Minimum wage 2023. How much and when will it increase?

The minimum wage in 2023 for a full-time job will increase to PLN 3,450 from January and PLN 3,500 from July. The official government decision will be made on September 13.

Minimum wages 2023

– This is the implementation of Kaczyński’s hat trick announced in 2019, at the convention in Lublin, just before the parliamentary elections – the DGP established in government circles. – An increase to PLN 3,450 and PLN 3,500 in 2023 is a step towards the then promised raise to 4,000. PLN minimum salary in 2024 – we heard from our informant.

Let us recall that in 2019 there was also a promise to pay pensioners two 13ths and to increase EU subsidies per hectare to the European level.

Time to announce the minimum wage rates

According to our information, Marlena Maląg, the minister of family and social policy, is to present these new rates for approval by the government at the Tuesday meeting of the Council of Ministers. This is the last moment to make such a decision because Under the Minimum Wage Act, the government only has until September 15 to announce the rates for next year. Due to high inflation regulations require that the raise should take place in two stages.

Currently, the proposed rates are clearly higher than the original proposal of the Ministry of Family, i.e. an increase to PLN 3,383 from January and PLN 3,450 from July. Trade unions questioned these amounts because they did not meet the minimum guaranteed by the law. According to the assumptions of the June budget act, it amounted to PLN 3,416. After updating the draft budget act for next year, this minimum increased to PLN 3,447.

Increase of the minimum salary it’s bigger costs entrepreneurs

– If this unofficial information translated into a real raise minimum wage – to a level beyond what is guaranteed by the act, it would mean that the pressure exerted by trade unions on the government in recent months made sense – comments Norbert Kusiak from the OPZZ. – However, let’s wait for the official decision of the government in this regard, because in previous years it often happened that the minister of the family made a proposal, and the final decision of the government was higher anyway. Remember that we are talking about gross amounts, which, after removing taxes and contributions, when they are transferred to the employee’s account, will be much lower. A growing prices energy and food are a fact and will absorb the increase in full, he adds.

Increase of the minimum salary up to PLN 3,450 from January and PLN 3,500 from July means more for entrepreneurs coststhan originally planned, because it exceeds what is guaranteed by the law – notes Łukasz Kozłowski, chief economist of the Federation of Polish Entrepreneurs. – And the government should remember that it is becoming more and more difficult for entrepreneurs to compensate for the rising costs of their operations, because they concern not only salaries, but also energy and materials necessary for running a business. They will need protective support from the government so that the growing financial pressure raising the costs of their operations to unprecedented levels does not lead to the collapse of their enterprises, he emphasizes.

Our informant believes that the planned increase will not be an excessive burden for business. The minimum wage rate will be 51 percent. average salary.

Larger budget revenues, higher budgetary expenses

Such a raise means a partial implementation of the demands of the trade unions, which first demanded a raise to PLN 3,500 from January and PLN 3,750 from July. During the negotiations in the Social Dialogue Council, there was even a “one-off” proposal for a compromise and a raise to 3,450 from January and 3,600 PLN from July. The government did not officially address any of them. Most likely, they will be part of the debate at the Tuesday meeting of the Council of Ministers.

It may also turn out that the government will ultimately adopt higher amounts, as was the case in 2019, when a few days after the announcement of the hat trick by President Kaczyński, the government decided to increase the minimum wage so far from PLN 2,250 to PLN 2,600 and outbid trade unions’ expectations. It is all the more possible, as the increase in the minimum wage means an increase in revenues to the state budget from taxes and contributions from these wages. It is true that the government must also take into account the increase in expenditure of the budgetary sphere, which as employer and the public procurement side will have to pay more after the increase. Nevertheless, our calculations show that the state budget will gain about PLN 4.7 billion net from this increaseby PLN 600 million more than in the previous June proposal to increase the minimum wage to PLN 3,383 from January and PLN 3,450 from July next year.

Mateusz Rzemek

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