditional “umowa o pracę” contract.
*Data: Information about the minimum wage in 2019 is based on the order of the Council of Ministers of the Republic of Poland from January 11, 2018: Rozporządzenie Rady Ministrów z dnia 11 września 2018 r. w sprawie wysokości minimalnego wynagrodzenia za pracę oraz wysokości minimalnej stawki godzinowej w 2019 r.— see the original document on the Sejm website: prawo.sejm.gov.pl/isap.nsf/DocDetails.xsp