The Ministry of Family, Labour and Social Policy (MRPiPS) has put forward a fresh proposal for a minimum wage which aims to bring Polish government into line with the requirements of the EU directive. The bill, which has just been put into public consultation, introduces a number of crucial changes in the minimum wage. fresh regulations can have a major impact on workers and employers in Poland. Read precisely what changes the fresh proposal and how it will affect the labour market.
Key Changes to the MRPiPS Proposal
1. fresh Minimum Remuneration Criterion
The proposed amendment introduces a fresh criterion for the minimum wage, which is expected to be 55% of the estimated average wage in the national economy. In practice, this means that the minimum wage will depend on the projected level of wages in the country. Currently, the ratio of the minimum wage to the average wage is 50.3%, and in 2024 it is expected to emergence to 53.7%. The fresh regulation aims to guarantee better protection of workers from low earnings.
2. Maintenance of the Minimum Remuneration Determination Mechanism
The draft Act provides for the continuation of the current minimum wage setting mechanism, which guarantees an yearly increase in wages not little than the projected increase in consumer goods and services prices. In addition, if the minimum wage is lower than half the average salary, the increase will be increased by 2/3 of the projected real GDP growth rate.
3. Compliance with the EU Directive
The draft law aims to implement Directive (EU) 2022/2041 of the European Parliament and of the Council, which requires associate States to introduce procedures for setting and updating minimum salaries, taking into account purchasing power, wage levels, growth rates and productivity. The Directive besides requires the statutory remuneration to be updated at least erstwhile all 2 years.
4. Indicative mention Values
The task includes indicative mention values, specified as 60% of median gross wages and 50% of average gross wages, to measure the statutory adequacy of minimum salaries. This is to guarantee that the minimum wage is adequate to the economical conditions and level of remuneration in the country.
What does this mean for employees and employers?
For Workers:
The fresh government aims to improve working conditions and pay for people earning minimum wage. Employees can number on higher salaries in the future, which will be more adapted to the current level of average salaries in Poland.
For Employers:
Employers will gotta adapt their salaries to fresh regulations, which may entail additional costs. It is crucial to follow the changes in the government and prepare for their implementation.
When will the fresh Recipes enter into force?
The proposed changes are expected to come into force from 2026, giving time to adapt to the fresh regulations. In the meantime, public consultations are underway to let comments and suggestions on the draft law.
The fresh proposal on minimum wage is simply a step towards adapting Polish law to EU standards. The changes aim to guarantee better working conditions and pay, which may improve the quality of life of workers in Poland.
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