What hurts entrepreneurs the most? No, not taxes

Although from the beginning of 2022 to mid-2023 energy prices bothered entrepreneurs more than employee costs, this burden has clearly decreased this year. In the opinion of entrepreneurs, from mid-2023 to the present, employee costs make it more difficult than energy prices to run a business – we read in the “Tygodnik Polskiego Instytut Ekonomiczny”.

Employers complain about the minimum wage being raised every year (and sometimes even every 6 months, as was the case this and last year). How much will it be in 2025? It is to be PLN 4,626 gross – 7.6% will be transferred to the accounts of employees. more than currently. Currently, the lowest salary is PLN 4,300. There is also a minimum hourly rate for people performing duties based on a mandate contract: from January 1, it will be PLN 30.20 gross, i.e. PLN 2.10 more than currently (up by 7.5%). “Such significant increases employee costs will affect the financial situation of every company,” says the Polish Chamber of Commerce (PIH) in a statement from the end of August.

Minimum wage in 2025

“We appeal not to make decisions that will harm small and medium-sized entrepreneurs and, consequently, harm the Polish economy,” we read further. “Raising the minimum wage will primarily make the Polish economy unattractive to investors – due to very high labor costs. Moreover, this change will provide a strong pro-inflationary impulse.

The president of PIH, Maciej Ptaszyński, quoted in the announcement, pointed out that “when it comes to micro and SMEs, especially in trade, this will be devastating for thousands of retail establishments that are currently operating at the break-even point.” He added that “salaries are the largest item cost in every enterprise. In the case of trade, which is overburdened by 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 lead to the liquidation of thousands of stores, which will only strengthen the position of foreign discount stores “Railways, it should be expected that large chains will pass on their costs to Polish producers and consumers.”