# The India Employee Benefits Stack for Polish companies

> Polish parents are used to ZUS and NFZ handling the statutory layer while a private medical package and a sports card make the offer competitive. In India the statutory health layer stops at ₹21,000 a month, GHI must be designed with parents in mind, and with no agreement in force EPF applies to Polish assignees from day one.

By Akshay Golechha, Chief Business Officer at Plum (https://www.linkedin.com/in/akshaygolechha/). Published by Plum (https://www.plumhq.com). Canonical: https://www.plumhq.com/india-benefits-stack/poland. Updated 2026-10-05. Part of The India Employee Benefits Stack: https://www.plumhq.com/india-benefits-stack.

## In short

- India has no equivalent of NFZ cover for salaried staff above ₹21,000 a month. A Polish private medical package maps to Group Health Insurance, which is primary cover built around hospitalisation, with outpatient care as an add-on.
- ZUS pension and disability contributions map to EPF at 12% + 12% of basic, PPK has no separate Indian equivalent, and accident insurance maps to the Employees' Compensation Act plus Group Personal Accident.
- The India–Poland social security agreement, signed on 25 November 2024, is not yet in force. Polish staff working in India are International Workers and join EPF from day one on full salary.

## Questions

### Is there a social security agreement between India and Poland?

Signed, but not in force. It was signed in Warsaw on 25 November 2024, and Poland's Council of Ministers approved the ratification bill in April 2025, but it applies only after ratification instruments are exchanged. Until then, Polish nationals on Indian payroll are International Workers and contribute to EPF from day one on full salary. Re-check the status before each posting.

### Does a Polish private medical package work in India?

Not as a substitute for insurance. Indian employers buy Group Health Insurance, which pays hospital bills cashless at network hospitals up to the sum insured: ₹5,00,000 is the India median and ₹10,00,000 what global startups carry. Outpatient access, the strength of a Polish package, needs an OPD add-on. GHI is not legally required, but candidates hired at ₹8 LPA and above expect it.

### Do we need PPK or an equivalent in India?

No separate plan is required. EPF already covers retirement savings at higher rates than PPK: 12% of basic plus DA from the employer, 8.33% of it to the pension scheme, and 12% from the employee, at establishments with 20+ employees. The National Pension System (NPS) is an optional top-up if the group wants one.

### Should our India policy cover parents?

Decide it early. Parents are the largest claims category by relationship in India, about 40% of claims in Plum's data. Global startups in India carry a ₹10,00,000 sum insured against an India median of ₹5,00,000. Covering parents raises the premium, so settle whether the employer pays, the employee co-pays, or parents are left out.

### How much annual leave do Indian employees get?

Less than in Poland, where the Labour Code gives 20 or 26 days. In India leave is set by state Shops and Establishments Acts or the Factories Act: earned leave is typically 12 to 18 days a year, plus casual and sick leave. Public holidays vary by state, with three national holidays.

## What changes when you come from Poland

### Assignees from Poland and India's EPF

**The rule.** Foreign nationals employed in India are International Workers under EPF. They must join from day one, with contributions on full salary: the ₹15,000 wage ceiling does not apply.
**Poland and India.** India and Poland signed a social security agreement on 25 November 2024, but it is not yet in force. Until it is, staff from Poland on Indian payroll are International Workers: they join EPF from day one on full salary and can generally withdraw only at 58 or on permanent incapacity. Re-check its status before each posting.

### Mapping Polish benefits to India

**At home.** ZUS pension, disability, sickness and accident insurance, the 9% NFZ health contribution, PPK with a 1.5% basic employer contribution and, commonly, a private medical package from a network such as LUX MED or Medicover plus a subsidised sports card.
**In India.** EPF for pension, Group Health Insurance (GHI) as primary health cover, and the Employees' Compensation Act plus Group Personal Accident (GPA) for accidents. Gratuity is statutory: fund it through an insured gratuity scheme. A sports card is an optional wellness perk, not a substitute for GHI.

### Overlap between Warsaw and India

**Time difference.** India is 3½ hours ahead of Warsaw during Polish summer time (late March to late October) and 4½ hours ahead in winter. India has no daylight saving, so the overlap shifts twice a year; Warsaw mornings meet Indian afternoons.
**What to set up.** Agree who in India signs off endorsements, claims escalations and renewals, so nothing waits for headquarters' business hours.

### India–Poland tax treaty

**Treaty.** India and Poland have a double taxation avoidance agreement from 1989, amended by a protocol signed in 2013 and in force since 2014. Short visits are usually exempt from Indian tax under its 183-day and employer conditions; check the exact article before relying on it.
**Secondments.** Long secondments can create a permanent establishment for the parent. Structure recharges and employment contracts with a tax advisor before staff move.

## What you call it in Poland, and what it is called in India

In Poland the National Health Fund (NFZ) provides public health care, funded by a 9% contribution deducted from the employee, and employers add a private medical package (pakiet medyczny) for faster access to doctors and specialists. In India there is no public layer for most salaried staff. An employee earning more than ₹21,000 a month has no statutory health cover, and below that line sits ESI, a government scheme. Group Health Insurance (GHI) is therefore primary cover, built around hospitalisation rather than outpatient access.

| At home in Poland | In India | What changes for the employer |
| --- | --- | --- |
| Health insurance contribution (Składka zdrowotna (NFZ)): A 9% contribution deducted from the employee's pay, funding public health care through the National Health Fund (NFZ). | ESI for employees earning up to ₹21,000 a month gross | ESI costs 3.25% employer and 0.75% employee, and only below the ceiling. Above it there is no statutory health cover and no public fund to fall back on, so GHI is the employee's main protection. |
| Private medical package (Pakiet medyczny): Employer-funded subscription to a private clinic network such as LUX MED or Medicover, mainly for fast access to doctors and specialists. | Group Health Insurance (GHI), with outpatient (OPD) cover as an add-on | GHI reverses the emphasis: hospitalisation first, outpatient care only with an add-on. It is not legally required, but candidates hired at ₹8 LPA and above expect it. India's median sum insured is ₹5,00,000; global startups in India carry ₹10,00,000. |
| Pension and disability insurance (Ubezpieczenie emerytalne i rentowe (ZUS)): Pension 19.52% of pay, split equally; disability 8%, of which the employer pays 6.5%. Both stop at PLN 282,600 of annual pay in 2026. | EPF and EPS (Employees' Provident Fund and Pension Scheme) | 12% of basic plus DA from the employer, of which 8.33% goes to EPS, and 12% from the employee, at establishments with 20+ employees. The statutory wage ceiling is ₹15,000 a month, but most MNC subsidiaries contribute on full basic; for International Workers it does not apply. |
| Sickness insurance (Ubezpieczenie chorobowe): A 2.45% contribution paid by the employee; ZUS pays sickness and maternity allowances after an initial employer-paid period of sickness. | ESI sickness benefit for ESI members; otherwise paid sick leave under state law | Outside ESI no insurer pays a sickness benefit. Sick leave comes from the state Shops and Establishments Act or the Factories Act, and the employer pays it. |
| Accident insurance (Ubezpieczenie wypadkowe): Employer-paid ZUS contribution of 0.67% to 3.33% depending on risk; 1.67% for employers with up to nine insured people. | Employees' Compensation Act 1923 (or ESI where covered) plus Group Personal Accident (GPA) | The Employees' Compensation Act covers employees who are not in ESI, and the employer insures it. GPA is the usual voluntary add-on for accidental death and disability. |
| Employee capital plans (PPK (Pracownicze Plany Kapitałowe)): Auto-enrolment savings plan: the employer pays 1.5% of pay (and up to 2.5% more voluntarily), the employee 2%, plus state top-ups. | No separate equivalent; EPF is already a mandatory savings scheme, and the National Pension System (NPS) is optional | EPF already does PPK's job at higher rates: 12% from each side on basic plus DA. Employers who want a voluntary top-up can offer NPS, but nothing requires it. |
| Company social benefits fund (ZFŚS (Zakładowy Fundusz Świadczeń Socjalnych)): A fund employers with 50+ full-time-equivalent staff on 1 January must create, financing holidays, events and hardship support. | No statutory equivalent | Nothing to fund. Indian welfare duties are specific instead, such as a crèche at 50+ employees under the Maternity Benefit Act. |
| Sports card (Karta sportowa (Multisport)): Employer-subsidised access card for gyms and sports facilities, a common office perk, often co-paid by the employee. | Wellness programmes or gym partnerships; no statutory link | Optional in India. It does not replace health cover, which is the benefit candidates hired at ₹8 LPA and above expect. Budget for GHI first, then add wellness. |
| Annual leave (Urlop wypoczynkowy): 20 days a year with under 10 years' service, 26 days after; years of education count towards service. | Earned leave under the state Shops and Establishments Act (offices) or the Factories Act (factories) | Earned leave is typically 12 to 18 days a year, plus separate casual and sick leave. Public holidays vary by state, with three national holidays. Matching 26 days is a policy choice, not a requirement. |
| Maternity leave (Urlop macierzyński): Maternity leave paid by ZUS as a maternity allowance, not by the employer. | Maternity Benefit Act: 26 weeks of full pay for the first two children, 12 weeks from the third; no statutory paternity leave under central law | In India the employer pays the salary (ESI covers it for ESI members). A crèche is required at 50+ employees. GHI covers the delivery: about ₹1 lakh for a normal delivery, ₹1.25 lakh for a C-section. |
| Retirement severance (Odprawa emerytalna): A statutory lump sum paid on retirement under the Labour Code, often increased by collective agreements. | Gratuity under the Payment of Gratuity Act 1972, now part of the Code on Social Security | Gratuity is owed on any exit after five continuous years (one year for fixed-term staff), not only retirement: 15 days' last drawn salary per year of service, capped at ₹20 lakh. Provision it from day one. |

## What Polish companies get wrong when they set up in India

1. **A private medical package covers what matters; hospitals are public.** In India the public layer stops at ₹21,000 a month. Above it, a hospital bill is paid by Group Health Insurance or by the employee. GHI must cover hospitalisation first; outpatient access, the core of a Polish package, is an add-on.
2. **A clinic-network subscription works in India the same way.** Indian employers buy insurance, not clinic subscriptions. GHI pays network hospitals cashless up to the sum insured: ₹5,00,000 is the India median, ₹10,00,000 what global startups carry. A normal delivery costs about ₹1 lakh, a C-section about ₹1.25 lakh.
3. **Family cover means spouse and children only.** In India, parents are the largest claims category by relationship, about 40% of claims in Plum's data. Decide whether parents are covered, and who pays that share of the premium, before the policy is placed.
4. **Our staff in India can stay on ZUS under an agreement.** The India–Poland social security agreement was signed on 25 November 2024 but is not yet in force. Polish nationals on Indian payroll join EPF from day one on full salary, with no ₹15,000 ceiling, and can generally withdraw only at 58 or on permanent incapacity.
5. **Retirement savings beyond the state scheme are optional, as with PPK.** EPF is statutory at establishments with 20+ employees: 12% of basic plus DA from the employer and 12% from the employee. Most MNC subsidiaries contribute on full basic rather than the ₹15,000 statutory wage ceiling.
6. **A sports card and a medical package make a competitive offer.** Candidates hired at ₹8 LPA and above expect Group Health Insurance, with Group Personal Accident and Group Term Life as the usual add-ons. GTL at 3 to 5 times CTC is common for white-collar staff. Wellness perks come after these, not instead of them.
7. **Retirement payments only matter at retirement.** Gratuity is statutory at establishments with 10+ employees and owed on any exit after five years (one year for fixed-term staff): 15 days' last drawn salary per year, capped at ₹20 lakh. Provision it from the first payroll.
8. **Our Polish pay structure can be copied as it is.** Since 21 November 2025, if allowances excluded from 'wages' exceed 50% of total remuneration, the excess is added back for EPF, gratuity and other statutory calculations. Check the structure before issuing Indian offer letters.

## Poland vs India, benefit by benefit

| Benefit | Poland | India |
| --- | --- | --- |
| Statutory health cover | NFZ public health care for insured employees. | ESI for employees earning up to ₹21,000 a month. Nothing above that line. |
| Health contribution | 9% of pay, deducted from the employee. | 3.25% employer and 0.75% employee into ESI, below the ceiling only. |
| Private cover | Medical package focused on fast access to doctors and specialists. | GHI focused on hospitalisation; outpatient care only with an OPD add-on. |
| Pension | ZUS pension at 19.52% of pay, split equally, up to PLN 282,600 of annual pay in 2026. | EPF and EPS at 12% employer plus 12% employee on basic plus DA. |
| Disability | ZUS disability insurance at 8%: 6.5% employer, 1.5% employee. | No separate contribution. EDLI pays life cover up to ₹7 lakh; GPA covers accidental disability. |
| Workplace savings | PPK: 1.5% employer, 2% employee, plus state top-ups. | No separate scheme; EPF fills this role. NPS is optional. |
| Accident insurance | ZUS accident contribution of 0.67% to 3.33%, employer-paid, set by risk. | Employees' Compensation Act for employees not in ESI, insured by the employer; GPA voluntary. |
| Retirement lump sum | Statutory retirement severance under the Labour Code. | Gratuity after five years: 15 days' last drawn salary per year, capped at ₹20 lakh. |
| Annual leave | 20 days, or 26 days after 10 years' service including education. | Earned leave typically 12 to 18 days a year, plus casual and sick leave. |
| Maternity | Maternity allowance paid by ZUS. | Employer pays 26 weeks of full pay (12 from the third child). No statutory paternity leave under central law. |
| Social fund | ZFŚS required at 50+ full-time-equivalent employees. | No equivalent; a crèche is required at 50+ employees. |
| Social security agreement | Signed with India on 25 November 2024; not yet in force. | Polish assignees join EPF from day one on full salary, with no ₹15,000 ceiling. |

## Staff seconded from Poland

Posted staff often keep a Polish medical package or an international health plan, but an India-admitted GHI is still worth adding: it gives cashless admission at network hospitals without an advance deposit. No India–Poland social security agreement is in force yet, so a Polish employee on Indian payroll is an International Worker: EPF from day one on full salary, with withdrawal generally only at 58 or on permanent incapacity. Build that into the assignment cost.

## Where Polish companies set up in India

- **Pune, Maharashtra.** SECO/WARWICK's heat-treatment business at Chakan and Billennium's IT office in Baner. Maharashtra's Shops and Establishments rules set leave for office staff.
- **Mumbai Metropolitan Region, Maharashtra.** SECO/WARWICK Allied in Navi Mumbai; Poland also keeps its Consulate General in Mumbai. Office and plant staff fall under different Maharashtra leave rules.
- **Chhatrapati Sambhajinagar (Aurangabad), Maharashtra.** Canpack's beverage can plant. ESI covers workers earning up to ₹21,000 a month; above that, the Employees' Compensation Act and voluntary GPA apply.
- **Nuh, Haryana.** Canpack's second Indian can plant, in the industrial belt south of Gurugram. Haryana's own Shops and Establishments and factory rules apply.

Polish companies with operations in India include Canpack, TZMO (Bella), SECO/WARWICK, Billennium.

## Benchmarks: what MNCs and GCCs offer in India

From [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits), Plum's report on 15,312 benefit plans, 5,20,100 claims and 74,543 checkups from Plum's FY26 book.

- **1.6×** MNC and GCC benefits spend per employee in India, against a funded Indian startup (nearly 3× a local Indian business). ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **43%** of MNCs and GCCs in India are Holistic Leaders: deep insurance plus real breadth of healthcare beside it. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **₹7,50,000** median MNC/GCC sum insured, covering parents or in-laws, with ₹1,00,000 maternity cover and no copays or sub-limits. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **~2%** of payroll buys India's top-quartile plan, against roughly 15% in the US, 10–25% across Europe and 8–15% across APAC. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage))

## Further reading on plumhq.com

- [How MNCs structure health insurance for Indian subsidiaries](https://www.plumhq.com/blog/mnc-health-insurance-india-subsidiary-structure): Global programmes, local policies and who signs what.
- [Do you need to match headquarters' benefits in India?](https://www.plumhq.com/blog/gcc-match-headquarters-benefit-standards-india): Where to mirror the parent plan, and where India needs its own design.
- [Insurance for expatriate employees in India](https://www.plumhq.com/blog/insurance-coverage-expatriate-employees-gcc-india): Covering seconded staff alongside the local plan.
- [Group insurance vs ESI: a guide for employers](https://www.plumhq.com/blog/group-insurance-vs-esi-employers-guide): Who must be in ESI, and where group health insurance takes over.
- [How to calculate gratuity in India](https://www.plumhq.com/blog/how-to-calculate-gratuity): Formulas, worked examples and a free calculator.
- [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits): Benchmarks from 4,500+ Indian employee health plans.

Sources: Biznes.gov.pl (Government of Poland), ZUS contribution rates for employees; ZUS, annual limit on the pension and disability contribution base for 2026; Act of 4 October 2018 on Employee Capital Plans (PPK); Labour Code (Kodeks pracy), Articles 154–155 on annual leave; Act of 4 March 1994 on the Company Social Benefits Fund (ZFŚS); Embassy of India, Warsaw: press release on the India–Poland Social Security Agreement (25 November 2024) and bilateral brief (April 2025); Ministry of External Affairs, India: social security agreements (Poland: signed, yet to enter into force); India–Poland Double Taxation Avoidance Agreement (1989) and Protocol (signed 2013, in force 2014); Code on Social Security 2020 and Code on Wages 2019, in force 21 November 2025.