The year 2025 will start with crucial changes for more than 3.2 million Poles Working for minimum remuneration. According to the government's decision, the rate Minimum wage will be raised to PLN 4666 gross (which gives PLN 3511 net). Although this change may initially seem beneficial, there are a number of consequences that can affect the lives of millions of Poles.
Increase in minimum wage: profits and losses
New minimum wage means significant gross growth for those working at the lowest national level. For many of them it will be PLN 249 net more each month, which per year gives about PLN 2988. However, this increase is associated with higher taxation burden. Workers receiving minimum wage will gotta pay 153 gold per month for the PIT tax, which gives PLN 1836. This is simply a crucial increase compared to the current situation where the yearly taxation is PLN 1344.
In addition, thanks to the higher minimum wage, National wellness Fund (NFZ) will get additional PLN 1.1 billion for wellness contributions, which may improve the quality of wellness services in Poland. Although these changes can bring any benefits to the state budget, not all Pole will associate them solely with the benefits.
Minimum wage increase and economical impact
Despite the expected 5 % price increase in 2025, a minimum wage increase raises mixed feelings. The government originally planned lower rateHowever, under the force of trade unions, higher increases were decided. Interestingly, in 2025 the minimum wage will only be increased once, which is simply a change compared to erstwhile years erstwhile increases were made twice a year.
The expected minimum wage increase may have far-reaching social consequences. An increase in labour costs may lead any employers to reduction of employment or changes in forms of employment, by switching to Civil law agreements is outsourcing. specified changes may lead to increased occupation insecurity and the deterioration of the situation of the least earners, who frequently have no alternatives to working for a contract of employment.
Impact on SMEs
Increase in minimum wage will besides have negative impact on SMEs. Companies, especially those operating in regions with lower average earnings, may have difficulty covering higher employment costs. For many entrepreneurs, especially in the sector SMEs, higher remuneration may constitute too much financial burden. As a result, entrepreneurs can change their employment structures, leading to growth of the grey zone or even closing down business. This in turn can deepen economic differences between the regions of Poland.
Economic price increases
The minimum wage increase will not be without impact on the overall price level in the economy. Entrepreneurs who incur higher labour costs may be forced to price increases their products and services to compensate for losses associated with higher wages. Consequently, this can lead to an increase in inflation and thus worsen the situation of consumers, especially those who are already facing financial difficulties.
Social and economical impacts
Changes in minimum wage may besides have social impacts, including impact on the demographic and social structure in Poland. On the 1 hand, higher salaries can contribute to improving the quality of life people earning the lowest national. On the another hand, an increase in employment costs can lead to professional uncertainty among the least earners, especially those who have no higher education or specialist skills.
In addition, changes in the employment structure, specified as expanding the number of civilian contracts, may lead to deterioration of the situation of workerswho lose the right to Employment stability and social security. specified changes may besides affect Increasing social inequalities, especially in the little developed regions of Poland, where lower earnings are common.
More here:
Huge changes for Poles: fresh minimum wage from 1 January 2025
