New Minimum Wage. Some Employees Will Be Happy
The minimum wage from 2026 is to be 55% of the forecasted average wage. The draft law on this matter was published a few days ago. In 2023, this ratio was 50.3%. Forecasts for 2024 indicate that the minimum wage will be PLN 4,300, which is 53.7% of the forecasted average wage (PLN 8,007 gross).
The Ministry of Labor sent a draft law on minimum wage for consultation on Monday. The planned solutions will appeal to employees, but not necessarily to employers. The idea of raising penalties for violating labor law was also formulated: they have been at a constant level for 17 years.
Minimum wage: 55 percent of the forecast average wage
On Monday, a draft bill on the minimum wage was published on the Government Legislation Centre website. It aims to implement the EU directive on adequate minimum wages in the European Union.
According to its provisions, Member States are required to carry out an “assessment of the adequacy of minimum wages”. What does this mean? They must choose one or more “indicative reference values”, for example 60% of the median wage or 50% of the average wage (at international or national level).
The regulation proposed by the Ministry of Family, Labor and Social Policy is largely a repetition of the provisions of the Minimum Wage Act that are already in force. So what should it look like? For the annual assessment of the minimum wage, an indicative reference value of 55 percent of the forecasted average wage in the national economy, adopted for the development of the draft budget act, will be established.
In its justification, the ministry argues that, apart from the fact that it is an adjustment of Polish law to EU regulations, such a provision is also intended to make the minimum wage in Poland more fair and based on a transparent scheme.
Importantly, the minimum wage (currently PLN 4,300 gross) is to be achieved by the basic salary, excluding, for example, bonuses and bonuses. The project maintains the guarantee of increasing the minimum wage by at least the inflation rate. In recent years, the highest single increase in the minimum wage occurred in 2020 (+ 15.6%).
“Rzeczpospolita” points out that the ministry also wants to increase penalties for violating labor law. Fines are to range from PLN 1,500 to PLN 45,000 – and if this happens, it will be the first increase in 17 years.