Employment contract or JDG: what to choose for an IT professional in Poland?

Jana Podoroha
Aug 28
2 min read

Today, many IT professionals and relocators in Poland are faced with a choice: how is it better to formalize a job - through an Umowa o pracę (employment contract) or JDG (analogous to an individual entrepreneur, work in a B2B format)? Let's analyze the main pros and cons of each option.

Employment contract or JDG?

🛶 Employment contract = stability

👍 Pros

Social guarantees: paid vacation (20–26 days), sick leave and other benefits.
The employer calculates and pays taxes and ZUS himself.
Additional bonuses: Multisport, VHI, corporate benefits.
Protection during dismissal: notice period, compensation.

👎 Cons

Net income is lower: a significant portion goes to taxes and contributions.
Less flexibility: fixed schedule, office, tied to the Polish market.
Contractual restrictions: non-compete, preservation of trade secrets.

🏄 JDG (IP) = freedom and more money

👍 Pros

Freedom: you choose your own clients, projects, and schedule.
You can work not only with Polish, but also with foreign companies.
Net income is higher: • lump sum for IT - 8.5% or 12%, • preferential ZUS for the first 2.5 years.
Ability to write off expenses (equipment, training, transportation).
Growth potential: you can hire employees and scale your business.

👎 Cons