A new legislative proposal in the Polish Sejm aims to reform the Labor Code and minimum wage laws, introducing automatic interest for late pay and harsher penalties for systemic wage theft.
Automatic Interest on Late Payments
Starting January 1, 2027, employees will automatically receive interest for late wage payments. This entitlement will trigger without the need for an employee to file a formal request or prove any financial damage.
Employers will be required to calculate and pay this interest alongside the overdue salary, effective from the day immediately following the missed payment deadline.
Increased Penalties for Wage Arrears
Under the proposed amendments, failing to pay wages for at least three months will be classified as a specific offense. Employers or individuals acting on their behalf face fines ranging from 5,000 PLN to 60,000 PLN or restrictions on liberty.
The legislative project seeks to address the social harm caused by prolonged non-payment, distinguishing it from isolated or minor administrative delays.
Stricter Fines for Labor Law Violations
The proposed legislation doubles the fine range for violating fundamental labor rights, such as failing to grant vacation leave, issuing employment certificates late, or arbitrarily lowering wages. Starting in 2027, these fines will increase from a range of 1,000–30,000 PLN to 2,000–60,000 PLN.
Similarly, penalties for failing to adhere to health and safety regulations are set to increase to the same 2,000–60,000 PLN threshold.
Minimum Wage Calculation Reform
The reform introduces a significant change in how the minimum wage is calculated. Premiums, awards, functional allowances, and other performance bonuses will no longer be included when determining if an employee is receiving the statutory minimum.
This change intends to prevent the practice of using variable bonuses to artificially top up base salaries to meet the national minimum wage requirement.
Legislative Timeline and Procedures
The Sejm is scheduled to hold the first reading of the bill (print no. 1811) on May 27. The project maintains the annual negotiation process within the Social Dialogue Council and preserves the possibility of two annual minimum wage increases if projected inflation exceeds 105 percent.