Higher Minimum Salary in 2024
Each year, the Ministry of Family, Labour and Social Policy presents its proposal with regard to changing the statutory minimum salary. Minimum salary, which applies both to people working full time and those employed on the basis of contracts of mandate who calculate wages by hour, is stipulated in provisions of a special resolution of the Council of Ministers which is adopted every year.
Minister Elżbieta Rafalska has recently announced her office’s suggestion with regard to the minimum salary in Poland: 2460 PLN gross per month or 16 PLN per hour. At this point, it is just a proposal. Labour unions and entrepreneurs’ representatives and experts from other ministries now have a chance to voice their opinions on the idea.
History of Minimum Salary in Poland:
In 2019, the minimum salary was set at 2250 PLN per month and 14.70 PLN per hour. Officials admit that the Ministry’s proposal for next year constitutes a considerable hike. Minister Rafalska argues that the long-term intention of the government is to establish a minimum salary equal to 50 per cent of the average national remuneration.
2460 PLN is a compromise between the proposals of Polish labour unions and entrepreneurs. The unions would like to see an even higher increase in the amount in question. Their suggestion is 2520 PLN gross per month. Business owners, understandably, are not fond of such changes.
Their proposal is the minimum monthly salary in the amount of 2358 PLN. According to them, the amount the Ministry put forward is unreasonable and out of touch with the growth of productivity. This will have an impact on the competitiveness of businesses, they say.
The change will affect 1.5 million workers across Poland. However, the minimum salary amount has an effect not only on employers and employees. A large portion of everyone’s salary constitutes social insurance contributions, calculated as a percentage of gross remuneration. Higher pay means higher payments for Social Insurance Institutions, a state body administering e.g. the government pension scheme.
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