They don’t want people to earn more. They appeal to the prime minister
The Polish Chamber of Commerce (PIH) has sent an open letter to Prime Minister Donald Tusk, in which it appeals not to increase the minimum wage from 1 January 2025. According to PIH, the planned increase to PLN 4,666 poses a serious threat to small and medium-sized enterprises (SMEs), which may not be able to bear the additional costs.
News of an increase in the minimum wage is usually received positively by most of society. Over the past few years, the so-called “lowest national wage” has increased significantly. In 2015, it was PLN 1,750 gross. In today’s reality, this is a ridiculously low amount. Currently, from July 1, 2024, the minimum wage is PLN 4,300 gross.
4666 PLN? It’s too much for them
PIH emphasizes that the increase in the minimum wage to over PLN 4,600 gross will cause a significant financial burden for small and medium-sized enterprises, which already have a big problem coping with labor costs. According to the assessment of the Polish Chamber of Commerce, another increase in the minimum wage will mean additional costs of PLN 11.8 billion, while for large companies
“only” PLN 3.15 billion.
As a result, many small businesses, especially in the retail sector, may be forced to close down, sometimes for many years. “It should be remembered that wages are the largest cost item in any business. In the case of retail, burdened with numerous costs related to running a business (such as implementing a deposit system), this will undoubtedly be a factor leading to the liquidation of thousands of stores,” the chamber informs.
A threat to the entire economy, plus inflation
The Polish Chamber of Commerce also warns that the increase in the minimum wage could harm the Polish economy by scaring away investors due to high labor costs. According to PIH, the increase will also trigger a pro-inflationary impulse, which will further worsen the economic situation.
PIH brings together over 30,000 Polish shops, wholesalers and service companies that appeal for a well-thought-out wage policy in the interests of market stability.
Bad time for companies
In 2023 alone, as many as 220,000 companies declared bankruptcy in Poland. 10,000 more than in 2022. It is easy to calculate that an average of 18,000 businesses closed their operations each month. Some of them moved to the so-called grey zone and continue to operate, but unofficially, without incurring labor costs that exceed their capabilities.
