Government proposal to rise minimum wage to PLN 4806 gross from 1 January 2026 It's information that seems to delight millions of employees. However, fewer people are aware of her second hidden bottom. This change is an unexpected but powerful gift for all debtors in Poland and at the same time a powerful blow for creditors. All through a deduction-free mechanism, which is inextricably linked to the minimum wage.
In practice, this means that a bailiff, trying to enforce claims another than maintenance, will gotta leave much more money on the debtor's account than before. The amount free of charge will increase from the current PLN 3510.92 net to PLN 3605,85 net per month. This seemingly tiny difference translates into over a 1000 gold extra protections each year. For thousands of people struggling with debt is simply a real revolution that can paralyze the debt collection strategy in the country and fundamentally change the rules of the financial market.
How does the protection shield work for debtors? The mechanics is simple
The mechanics to defend wages from ventricular execution, enshrined in the Polish Labour Code, was created as an instrument of social justice. Its aim is to supply workers with a minimum existential, even in a situation of serious debt. The key component of this strategy is deduction-free amountwhich ensures that the employee’s account for the employment contract always remains equivalent to the net minimum wage.
This system, although noble in its assumptions, has a direct consequence: any minimum wage increase automatically and by law raises the threshold of protection for debtors. In 2026, erstwhile the minimum wage reaches PLN 4806 gross, the amount free of deductions (excluding alimony) will increase to PLN 3605,85 net. This means that the bailiff will only be able to take over the amount. For a individual who earns, for example, PLN 4000 net, execution will become virtually impossible as his remuneration will be protected in its entirety.
Experts in the collection manufacture are alerting that this is an unintended but highly effective mechanics that weakens the effectiveness of executions. The difference of nearly 100 PLN per period in the country and hundreds of thousands of debtors translates into millions of PLN, which will stay out of the scope of creditors. This phenomenon can lead to a situation where debts will expire much more frequently due to the inability to enforce them.
Creditors in trouble. No more fast recovery?
Systematic and jumpy minimum wage increases are becoming a real headache for the full financial sector. Receipts, banks and debt institutions they face a fresh challenge – the recovery process will importantly extend and complicate. In practice, this means that capital is frozen for a long time and that operational hazard is increased. This hazard will not stay unanswered.
Market analysts foretell that financial institutions will gotta compensate for the increasing difficulties in collecting debts. The simplest way is increasing the cost of loans to all customers. Higher margins and commissions will become a safety buffer in case the debtor ceases to repay the work and his wage is protected. As a result, all borrowers, even the most reliable, will be indirectly paid for the “gift to debtors”.
The micro-loans and the alleged "minutes" sector will be peculiarly affected. These companies based their business models on fast and effective execution in the event of default. The increase in the deduction-free amount may force them to fundamentally revise the strategy, tighten the criteria for granting backing or even retreat part of the offer from the market.
Who gets the most? Workers with an ‘approximately minimum’ salary
Paradoxically, the biggest beneficiaries of the change will not be those who gain a minimum wage, but those whose wage somewhat exceeds it. It is in this social group that the "protection shield" effect will be most visible. Imagine a individual making money. PLN 5000 gross (approximately PLN 3730 net). After an increase in the amount free to PLN 3605,85, the bailiff will be able to take only about PLN 125 per month.
With a debt of respective tens of 1000 zlotys, repayment at specified a rate will take decades, which from the creditor's position is tantamount to inability to recover the money within a reasonable time. This phenomenon can lead to dangerous “moral gambling”. Knowing that the bailout is not severe can lead any consumers to make more reckless commitments. The debtors will be able to keep a comparatively comfortable standard of living, paying only symbolic amounts, which undermines the fundamental principles of work for their own finances.
The exception confirms the rule. Alimony debtors without a reduced tariff
However, it should be stressed that not all debtors can sleep peacefully. The Polish legal strategy specifically treats maintenance obligations. In this case, the rules are much more restrictive. The bailiff has the right to occupy up to 60% of the maintenance debtor’s salaryand, most importantly, in this case, the deduction-free amount is not applicable.
This legal asymmetry creates 2 categories of debtors. People with consumer credit arrears, loans or unpaid invoices will be protected by fresh higher limits. In turn maintenance debtors They will inactive gotta face very severe consequences of executions that can deprive them of more than half their salary. This is crucial information, which shows that the state inactive prioritises the work to keep children, even at the expense of a drastic simplification in the debtor's income.
In conclusion, the planned minimum wage increase is simply a double-edged sword. On the 1 hand, it supports the least earners and creates a powerful shield for debtors, on the another hand – it can distort the stableness of the financial marketplace and in the long word increase credit costs for all Poles.
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The government raises the minimum wage. The bailiff will be helpless against thousands of debtors!
