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Poland: Record increase to the minimum wage

The Polish Association of Employers (Pracodawcy RP) is very critical about the increase in the minimum remuneration for work. They claim that ‘irrational’ and groundless rapid growth in the minimum wage might be dangerous for the Polish economy, which could quickly lead to inflation, and goes against prevailing theories concerning a free market economy. The Association emphasises that no economic category in Poland is growing at such a pace as the minimum wage. At the same time, they agree that the salaries in Poland should be increased, but in their view, the increase should be connected to increased added value of Polish products and services, which is the result of an innovative economy.

On the other hand, Polish employees have been anticipating an increase to the minimum wage for quite some time now, especially since it is estimated that c.a. 14% of workers in Poland earn the minimal salary (in 2019 it is c.a. EUR 525 gross and c.a. EUR 390 net).

Government support for higher wages remains strong. Policymakers have already announced that salaries will continue to grow in the coming years; in 2021 the minimum remuneration will be PLN 3,000 gross and in 2023 it will be PLN 4,000 gross.