The minimum wage in Poland in 2023

The minimum wage in Poland in 2023
Kalina Warda-Nypel

Kalina Warda-Nypel

Senior Associate / Attorney-at-law

The minimum wage in Poland in 2023 increased at the beginning of January 2023. But, this will not be the last increase in the current year. As of the 1st of July 2023, the minimum wage in Poland in 2023 will increase again. What is the current minimum salary in Poland? By how much will it increase from the 1st of July 2023? How much will employees benefit and how much will the costs for employers increase? We invite you to read the article on this topic.

Minimum wage in Poland in 2023

Minimum wage in Poland in 2023 – basic information

The minimum wage in Poland in 2023 is the established lowest remuneration that an employer must pay to an employee. This concerns people hired under an employment contract. A salary below the minimum rate is a violation of employees’ rights. The provisions of the labour code regulate this issue. The act states that a person who unjustifiably reduces the remuneration for work or other benefits due to an employee is subject to a fine. It ranges from 1000 to 30,000 PLN.

The Social Dialogue Council decides about the amount of the minimum salary in Poland. If it doesn’t agree on its amount within the statutory deadline, the Council of Ministers makes the decision by way of regulation. The government must announce the minimum salary by the 15th of September of each year.

Establishing if remuneration is at least equal to the minimum salary requires certain calculations. The salary components and other benefits due to an employee are taken into account. All benefits resulting from the employment relationship must be considered.

The components of salary include:

  • basic remuneration,
  • bonuses and statutory and discretionary awards,
  • allowances, for example for specific working conditions or managerial functions,
  • remuneration for holiday leave or training leave,
  • remuneration for the period of incapacity for work due to illness,
  • remuneration for the period of downtime not caused by the employee

However, the following components are not taken into account:

  • service anniversary award,
  • severance payment due to an employee in connection with old-age pension or disability pension,
  • remuneration for overtime work,
  • bonus remuneration for night work,
  • seniority allowance

Minimum wage in Poland in 2023 – an increase from the 1st of January

The minimum salary plays a significant role in reducing income inequality. Moreover, it protects employees from working below established rates. According to the government’s decision, at the beginning of 2023, the minimum salary in Poland increased to 3490 PLN gross. This is 480.00 PLN more than in the previous year.

To calculate the net value of the minimum salary, certain contributions must be subtracted from the gross amount. Among them, there are social security contributions, health insurance contributions, and advance payments for PIT. The minimum net salary also depends on other factors, e.g. working outside the place of residence.

ContributionsMinimum salary for the period from 1 January to the end of June 2023 (3 490 PLN gross)
Old-age pension340,62 PLN
Disability pension52,35 PLN
Sickness insurance85,51 PLN
Health insurance271,04 PLN
Advance payment for PIT31,00 PLN
minimum net salary2709,48 PLN
Minimum salary in Poland from 1.01.-30.06.2023

Minimum wage in Poland in 2023 – a further increase from the 1st of July

This is not the end of changes in the minimum wage in Poland in 2023. As of the1st of July 2023, the minimum salary will increase to 3 600 PLN gross. This means an increase by 590.00 PLN compared to the previous year. What will be the net value of the minimum salary as of the 1st of July 2023?

ContributionMinimum salary for the period from the 1st of July 2023 (3 600,00 PLN gross)
Old-age pension351,36 PLN
Disability pension54,00 PLN
Sickness insurance88,20 PLN
Health insurance279,58 PLN
Advance payment for PIT43,00 PLN
Minimum net salary2783,86 PLN
Minimum wage in Poland in 2023 from 1.07.2023

Minimum wage in Poland in 2023 – employer’s costs

The increase in the minimum salary in Poland in 2023 is a good news for employees. However, for employers it means an increase in their costs. Gross salaries are not the only cost borne by employers. They are also responsible for social security contributions, contributions to the Labor Fund, and the Guaranteed Employment Benefits Fund.

Employer’s costsfrom 1st January 2023Od 1st July 2023
Gross remuneration3.490,00 PLN3.600,00 PLN
Employer’s social security contributions625,75 PLN645,48 PLN
Old-age pension340,62 PLN351,36 PLN
Disability pension226,85 PLN234,00 PLN
Accident insurance contribution58,28 PLN60,12 PLN
Contribution to the Labor Fund85,51 PLN88,20 PLN
Contribution to the Guaranteed Employee Benefits Fund3,49 PLN3,60 PLN
Total costs4204,75 PLN4337,28 PLN
Employer’s costs 2023

Do you run a business and wonder what costs you will incur?

If you are wondering what final costs you have to incur due to increases in minimum salary – we will help you. Our experts will calculate for you the estimate costs while taking into account the specifics of your company. We will also focus on current changes in the law in order to provide you with a reliable answers. We can advise you on the solutions you can implement to save money. Contact us.

Minimum wage in Poland in 2023 – part-time work

As a rule, the minimum salary in Poland concerns full-time employees. In the case of part-time work, the salary is determined proportionally. It is based on the number of hours worked in a given month.

Work timeFull time3/4 FTE*1/2 FTE1/3 FTE1/4 FTE
From the 1st of January 2023 (gross)3490,00 PLN2617,50 PLN1745,00 PLN1163,33 PLN872,50 PLN
From the 1st of July 2023 (gross)3600,00 PLN2700,00 PLN1800,00 PLN1200,00 PLN900,00 PLN
The minimum salary in relation to the FTE

*FTE = Full Time Equivalent

Minimum wage in Poland in 2023 – a minimum hourly rate

The regulations concerning minimum wage in Poland do not concern civil law agreements. Since 2017, both individuals employed under a contract of mandate and those providing services as part of their own business activities are subject to the minimum hourly rate. The hourly rate, like the minimum salary in Poland, is not a fixed amount and changes every year. The minimum hourly rate from the 1st of January 2023 is 22.80 PLN gross. From the 1st of July 2023, it will increase further to 23.50 PLN gross.

What are the costs of hiring an employee in Poland? Find out from our article.

Minimum wage in Poland in 2023. Summary

The double increase of the minimum wage in Poland in 2023 is the result of high inflation. According to regulations, if the projected inflation rate for the following year is at least 5%, then there are two dates set for changing the amount of the national minimum salary and the minimum hourly rate. The projected rate for 2023 is 10%. The increase in the minimum salary in 2023 will result in an increase by 590.00 PLN gross compared to the previous year. In turn, the hourly rate will increase by 3.80 PLN gross, up to 23.50 PLN gross.

If you find the above article interesting and want to learn more about the topic, we invite you to cooperate with us. Our legal experts in Łódź and Warsaw are at your disposal. Contact us today and let us help you.

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