What is the minimum wage in Poland in 2024? For employees and employers alike in Poland, understanding the scale of the minimum wage increase in 2024 is crucial.
This article provides a thorough examination of the changes to the minimum wage, decoding the change of particular elements of the salary.
Whether you’re a seasoned professional or entering the job market, our analysis offers a comprehensive understanding of Poland’s minimum salary structure and its associated benefits, helping you understand better the area of compensation in Poland.
The minimum wage in Poland in 2024 table of contents
- Minimum wage in Poland in 2024 – key facts
- The minimum wage in Poland in 2024. What is the minimum salary in Poland?
- The minimum wage in Poland in 2024. Minimum salary in Poland – related benefits
- What determines the amount of the minimum salary in Poland?
- Principles of determining the minimum salary in Poland
- What will be the value minimum wage in Poland in 2024?
- Settlement of the minimum wage in Poland in 2024
- Consequences of changes in the minimum wage in Poland in 2024
- The minimum wage in Poland in 2024 – summary
- FAQs on minimum wage in Poland in 2024
Minimum wage in Poland in 2024 – key facts
|Definition of Minimum Salary||Lowest permissible monthly remuneration, statutorily defined. Influences stability of employment and non-compliance is a violation of rights.|
|Minimum Salary in 2024||– From January 1: 4242 PLN gross.|
– From July 1: 4300 PLN gross.
– Average throughout 2024: 4271 PLN.
|Related Benefits||Basis for determining other employee benefits such as supplements, compensation for downtime, and severance payments.|
|Minimum Hourly Rate in 2024||– From January 1: 27.70 PLN.|
– From July 1: 28.10 PLN.
|Determining Factors||Based on projected inflation, economic growth, and half of the national average.|
|Settlement of Minimum Wage||– From January 1: 3191.98 PLN net.|
– From July 1: 3231.53 PLN net.
|Social Insurance Contributions||Total contributions in the first half of 2024 amount to 401.90 PLN, covering various insurance types.|
The minimum wage in Poland in 2024. What is the minimum salary in Poland?
The minimum salary is a statutorily defined, lowest permissible amount of monthly remuneration for work. It is indicated in the form of a rate or minimum earnings for work in the applicable time frame. The obligation to determine it arises from the Constitution of the Republic of Poland. The Act of 10 October 2002 on the minimum salary defines the rules for its establishing.
A clearly defined lower limit of a full-time worker’s salary influences the stability of employment. Therefore, a salary below the statutory value is a violation of employees’ rights.
The minimum wage in Poland in 2024. Minimum salary in Poland – related benefits
The minimum salary serves as the basis for determining other benefits for employees. This refers for example to:
- supplement to the salary in the amount of 20% of the hourly rate resulting from the minimum salary,
- compensation for downtime (cannot be lower than the minimum salary),
- the amount of severance payment for group layoffs. (It cannot exceed 15 times the minimum salary).
The value of the minimum salary is the basis for determining the value of social insurance contributions paid by new entrepreneurs. Preferential rates applicable in the first 24 months are calculated from the basis equal to 30% of the minimum salary.
What determines the amount of the minimum salary in Poland?
The initial amount of the minimum salary is determined based on data concerning the projected inflation for the next year. If the minimum salary is lower than half of the national average, it is also based on the data determining 2/3 of the actual economic growth. The increase in the minimum salary can be higher than the statutory minimum.
Principles of determining the minimum salary in Poland
The value of the minimum salary is subject to annual negotiations within the framework of the Social Dialogue Council (SDC). It is an organization that brings together representatives of employers, employees, and authorities. The Council of Ministers presents the SDC with a proposal for the amount of the minimum salary for the next year by 15 June of each year. It also suggests the implementation date of the proposed change. Moreover, it presents additional relevant data. They concern the forecasted real GDP growth rate and average salary in the first quarter of the year in which negotiations take place. The Council also provides information on:
- the price index in the previous year,
- price index and average salary forecasted for the next year,
- household expenditures in the previous year
- indicator of the share of income from contract work and the average number of dependents of a contract worker in the previous year,
- the amount of average monthly salary in the previous year by type of business activity,
- the living standard of different social groups,
- the economic conditions of the country, including the condition of the state budget, the requirements of economic development, the level of labor productivity, and the need to maintain a high level of employment.
After receiving the proposal for the minimum salary and the complete set of information from the Council of Ministers, the SDC agrees on the minimum value. The decision is issued within 30 days from the day of receiving all the data. The final amount is published in the Polish Monitor, by way of an announcement of the Prime Minister’s decision. It must be done by the 15th of September each year.
If the SDC does not agree on the amount of the minimum salary for the following year within the above-mentioned period, the Council of Ministers establishes it through regulation. This must be done also by September 15th of each year, along with the proposed date of implementation.
According to the legislator’s assumption, if the forecasted price index for the next year, i.e. the average annual price index for consumer goods and services as a whole adopted for the preparation of the draft budget act, is at least 105%, then two dates for changing the minimum salary and the minimum hourly rate are indicated:
- the 1st of January
- the 1st of July
What will be the value minimum wage in Poland in 2024?
The current draft regulation of the Council of Ministers on the minimum salary assumes that the average minimum in 2024 should not be lower than the statutory minimum, i.e. 4,270.60 PLN gross. It provides for two dates for the increase in the minimum salary:
- from 1 January 2024 – 4242 PLN
- from 1 July 2024 – 4300 PLN.
The thresholds set in this way will result in the average minimum salary in 2024 amounting to 4271 PLN. This amount will increase in relation to 2023 by 642 PLN gross in January 2024. Then, by 700 PLN gross in July 2024.
Setting the minimum salary in 2024 is linked with the need to determine the minimum hourly rate for work. According to the proposed regulation of the Council of Ministers, it will be:
- 27,70 PLN from 1 January 2024
- 28,10 PLN from 1 July 2024
Settlement of the minimum wage in Poland in 2024
The planned salary increase means that from 1 January 2024, the monthly salary of an employee will be no less than 3191.98 PLN net. From 1 July 2024, it will increase to 3231.53 PLN net.
The increase in the minimum salary will affect the amount of contributions to the Social Insurance Institution (ZUS). In the first half of 2024, they will amount to a total of 401.90 PLN. This value includes contributions for:
- pension 248.40 PLN,
- disability pension 101.08 PLN,
- accident insurance 21.25 PLN,
- sickness insurance 31.17 PLN,
Consequences of changes in the minimum wage in Poland in 2024
The planned salary increase will certainly lead to an increase in:
- financial security for workers,
- state care for workers,
Among the less positive aspects, one can highlight, for example:
- possible reduction in the number of employees hired by micro-entrepreneurs,
- increased costs for employers,
- likelihood of job automation for savings,
- the risk of a decrease in the quality of work among experienced employees due to the flattening of remuneration resulting from the increase in the minimum salary,
- difficulties in the smooth functioning of many industries due to high operating costs, e.g., in the construction industry.
The minimum wage in Poland in 2024 – summary
Determining the amount of the minimum salary is a crucial element of a properly functioning state. This is why, the procedure takes place annually and analyses various factors.
If you are interested in the above article and want to know more about the subject, we invite you to cooperate with us. Our experts from law firm in Łódź and Warsaw are at your disposal. Contact us today and let us help you!
FAQs on minimum wage in Poland in 2024
What will the minimum wage in Poland be in 2024?
The minimum wage is projected to be 4,242 PLN gross from January 1st and 4,300 PLN gross from July 1st, 2024.
How is the minimum wage in Poland in 2024 determined?
The minimum wage is set annually through negotiations within the Social Dialogue Council, which considers factors like projected inflation, economic growth, and the country’s economic conditions.
Are there any related benefits tied to the minimum wage in Poland in 2024?
Yes, the minimum wage determines other employee benefits, such as salary supplements, compensation for downtime, and severance payments in group layoffs.
Will the increase in the minimum wage affect the Social Insurance Institution (ZUS) contributions?
Yes, the increase in the minimum wage will result in higher ZUS contributions. For the first half of 2024, the total contributions will amount to 401.90 PLN.
What is the minimum hourly rate in Poland for 2024?
The minimum hourly rate will be 27.70 PLN from January 1st and 28.10 PLN from July 1st, 2024.
How does the increase in the minimum wage in Poland in 2024 impact employees’ net salary?
The net salary will be at least 3,191.98 PLN from January and 3,231.53 PLN from July 2024.
What are the consequences for employers with the change in the minimum wage in Poland in 2024?
Employers may face increased operational costs and may need to adjust their employment strategies, which could include workforce reduction or automation.
Can the minimum wage in Poland increase more than the projected figures?
Yes, if the economic conditions allow, the increase can be higher than the statutory minimum based on the country’s average salary and other economic indicators.
What happens if an employer doesn’t comply with the minimum wage regulations in Poland?
Non-compliance can result in legal penalties, including fines, and is considered a violation of employees’ rights.
Why is the minimum wage adjusted every year in Poland?
The annual adjustment is aimed at maintaining the living standards of employees, reflecting the cost of living, and promoting fair labor practices.