Global IT Company Scales Polish Workforce Without Local Entity
Challenge
A global IT company wanted to hire software developers in Poland to strengthen its development capacity. However, the company lacked a local legal entity in Poland to manage payroll and employment compliance. The primary challenges included: navigating complex Polish labour laws and tax regulations; ensuring accurate and timely salary payments in Polish Zloty (PLN); managing employment contracts and statutory benefits for local employees; and maintaining compliance with Polish social security requirements and GDPR data protection regulations.
Solution
Brain Source International acted as the company's Employer of Record (EOR) in Poland, providing comprehensive employment and payroll management services. The solution included: onboarding of software developers under locally compliant employment contracts; complete payroll management including salary calculations, tax deductions (12% and 32% progressive income tax rates), and social security contributions (19.48% employer contribution); administration of mandatory benefits including paid annual leave (20–26 days based on tenure), maternity/paternity leave, and sick leave; provision of additional non-mandatory benefits such as private healthcare and performance bonuses to attract top talent; full compliance with Polish labour law, tax regulations, and GDPR requirements; and dedicated support for ongoing payroll administration and employee management.
Results
The company quickly scaled its Polish software development workforce without establishing a local legal entity. Employees received accurate and on-time salary payments in Polish Zloty, fostering trust and satisfaction. The client avoided significant legal risks and administrative burdens associated with direct employment in Poland, allowing the company to focus entirely on business growth and product development. The solution demonstrated the effectiveness of the EOR model for technology companies seeking to access skilled talent in cost-efficient EU markets.