Poland’s government proposes tying minimum wage to 55% of national average with automatic annual inflation adjustments.
Proposed Minimum Wage Mechanism
On February 19, Poland’s draft law on minimum wage (no. UC62) will be discussed by the Standing Committee of the Council of Ministers, a step that typically precedes government adoption and submission to the Sejm. The stakes are high as this mechanism could determine wage dynamics for years to come.
The project proposes setting the minimum wage at 55% of the projected national average, up from the current 52%. If implemented, every increase in average wages would automatically “pull up” the minimum wage, creating a stronger connection between the lowest salary and overall economic dynamics.
Implementation of EU Directive
The Ministry of Family, Labor and Social Policy’s project implements the EU directive on adequate minimum wages. However, employers emphasize that the directive doesn’t directly impose a specific 55% threshold, where the dispute begins.
New regulations would guarantee that the minimum wage is annually indexed by at least forecast inflation, theoretically providing greater transparency but potentially limiting government maneuverability during crisis years.
Diverging Stakeholder Positions
Trade unions argue that enshrining 55% in the law protects employees from arbitrary political decisions, serving as a safety shield during high inflation and rising living costs. Meanwhile, employer organizations point out that after the CJEU ruling, member states aren’t obliged to accept specific reference indicators and warn the project may excessively rigidify the system.
Potential Beneficiaries
The most obvious beneficiaries will be people earning the minimum wage, particularly in sectors like trade, services, healthcare, gastronomy, and auxiliary administration. The effects may be broader, potentially leading to higher prices for services and products, especially in sectors with low margins.
Regional and Business Concerns
The biggest concerns relate to micro and small enterprises, especially in smaller towns where the ratio of minimum wage to local average earnings is often much higher than the national average. In some counties, this could mean significant portions of employees earning exactly the same amount regardless of experience, risking wage grid flattening and pressure to reduce full-time positions.
Structural Changes
The project provides for the gradual exclusion from minimum wage calculations of components such as functional allowances or bonuses. For employers, this means a real increase in base salary requirements rather than supplementing with additional payments. Initially planned for faster implementation, the changes were postponed to subsequent years following negotiations and pressure from social partners.