Companies don’t want to give raises. It’s a “problem” for them

Companies don't want to give raises. It's a "problem" for them

In July 2024, the minimum wage will increase again, which raises objections from entrepreneurs. They call for the abolition of twice-a-year increases, considering them unnecessary and troublesome.

In July 2024, the minimum wage will increase for the second time this year, which is causing concern among entrepreneurs. The Northern Chamber of Commerce in Szczecin, represented by president Hanna Mojsiuk, emphasizes that two increases in the minimum wage in one year are ineffective and generate unnecessary problems. The change in July, although symbolic, amounting to only PLN 56 gross, requires annexing contracts, which is time-consuming and troublesome, especially in the case of civil law contracts.

“Two minimum wage increases in a year are two opportunities for employees to raise the issue of salary indexation. We are receiving signals that the July change will not only apply to the lowest-level salary, but other employees also expect a change in the salary scale. The summer season is a time of slowdown in many sectors of the economy. This is not a good time to discuss salary increases,” says Hanna Mojsiuk.

Minimum wage in Poland

In January 2024, there was a record increase in the minimum wage from PLN 3,600 to PLN 4,242 gross. According to entrepreneurs, the July indexation to PLN 4,300 gross is unnecessary. They believe that one larger increase at the beginning of the year would be more effective than splitting it into two parts.

The Northern Chamber of Commerce has previously appealed for the abandonment of the idea of ​​raising the minimum wage twice a year. Entrepreneurs argue that such a practice causes complications in settlements and raises expectations of increases among other employees as well, which is particularly problematic during periods of economic slowdown, such as the summer season.

Labor market experts, including Anna Sudolska, agree with entrepreneurs that frequent updating of salaries is no longer necessary and only constitutes an additional burden for companies. Consultations are currently underway regarding the new pay scale for 2025, where the proposed minimum wage is PLN 4,626 gross.

Appeal to the ministry

Entrepreneurs are appealing to the Ministry of Family, Labor and Social Policy to clearly declare that such a situation will not repeat itself in the future. They want to avoid the chaos and complications associated with frequent increases in the minimum wage, which generate additional costs and stress for both employers and employees.

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