They warn that companies will not be able to handle it. Will they be able to convince the government to change its plans?

The minimum wage from 1 January 2025 is to be PLN 4,626 gross – 7.6 percent more than currently will be paid into the accounts of employees. Currently, the minimum wage is PLN 4,300. There is also a minimum hourly rate for people performing duties based on a contract for services: from 1 January, it will be PLN 30.20 gross, which is PLN 2.10 more than currently (up 7.5 percent). “Such significant increases in employee costs will affect the financial situation of every company,” the Polish Chamber of Commerce (PIH) claims in a statement on Thursday.

Minimum wage in 2025

“We appeal not to make decisions that will be detrimental to small and medium-sized enterprises, and consequently to the detriment of the Polish economy,” we read further. “Raising the minimum wage will, above all, make the Polish economy unattractive to investors – due to very high labor costs. In addition, this change will provide a strong pro-inflationary impulse.”

Maciej Ptaszyński, president of PIH, quoted in the press release, pointed out that “when it comes to micro and SMEs, especially in trade, this will be devastating for thousands of retail outlets that are already operating on the verge of profitability”. He added that “wages are the largest cost item in every enterprise. In the case of trade, overloaded with the competitive fight with discount stores and numerous costs related to running a business (such as the implementation of the deposit system), this will undoubtedly be a factor leading to the liquidation of thousands of stores, which will ultimately only strengthen the position of foreign discount stores. In turn, it should be expected that large chains will pass on the incurred costs to Polish producers and consumers”.

The Chamber stressed in its statement that it was seeking a meeting with government representatives on this matter.

The minimum wage must be raised

The Minimum Wage Act guarantees a minimum wage in Poland: an employee employed full-time on a monthly basis cannot receive a salary less than the minimum wage set in a given year.

The initial proposal for the national minimum wage is established based on the forecasted price growth for the following year. The increase in the minimum wage may be higher than the minimum adopted in the act.

At the same time, if the forecasted consumer price index for the next year is at least 105 percent (i.e. if the forecasted inflation is at least 5 percent) – two dates are set for changing the minimum wage and the minimum hourly rate: from January 1 and July 1. We saw a double increase in 2023 and 2024. Next year, the minimum wage will increase only once.

Minimum wage at 55 percent of the forecasted average wage

This is not the end of possible changes in relation to the minimum wage. On Monday, the Ministry of Labour sent a draft act on the minimum wage for consultation. The planned solutions will appeal to employees, but not necessarily to employers. The project 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 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).