Frequently Asked Questions

When Do Restrictions Apply?

The main restriction concerns JDG owners from countries outside the European Union, the European Economic Area and Switzerland.

If such an entrepreneur does not have a permanent place of residence in Poland, they generally cannot:

• obtain a work permit for the employee (zezwolenie na pracę);
• register a declaration of entrusting work to a foreign national (oświadczenie o powierzeniu wykonywania pracy cudzoziemcowi);
• submit a notification of entrusting work to a foreign national (powiadomienie o powierzeniu pracy cudzoziemcowi).

A business address registered in CEIDG or a temporary residence registration does not replace the entrepreneur’s permanent place of residence.

In practice, this means that such a JDG owner can hire a Polish citizen or a foreign national who already has the right to work without any additional procedure on the employer’s side. If one of the procedures listed above is required, completing the employment formalities will most likely not be possible.

Different rules apply to entrepreneurs from the EU, EEA and Switzerland, so their status should be assessed separately.

Who Can Be Hired Without a Work Permit?

Additional work authorisation is generally not required for citizens of Poland, the EU, the EEA and Switzerland.

Among citizens of other countries, the right to work without a permit may apply, for example, to:

• holders of a permanent residence permit in Poland;
• holders of an EU long-term resident permit issued in Poland;
• holders of a Polish Card (Karta Polaka);
• people with refugee status or subsidiary protection;
• graduates of Polish universities;
• certain full-time students.

This is not a complete list. In each case, you should check the exact basis on which the person is staying and working in Poland and whether their documents will remain valid on the date they start work.

When Does Student Status Allow Someone to Work Without a Permit?

There is an additional point to consider when hiring students. A student ID card alone does not prove that a person has the right to work without a permit.

Since 1 July 2026, the exemption applies if the person:

• studies in Poland on a full-time programme (studia stacjonarne);
• attends a public academic university or an educational institution included in the current list maintained by Poland’s Ministry of the Interior and Administration (MSWiA);
• can provide proof of current student status;
• is staying in Poland legally.

Before signing the contract, it is advisable to request a current certificate from the university confirming the form of study. Part-time, evening or other non-full-time studies do not in themselves exempt the student from the work authorisation procedure.

A Special Case: Ukrainian Citizens

A notification procedure is often used when hiring Ukrainian citizens.

If the person benefits from temporary protection and has active PESEL UKR status, the employer must submit a notification through praca.gov.pl. The notification must be submitted within seven days of the employee’s start date.

Student status does not remove the obligation to submit the notification. The person therefore cannot be hired solely on the basis of a certificate from their university.

The notification procedure also temporarily applies to Ukrainian citizens who do not benefit from temporary protection but are staying in Poland legally on another basis. The transitional period for these individuals remains in effect until 4 March 2029.

For example, suppose the JDG owner is a Belarusian citizen holding a temporary residence permit, while the future employee is a Ukrainian citizen with PESEL UKR status. A notification is required for the employee to work legally. If the entrepreneur does not have a permanent place of residence in Poland and therefore cannot submit the notification to the relevant district labour office (powiatowy urząd pracy), the employment cannot be completed legally.

What Should Be Checked Before Signing the Contract?

Start with two questions: what status does the JDG owner have, and on what basis is the future employee allowed to work in Poland?

If the entrepreneur is a citizen of a country outside the EU, EEA or Switzerland, you should check the basis of their stay and whether they have a permanent place of residence in Poland.

For the future employee, you should verify:

• citizenship;
• legal status of stay;
• the basis for their right to work;
• the validity period of their documents;
• whether a work permit, declaration or notification is required.

Before the employee starts work, you must obtain documents confirming their legal stay and right to work and retain copies of those documents.

A residence card, student ID or verbal assurance from the employee is not sufficient on its own. If there is any uncertainty about the person’s right to work, it is better to verify it before signing the contract rather than after they have started working.

If you run a JDG in Poland and plan to hire a foreign national, ELP Office can help you review the documents and determine which steps need to be completed before the employee starts work.

This material is provided for informational purposes only and does not constitute individual legal advice.

Comparison of the minimum wage in 2026 and 2027

Only one increase is planned for 2027, effective from 1 January. The approved regulation does not provide for a second increase in July.

Who is covered by the new minimum wage

The amount of PLN 4,950 gross applies to employees working full-time under an employment contract (umowa o pracę).

For part-time employees, the minimum wage is calculated proportionally to their working time.

The same rules apply to Polish citizens and foreign nationals working in Poland. An employee’s nationality does not allow an employer to set their salary below the statutory minimum.

The minimum wage does not always mean only the basic salary

The minimum wage does not necessarily have to be equal to the basic salary specified in the employment contract.

When determining whether the statutory minimum has been met, the total value of all salary components that may legally be included in the minimum wage is taken into account. These may include certain bonuses and allowances.

The following payments are not included in the minimum wage:

• overtime pay;
• night work allowance;
• length-of-service allowance;
• allowance for work in special conditions;
• jubilee award;
• severance pay related to retirement or entitlement to a disability pension.

Employers should therefore review not only the employee’s total payment but also the structure of their remuneration.

How much will the employee receive net?

The net amount depends on the employee’s age, tax reliefs, submission of the PIT-2 form, participation in PPK, tax-deductible costs and other individual circumstances.

Under a standard calculation for an employee over the age of 26 who:

• has submitted PIT-2;
• applies standard tax-deductible costs;
• does not participate in PPK;
• does not use any additional tax reliefs,

a salary of PLN 4,950 gross will amount to approximately PLN 3,703.93 net.

For comparison, with the 2026 minimum wage of PLN 4,806 gross, the standard net payment is approximately PLN 3,605.85.

This means that, under a standard calculation, the employee will receive approximately PLN 98 net more per month.

This is an estimated calculation. The actual payment may differ depending on the employee’s individual circumstances.

How much will an employee cost the employer?

The employer’s costs are not limited to the employee’s gross salary. The employer also finances its share of ZUS contributions, as well as contributions to the Labour Fund and the Guaranteed Employee Benefits Fund.

Assuming a standard accident insurance rate of 1.67% and excluding PPK, the estimated calculation is as follows:

The total cost of employing one person receiving the minimum wage will increase by approximately PLN 173 per month, or around PLN 2,077 per year.

Actual costs may differ, for example, due to a different accident insurance rate, the employee’s participation in PPK or the employer’s exemption from certain contributions.

Minimum hourly rate under a mandate contract in 2027

From 1 January 2027, the minimum hourly rate for mandate contracts (umowa zlecenie) and certain service agreements will amount to:

PLN 32.30 gross per hour.

This is a gross, not net, amount. The amount received by the contractor depends, among other things, on their age, student status, other social insurance titles and applicable tax reliefs.

The minimum hourly rate applies not only when an hourly payment is explicitly stated in the contract. If the parties agree on a monthly or fixed amount, the payment divided by the number of hours worked must also not be lower than PLN 32.30 gross per hour.

A mandate contract must specify how the number of hours worked will be confirmed. This may include:

• an electronic time record;
• a timesheet;
• a contractor’s report;
• another method specified in the contract.

If the contract is concluded for a period longer than one month, remuneration calculated in accordance with the minimum hourly rate must be paid at least once a month.

The minimum hourly rate may also apply to certain sole proprietors if they perform the services personally and do not employ workers or engage other contractors.

Exceptions apply to certain contracts. For example, the minimum hourly rate may not apply if the contractor independently decides where and when the service is provided and receives remuneration based exclusively on commission. All statutory conditions must be met simultaneously for the exception to apply.

What employers should check before 1 January 2027

Employers and clients engaging contractors should take the following steps in advance:

1. Identify employees whose current salary is lower than PLN 4,950 gross.
2. Review mandate contracts and other agreements covered by the minimum hourly rate.
3. Check whether working hours under mandate contracts are recorded correctly.
4. Prepare written amendments to contracts where necessary.
5. Update payroll system settings and HR documentation.
6. Include the increased costs in the company’s 2027 budget.
7. Check which bonuses and allowances may be included in the minimum wage and which must be paid separately.
8. Provide updated information to the accountant or payroll and HR specialist.

If a contract specifies a fixed amount below the new statutory minimum, a written amendment to the remuneration terms will generally be required.

If the contract instead provides for payment of the current statutory minimum wage without specifying a fixed amount, the salary will change automatically together with the rate established by law. Nevertheless, the company’s payroll system and documentation should still be reviewed.

How the increase will affect business owners

The minimum wage affects more than employee salaries. It also determines certain contributions and limits applicable to business owners.

Preferential ZUS contributions

Business owners using preferential social insurance contributions during their first 24 months calculate them based on an amount not lower than 30% of the minimum wage.

In 2027, the minimum contribution base will amount to:

PLN 4,950 × 30% = PLN 1,485.

At the currently applicable rates, the estimated amount of social insurance contributions, including voluntary sickness insurance, will be approximately PLN 469.85 per month, excluding the health insurance contribution.

The final contribution amounts for 2027 should be checked again after ZUS publishes its official tables.

The minimum contribution base of PLN 1,485 will also be relevant when determining the lower contribution threshold under the Mały ZUS Plus scheme.

Standard ZUS social insurance contributions without reliefs are calculated using a different basis — the projected average salary. Their amount therefore cannot be determined solely on the basis of the new minimum wage.

Minimum health insurance contribution

Under the rules applicable on the publication date of this article, the minimum health insurance contribution for business owners taxed under the progressive tax scale or flat-rate income tax is calculated as 9% of the minimum wage.

If the rules remain unchanged, from the beginning of the new contribution year in February 2027, the minimum health insurance contribution will amount to:

PLN 4,950 × 9% = PLN 445.50 per month.

For businesses using the lump-sum tax on registered revenue (ryczałt), the health insurance contribution is calculated according to different rules and depends on annual revenue and the average salary in the enterprise sector.

Unregistered business activity

The quarterly revenue limit for unregistered business activity (działalność nierejestrowana) is equal to 225% of the minimum wage.

With a minimum wage of PLN 4,950, the limit in 2027 will amount to:

PLN 11,137.50 in revenue per quarter.

Once the applicable limit is exceeded, the business must be registered in CEIDG within the statutory deadline.

What other amounts will change together with the minimum wage?

The increase in the minimum wage will also affect other calculations, including:

• the night work allowance;
• the portion of salary protected from certain deductions;
• minimum compensation in certain employment law disputes;
• the lower threshold for certain insurance contributions;
• the maximum severance payment in the event of termination for reasons not attributable to the employee.

For example, the maximum severance payment calculated as 15 times the minimum wage will amount to PLN 74,250 in 2027.

The exact night work allowance depends on the number of working hours in a particular month and must therefore be calculated separately for each month.

Frequently asked questions

Does an employee’s salary need to be increased if they already earn more than PLN 4,950 gross?

No. The new amount establishes the minimum level of remuneration but does not require employers to increase every salary in the company automatically.

However, employers should review their internal remuneration system if other rates, bonuses or allowances are linked to the minimum wage.

Is the PLN 32.30 rate under a mandate contract gross or net?

It is a gross rate. The net amount depends on the contractor’s social insurance contributions and tax status.

For example, the calculation will differ for a student under the age of 26 and for a person whose mandate contract is their only title to social insurance.

Can a fixed monthly amount be paid under a mandate contract?

Yes, but after dividing it by the actual number of hours worked, the remuneration cannot be lower than the statutory minimum hourly rate.

Will there be another increase in July 2027?

No. The approved regulation introduces the new amounts from 1 January 2027 and does not provide for a second increase during the year.

Does the minimum wage also apply to foreign nationals?

Yes. A foreign national legally employed in Poland is entitled to the minimum wage on the same terms as a Polish citizen.

In addition, the salary specified in documents related to the employment of a foreign national cannot violate the applicable minimum remuneration requirements.

Prepare for the new rates in advance

Although the increase amounts to only 3%, it will affect more than the amount paid directly to employees. Employers must also account for ZUS contributions, hourly rates under mandate contracts and limits linked to the minimum wage.

If you employ staff or work with contractors under mandate contracts, ELP Office can help you verify the calculations, prepare a payroll budget and correctly account for remuneration and contributions in 2027.

Contact us to prepare your company for the new rates in advance.

This material is provided for informational purposes only and does not constitute individual legal, tax or accounting advice. We recommend consulting an appropriate specialist regarding your specific circumstances.

What Is Form W-8BEN?

The document’s full name is Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals).

W-8BEN is intended for individuals and is used to certify their foreign status to a U.S. payer or financial institution.

Where applicable to a particular type of income, a properly completed form also allows the individual to claim benefits provided under an international tax treaty.

Important: you do not submit Form W-8BEN directly to the IRS. It should be provided to the organization that requested it, such as a U.S. client, broker, bank, or payment platform.

Who May Need Form W-8BEN?

The form is commonly requested from people who live in Poland and receive payments connected with the United States. This may include freelancers and owners of sole proprietorships, known in Poland as JDG, who work with U.S. clients; authors and digital content creators; recipients of royalties; investors holding U.S. securities; and users of certain international platforms.

However, the reason for completing the form will depend on the type of income received.

Form W-8BEN is not intended for Polish limited liability companies, such as a sp. z o.o., or other legal entities. Foreign companies in similar situations generally use Form W-8BEN-E.

Do I Have to Pay U.S. Tax If My Client Is American?

Not necessarily. If an entrepreneur lives and works in Poland and provides services to a U.S. client from Poland, the fact that the client is based in the United States does not usually mean that 30% U.S. tax must be withheld from the payment.

However, the U.S. client may still request Form W-8BEN to confirm that the contractor is a foreign beneficial owner of the income.

The rules may be different if the work is physically performed in the United States or if the payment concerns another type of income, such as dividends or royalties. In such cases, the type of income, tax residency, and the provisions of the tax treaty between Poland and the United States must be considered.

There is therefore no universal rule that “W-8BEN reduces the tax rate from 30% to 15%.” The applicable rate and tax treatment depend on the specific circumstances.

How to Complete Form W-8BEN

The form consists of three parts: identification of the beneficial owner, a claim for tax treaty benefits, and certification of the information provided.

You can download the form from the official IRS website: https://www.irs.gov/pub/irs-pdf/fw8ben.pdf

Part I — Identification of Beneficial Owner

Line 1 — Name of individual who is the beneficial owner

Enter your first and last name.

Line 2 — Country of citizenship

Enter your country of citizenship.

Line 3 — Permanent residence address

Enter your permanent residence address in the country where you are a tax resident. Do not use a P.O. box or an address used only for receiving correspondence.

Line 4 — Mailing address

Complete this field if your mailing address is different from the address entered in Line 3.

Line 5 — U.S. taxpayer identification number

Enter your U.S. SSN or ITIN if you have one and it is required in your situation.

In many typical cases, a Polish entrepreneur working from Poland does not need to obtain an ITIN specifically for this purpose. However, the requirements depend on the type of income and the tax treaty benefit being claimed.

Line 6a — Foreign tax identifying number

Enter your foreign tax identification number, or FTIN.

In Poland, the relevant identifier may be a NIP or PESEL number. An owner of a JDG should use their NIP. PESEL is primarily used as a tax identifier by individuals who do not conduct business activity and do not fall into another category of taxpayers required to use NIP.

Line 6b — FTIN not legally required

Check this box if the law of your country of tax residence does not require you to have a foreign tax identification number. If you have a Polish NIP or PESEL number, this box is generally left unchecked.

Line 7 — Reference number

This field is optional. You may enter an account number, client number, or another identifier if requested by the client or platform.

Line 8 — Date of birth

Enter your date of birth in MM-DD-YYYY format. For example, May 18, 1994 should be entered as 05-18-1994.

Part II — Claim of Tax Treaty Benefits

Complete this part if you are claiming benefits under a tax treaty between the United States and your country of tax residence.

Line 9 — enter the country in which you are a tax resident for the purposes of the treaty. If you are a tax resident of Poland, enter Poland.

Line 10 is not always required. Complete it if claiming a particular benefit requires you to specify the relevant tax treaty article, type of income, applicable rate, or fulfillment of additional conditions.

Do not copy information into Line 10 from someone else’s example. The content of this field depends on the type of income and the specific treaty benefit you are claiming.

If you are not claiming tax treaty benefits, you may leave Part II blank. Form W-8BEN can still be used to certify your foreign status. The IRS explicitly states that the form should be provided to the payer regardless of whether the individual is claiming a reduced rate of withholding or an exemption.

Part III — Certification

In the final part, you certify that the information provided on the form is correct and complete.

If you are completing Form W-8BEN yourself, you must provide:

Signature of beneficial owner — sign the form. If you are completing a paper form, provide a handwritten signature.

Date — enter the date in MM-DD-YYYY format.

Print name of signer — print the first and last name of the person signing the form.

If the form is signed by an authorized representative, that person must have the appropriate authority and check the box stating, “I certify that I have the capacity to sign…”. Where required, a power of attorney or a copy of it should be attached to the form.

Important: Form W-8BEN may be signed electronically if the organization receiving the form accepts electronic signatures. Simply typing a name in the Signature field is not sufficient. The electronic signature must make it possible to confirm that the document was genuinely signed by an authorized person.

How Long Is Form W-8BEN Valid?

Form W-8BEN is generally valid from the date it is signed until December 31 of the third calendar year following the year in which it was signed.

For example, if the form is signed in September 2026, it will generally remain valid until December 31, 2029.

If your circumstances change and the information provided on the form becomes incorrect, you must submit a new Form W-8BEN within 30 days. This may be necessary, for example, if your tax residency changes.

Common Mistakes When Completing Form W-8BEN

One of the most common mistakes is assuming that having a U.S. client automatically means that the payment is U.S.-source income. For services, the IRS generally considers where the work is physically performed.

Another mistake is entering a PESEL number as the Foreign TIN despite operating a JDG. For a Polish entrepreneur, the relevant tax identification number is generally NIP.

Citizenship and tax residency are also commonly confused. Line 2 asks for citizenship, while eligibility for treaty benefits in Part II depends on tax residency.

Another mistake is using Form W-8BEN for a sp. z o.o. or another company that is a legal entity. Form W-8BEN-E is intended for foreign legal entities.

Finally, do not copy a tax treaty article or withholding rate from someone else’s example. Dividends, royalties, and payments for services are subject to different tax rules.

Do I Have to Pay Tax in Poland After Completing Form W-8BEN?

Form W-8BEN primarily concerns U.S. withholding and reporting rules. It does not replace tax reporting in Poland.

If you are a Polish tax resident or operate a JDG in Poland, income received from a foreign client must be properly recorded in your Polish accounts and taxed according to your chosen form of taxation and the nature of the transaction.

If tax was withheld abroad, you must also determine how the rules for eliminating double taxation apply.

Form W-8BEN should therefore not be treated as a “tax return.” It is a document that helps the U.S. payer correctly determine your status and the applicable withholding rules.

What Should You Do If a U.S. Client Sends You Form W-8BEN?

A request to complete the form is standard practice and does not mean that you have a tax problem.

Before completing it, check three things: where you are a tax resident, what type of income you receive, and where the work is physically performed.

If you operate a JDG in Poland and are unsure which tax identification number to provide, whether you should complete Part II, or how to account for payments from a U.S. client in your Polish bookkeeping, ELP Office can review your situation and help you handle the accounting correctly.

This material is provided for informational purposes only and does not constitute individual legal, tax, or accounting advice. We recommend consulting an appropriate specialist regarding your particular circumstances.