12 Sep 2019
Poland’s minimum wage will be increased from PLN2250 (€520) per month in 2019 to PLN4000 (€930) in 2024, it has been revealed, with the process already having begun.
As ING reports, this news comes as the government chose to alter its initial plan for the 2020 minimum wage, allowing it to increase from PLN2450 to PLN2600. Therefore, the minimum wage would soar by 15% in 2020 and 2021, as well as by 10% in the following three years.
This rise will be the strongest seen for the minimum salary since 2008-09, when it grew by 20% and 13%, although from a significantly lower base – from 35% of average wages to 41%.
With the proposed pace of growth, it is expected that the minimum wage would increase from 46% of the average wage in 2018 to 57% in 2024. This is far more than the majority of countries in the Organisation for Economic Co-operation and Development.
ING also addressed the idea that a high increase in wages could result in lower skilled workers being laid off, by pointing out that the Polish job market is currently doing very well and the unemployment level remains below 4%, as the Labour Force Survey revealed – while businesses continue to seek workers in great quantity. This suggests that unemployment levels are unlikely to be affected negatively by a wage increase, unless a deep recession forms part of the mix.