What is the cost of HR and payroll services in Poland?

What is the cost of HR and payroll services in Poland?
Marek Cieślak

Marek Cieślak

CEO CGO Finance

In today’s globalized business landscape, efficient management of payroll is a cornerstone for any enterprise operating in Poland. Our comprehensive guide delves into the intricacies of payroll in Poland, offering crucial insights into HR and payroll services, their scope, and the associated costs.

Whether you’re exploring the benefits of outsourcing these services or considering an in-house HR department, this article provides a detailed overview of payroll management in Poland.

From calculating salaries to maintaining personnel files and ensuring compliance with labor laws, we cover all the essentials you need to know about payroll services for enterprises in Poland in 2024.

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Payroll in Poland. What do the HR and payroll services for the enterprise consist of?

Before discussing the costs of HR and payroll services, we should first establish what they include. There is no denying that some duties that are part of HR and payroll services have been automated. This concerns, for example, calculating salaries, keeping personnel files and reporting them to ZUS.

Yet, this does not mean that everything can be dealt with only with help of new technologies. It is worth considering what is included in the duties of employees of the HR and payroll department. The commonly used abbreviation HR stands for human resources.

Payroll in Poland. What does the HR and payroll department do?

The main task of an HR and payroll specialist is to manage the human potential of the company. From reporting a new employee to all the necessary registers and databases, through settling remuneration and holiday leaves, to finalising termination of the employment relationship.

Payroll in Poland. What are the responsibilities of the HR and payroll department?

Among the basic duties of employees in the HR and payroll department are:

  • calculating remuneration and preparing payrolls for employees,
  • preparation and settlement of contracts of mandate and contracts for specific work,
  • keeping records of employees’ remuneration,
  • keeping employees’ personnel files, 
  • Registration of employees in the Social Insurance institution [Polish: ZUS], 
  • preparing and submitting ZUS (Social Insurance Institution) and  PIT statements for registering and settlement purposes, 
  • preparing personnel and payroll documentation,
  • maintaining and updating personnel documentation,
  • preparing employees’ annual returns,
  • issuing employment and earnings certificates.
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You should remember that concluding an employment contract is not necessary in every case. It may turn out that a civil law contract or cooperation in the B2B form will be more beneficial for the parties. Yet, improper adjustment of the contract to the form of work may be interpreted as a way to circumvent the law. This may even result in a complete contestation of the validity of a given contract.

As a consequence, a civil law contract may be recognized as an employment contract. Any negative consequences will of course influence the employer. Adequate knowledge of labour law is essential to avoid this type of situation. An experienced specialist will be able to identify the proper form of employment. An initial analysis of the scope of duties and the form of the performance will be enough to do that.

Payroll in Poland. What are the costs of providing HR and payroll services for a company?

The costs of HR and payroll services depend on many factors, two of which play the most important role. The first one is the size of the company, and the second – its location.

As indicated before, a popular factor affecting the cost of such accounting and HR services is the number of hired employees. The cost of payroll service for one employee in Poland can range from 83 PLN to 140 PLN gross. The difference results from the location where the company is based.

The lowest costs for HR and accounting services are in Lubuskie and Kujawsko-Pomorskie Voivodeships. The highest – in the Mazowieckie Voivodship, which should come as no surprise. The cost of HR and payroll services for employees in Poland ranges from 79.87 PLN to 114.88 PLN gross. The average price of HR and payroll services for employees in Poland amounts to 92.92 PLN gross.

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Payroll in Poland. Outsourcing of accounting and payroll services or internal HR department – what is more profitable?

There is no unequivocal answer to the question of whether it is more profitable for the employer to maintain an internal HR department or to delegate HR and payroll responsibilities to the outside company. In practice, a mixed solution is the most common one.

It involves hiring an internal specialist with daily insight into the company’s processes. His main responsibility is to cooperate with a specialized external entity.

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Payroll in Poland. What is the biggest advantage of such a solution?

Above all, cooperation with a specialized office will reduce certain costs. Especially those associated with maintaining IT infrastructure, purchasing specialized software and training employees. Consequently, the main drawback of training in the field of accounting and HR duties is not only their high cost but also the frequency.

It is difficult to predict them, as it depends on the number of changes in the regulations. Outsourcing such services for a predetermined rate allows for greater predictability. You should also remember about the less obvious costs related to the employment of internal specialists. These result from the need to provide employees with a workplace and its equipment.

If this article was interesting for you and you want to know more on the topic it concerned we encourage you to contact us. Specialists from our law firm in Poland, will be happy to help. If you are interested in company registration in Poland visit our dedicated landing page.

FAQs on payroll in Poland

What Do HR and Payroll Services in Poland Consist Of?

They include calculating remuneration, preparing payrolls, maintaining personnel files, registering employees with ZUS (Social Insurance Institution), submitting ZUS and PIT statements, and handling various personnel documentation.

What are the Responsibilities of the HR and Payroll Department in Poland?

The department is responsible for managing the human potential of the company, including settling remuneration, holiday leaves, and finalizing the termination of employment relationships.

How Much Do HR and Payroll Services Cost for a Company in Poland?

Costs vary based on company size and location, with service prices ranging from 83 PLN to 140 PLN gross per employee.

Is Outsourcing Accounting and Payroll Services More Profitable Than an Internal HR Department in Poland?

It depends on the company’s specific needs. A mixed solution, combining an internal specialist with an external entity, is commonly preferred for cost-effectiveness and efficiency.

What Are the Benefits of Outsourcing Payroll in Poland?

Outsourcing can reduce costs related to IT infrastructure, software, and employee training. It also offers predictability in service rates and saves on the costs of maintaining an internal team.

What Factors Affect the Cost of HR and Payroll in Poland?

The main factors include the size of the company and its geographical location, with variations in costs across different regions.

What is the Role of an Internal Specialist in Payroll in Poland?

An internal specialist typically oversees daily company processes and coordinates with external payroll service providers.

How Do Regulatory Changes Impact Payroll in Poland?

Frequent changes in regulations require ongoing training and adaptation, which can be managed more effectively through outsourcing.

What Should Companies Consider When Choosing Between Internal and Outsourced Payroll in Poland?

Companies should consider costs, the complexity of payroll processes, compliance requirements, and the need for specialized expertise.

What is the Average Price of HR and Payroll Services for Employees in Poland?

The average price is approximately 92.92 PLN gross per employee.

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