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Prime Minister: Starting from 2020, Poland’s minimum wage will rise






The minimum wage in Poland will be raised from the current PLN 2,250 (EUR 519) to PLN 2,600 (EUR 599) from 2020, up by 15.6%, Prime Minister Mateusz Morawiecki said after a government meeting Last September 10.

At its sitting on Tuesday, the government debated a draft regulation on the minimum monthly wage and minimum hourly rate. The latter will be increased to PLN 17 (EUR 3.39) from the current PLN 14.70 (EUR 3.92), or by 15.6%, Family and Labour Minister Bozena Borys-Szopa said.

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The rise of the minimum wage in perspective

The minimum wage is set to grow from PLN2250 (€520) per month in 2019 to PLN4000 (€930) in 2024. The first step has already been taken. The government has decided to amend its own decision on the 2020 minimum wage to raise it from PLN2450 to PLN2600. This means that the minimum wage is set to grow by about 15% in 2020 and 2021 and by 10% for the following three years. This is the strongest growth of the minimum salary since 2008-09 when it grew by 20% and 13%, but from a much lower base (from 35% of average wages to 41%). With the pace of growth proposed now the minimum wage should likely rise from 46% of the average wage in 2018 to 57% in 2024 – significantly more than in most countries in the Organisation for Economic Co-operation and Development.

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In principle, the change in the minimum wage does not require making any amendments to existing agreements. Having said that, if agreements contain provisions that refer to the amount of the minimum wage, it would be advisable to update them. Best practice is not to specifically state the actual amount of the minimum wage in a given calendar year, but just to use the term “minimum wage”.

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Related News
Poland: Weaker wage growth in September



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