Severance Pay in Poland: Redundancy, Retirement and Death Payments
Short answer: If a Polish employer with at least 20 staff dismisses you for reasons not related to you personally, you get one, two or three months' severance depending on seniority - for group and individual redundancies alike. Retirement brings one month's pay, and a worker's family receives one to six months after their death.
Losing a job is stressful enough without wondering whether your employer owes you money on the way out. Polish labour law has three built-in severance payments - redundancy pay, a retirement severance and a death severance for the family - and expats on Polish employment contracts have exactly the same rights as Polish citizens. This guide explains who gets what, using the current consolidated texts of the Labour Code (Dziennik Ustaw 2026, item 1245) and the collective redundancies act (DU 2026, item 1195, in force as of 2 September 2026).
Redundancy severance: one to three months' pay
The 2003 act on dismissals for reasons not concerning employees guarantees severance (odprawa pieniężna) when an employer with at least 20 employees ends your contract for reasons on the company's side: restructuring, your position being liquidated, downsizing, or the employer's bankruptcy or liquidation.
The amount depends on how long you worked for that employer (article 8):
- one month's pay if you were employed there for less than 2 years
- two months' pay for 2 to 8 years of service
- three months' pay for more than 8 years
The severance is calculated under the same rules as the cash equivalent for unused holiday, so variable pay and bonuses generally count toward the base. There is one cap: the payment cannot exceed 15 times the minimum wage in force on the day your contract ends. With the 2026 minimum wage at 4,806 zł gross, that ceiling is 72,090 zł - relevant only for high earners.
It applies to individual dismissals too
A common misconception is that severance is only for mass layoffs. Article 10 of the act extends the same right to a much smaller situation: if an employer with at least 20 staff dismisses you - even as the only person let go - and the reasons not related to you personally are the sole reason for the notice or mutual termination, the same 1-3 month scale applies. If you are made redundant at a mid-sized or large company, ask about odprawa by name; employers sometimes stay quiet and wait.
In a genuine collective redundancy (10 people at firms under 100 staff, 10% at firms of 100-299, or 30 people at firms of 300+, all within 30 days) extra protections kick in: the employer must consult the unions or employee representatives, notify the district labour office (powiatowy urząd pracy) in writing, and if it rehires for the same occupational group it should take you back - declare your interest within a year of the termination and the employer should rehire you within 15 months.
Retirement severance: one month, once in a lifetime
When your employment ends because you move to a retirement pension (emerytura) or a disability pension (renta), the Labour Code guarantees a severance of one month's pay (article 92(1)). It is a one-off: if you received it from a previous employer, you cannot claim it again. Many collective agreements and company regulations add more generous retirement packages, but one month is the statutory floor.
Death severance: support for the family
If a worker dies during employment (or while on sickness benefit right after it), the employer pays the family a death severance (odprawa pośmiertna, article 93):
- one month's pay if the employee worked there under 10 years
- three months' pay after at least 10 years
- six months' pay after at least 15 years
It goes to the spouse and to other family members who meet the conditions for a survivor's pension, split into equal parts. If only one family member qualifies, they receive half the amount. One exception: if the employer had insured the worker's life and the insurance payout is at least as high as the severance, no odprawa is due; if the insurance is lower, the employer pays only the difference.
Who is covered
These rules attach to the Polish employment contract (umowa o pracę). They do not apply to civil contracts such as umowa zlecenie or umowa o dzieło, or to B2B contractors - one of many reasons the contract type matters. Citizenship is irrelevant: the Labour Code covers everyone working under a Polish employment contract, whatever their passport.
Frequently asked questions
I work at a small company with 10 employees. Am I entitled to redundancy severance?
No. The statutory redundancy severance only covers employers with at least 20 employees. Your notice period and any unused holiday pay still apply, and your contract or company policy may grant more than the law requires.
Does my seniority from other employers count?
For the redundancy severance, only the period with the employer who is dismissing you counts (with the Labour Code's standard rules on counting prior periods applied where the law says so). For the death severance, likewise only service with the last employer sets the bracket.
Is severance pay taxed?
Statutory severance payments made when an employment relationship ends are exempt from ZUS social-insurance contributions. Income-tax treatment depends on the type of payment and its amount - some statutory severances are tax-exempt, while extra contractual payments can be taxed. For a specific case, check with an accountant.
My employer offered a mutual termination agreement. Do I still get severance?
Yes - the act covers both notice given by the employer and termination by mutual agreement, as long as the reasons lie on the employer's side and the headcount conditions are met.
What should I do if my employer refuses to pay?
Severance claims follow the normal labour-claim route: a written demand to the employer, then the labour court (sąd pracy). The district labour inspectorate (Państwowa Inspekcja Pracy) offers free advice and can intervene on your behalf.
