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If you hire engineers in Poland, or work as one, you will meet the same question again and again: B2B contract or employment contract? Foreign employers are often surprised that most senior engineers in Poland invoice as companies. Engineers wonder whether a higher B2B figure really leaves them better off.
This guide explains B2B vs employment in Polish IT with numbers rather than opinions. It covers why the B2B model is so common, a worked cost comparison, the legal and tax basics, what foreign employers get wrong and what engineers weigh. If you are an engineer, see our current jobs. If you are hiring, our page on nearshore teams from Poland and Portugal shows how ITDS handles contracts for you.
| In this guide | |
| The Polish B2B norm Cost comparison Legal and tax basics |
What employers get wrong What engineers weigh FAQ |
B2B vs employment in Poland: why B2B is the norm in IT
On an employment contract (umowa o pracę), an engineer is an employee protected by the Labour Code. On a B2B contract, the engineer runs a sole proprietorship and invoices the client or agency for their services.
B2B has become the norm in Polish IT, especially at mid and senior level, for one simple reason. For the same cost to the company, it usually leaves the engineer with considerably more net income. In exchange, the engineer gives up paid leave, statutory sick pay and much of the Labour Code's protection.
| Employment contract | B2B contract | |
|---|---|---|
| Social security (ZUS) | Shared by employee and employer, deducted from pay | Paid by the engineer as a business owner |
| Paid leave | Yes, 20 or 26 days a year | Usually no, unless the contract includes paid days off |
| Sick pay | Statutory | Only through voluntary sickness insurance, at a lower level |
| Income tax | Progressive scale, 12% and 32% | Choice of flat-rate, linear or progressive scale |
| Notice and protection | Set by the Labour Code | Only what the contract says |
| Admin | Almost none | Invoices, bookkeeping, monthly ZUS and tax payments |
B2B vs employment: a worked cost comparison
The fairest comparison uses the same cost to the company. Here is a simplified example under the rules in force in 2026. A gross salary of PLN 20,000 on an employment contract costs the employer about PLN 24,000 a month, roughly the same as a B2B invoice of PLN 25,000 net.
| Simplified example, 2026 | Employment: PLN 20,000 gross | B2B: PLN 25,000 invoice, 12% flat-rate tax |
|---|---|---|
| Monthly cost to the company | about PLN 24,000 | PLN 25,000 |
| Social security | about PLN 2,700 (employee's share) | about PLN 1,900 (full ZUS incl. sickness) |
| Health contribution | about PLN 1,550 | about PLN 830 |
| Income tax | about PLN 3,100 on average (part of income in the 32% band) | about PLN 2,700 |
| Net per month, yearly average | about PLN 12,600 | about PLN 19,500 before bookkeeping |
| Paid leave and sick pay | Included | None. With 26 unbilled days off, net falls to about PLN 17,000 on average |
On the same budget, B2B leaves the engineer clearly better off in this example, even after unpaid leave. The gap narrows once you add bookkeeping, gaps between projects and the lack of severance. A PLN 25,000 invoice at 168 hours a month is about PLN 150 net per hour, a typical senior level.
This example is simplified. It leaves out the employee capital plan (PPK), tax reliefs, business costs and other tax options. Real results differ, so check your own case with an accountant or a calculator based on current rules. ZUS amounts and thresholds change every year.
| Compare yearly net income at the same cost to the company, not two numbers from a job ad. |
Legal and tax basics
On B2B, the engineer chooses how to be taxed. The three main options are a flat-rate tax on revenue (12% for many software services), a 19% linear tax on profit, or the same progressive scale as employees. Some engineers can also use the IP Box relief on income from software copyright, which requires careful records.
B2B also carries a legal line both sides should respect. If the working relationship looks like employment in practice, with fixed hours, direct supervision and a workplace set by the company, it can be reclassified as employment. This is general information, not legal or tax advice, so involve an adviser for your own situation.
What foreign employers get wrong about B2B in Poland
- Comparing the B2B rate with a gross salary. A B2B rate already includes the engineer's social security, holidays and risk. Compare it with your total employment cost, not with the gross salary on the payslip.
- Treating contractors like employees. Fixed hours, line management and mandatory office presence push a B2B relationship towards employment. Structure the work around deliverables and collaboration instead.
- Ignoring time off. Engineers on B2B still take holidays. Agree in advance how days off work, so planning doesn't break.
- Assuming B2B means short-term. Many B2B engineers stay on the same project for years. Treat them as part of the team.
For employers, the B2B model also changes how costs behave. You pay invoices for the days or hours actually worked, there is no separate employer social security on top, and ending a contract usually follows the notice period you agreed rather than the Labour Code. In return, you have less legal certainty about how long an engineer will stay, so long-term projects and fair rates matter. Engineers on B2B compare offers constantly, and the best ones move quickly if a rate falls behind the market.
Working through a partner such as ITDS removes most of this. We handle the contracts, whether B2B or employment, and you work with the engineer as part of your team.
B2B vs employment: what engineers weigh
For juniors, employment often makes more sense: it brings stability, and the net difference is smaller at lower pay. As experience and rates grow, so does the B2B advantage, which is why many mid and senior engineers, and in some specialisations most of them, work on B2B.
Engineers who choose B2B usually have a few years of experience, a strong position on the market and savings for several months without work. Those who stay employed often value security and benefits, or are planning a mortgage or parental leave.
Engineers also look beyond the monthly figure. They ask how long the project will last, whether there are gaps between assignments, who pays for equipment and training, and how a mortgage application will look with B2B income. A clear answer to each of these questions often wins a candidate more easily than a slightly higher rate.
At ITDS, we work in both models. In your first conversation with a recruiter, you can ask openly for the rate in each form and how days off work on the project.
| Looking for a project on B2B or employment? We recruit IT specialists for long-term projects with international clients. See jobs |
B2B vs employment in Poland: FAQ
Because for the same cost to the company, B2B usually leaves them with considerably more net income. In exchange, they give up paid leave, statutory sick pay and much of the Labour Code's protection.
Full social security contributions, including voluntary sickness insurance, come to about PLN 1,930 a month in 2026. A health contribution comes on top and depends on the tax option and revenue. New businesses can pay reduced contributions for a limited time.
In our simplified example, a gross salary of PLN 20,000 costs the company about as much as a B2B invoice of roughly PLN 24,000–25,000 net. At that invoice, the engineer's net income on B2B is clearly higher, even after unpaid leave.
Not by law. Some contracts include paid days off, but that is a matter of negotiation. Usually, a day off means a day without an invoice.
Yes, if in practice it has the features of employment, such as fixed hours, direct supervision and a workplace set by the company. This is general information, so check with a legal adviser if in doubt.
Hire in Poland, or find your next projectEngineers: see our current jobs and ask your recruiter for the rate in each contract form. Companies: we find, vet and contract senior engineers in Poland and Portugal, on B2B or employment, so you can focus on the work. Learn more about our nearshore teams. |