Earnings have always been of interest to every job candidate, but with the current inflation, it is an even more crucial issue. The minimum wage is determined annually by the government based on the analysis of the economic situation and the labor market. It's no wonder that at the beginning of 2023, this rate increased, and it will rise again from July. What is the minimum wage, and what increases have occurred in the current year?
What is the minimum wage?
The minimum wage is the lowest amount that an employer can pay an employee for specific work. It is determined by law, protecting the employee from exploitation and income inequality, aiming to prevent situations where an employee works below the established rates. The minimum wage applies to employees hired under an employment contract and includes the basic salary and all other benefits specified in the employment contract, which constitute costs for the employer. These may include holiday pay, social security contributions, the Labor Fund, or additional payments for weekend or holiday work. So, what is the net minimum wage in Poland?
What is the minimum wage in 2023?
In 2022, the minimum wage was 3,010 PLN. However, inflation related to the ongoing war in Ukraine for over a year led to significant increases. From January 2023, the minimum wage in Poland is 3,490 PLN, which means it is 480 PLN more than the previous year. The net salary at this rate is 2,695 PLN per month. The hourly rate has also increased, from 19.70 PLN in 2022 to 22.80 PLN now. Forecasts indicate that from July this year, the minimum wage will rise again. This increase will raise the minimum wage to 3,600 PLN, which is 590 PLN more than the previous year. The minimum hourly rate will increase to 23.50 PLN, which is 3.80 PLN more than in 2022. Does the government plan to change the minimum wage in the following year as well?
Minimum wage in 2024 - how much will it be?
July is approaching, along with the mentioned increases in the minimum wage and hourly rate, and the government is already forecasting further wage growth from January 2024. The overall goal is for the minimum wage to exceed 4,000 PLN from January 2024. The current government proposal suggests that the gross minimum wage would be 4,242 PLN. As for the hourly rate, it would be raised to 27.70 PLN. Furthermore, another wage increase is planned for July 2024. The government's idea is for the minimum wage to reach 4,300 PLN, and the hourly rate to be 28.10 PLN. However, these plans are not supported by the OPZZ. Their proposal is to set the minimum wage at 4,300 PLN from January 2024 and 4,540 PLN from July 2024. How do wages in other EU countries compare?
Minimum wage in other European countries
Germany has been a significant destination for Polish migrant workers for years. Therefore, wages in this country in various industries and the minimum wage continue to be of interest to us. Since October 2022, the minimum wage in Germany has increased to 12 euros gross per hour. This means that for a 40-hour workweek, the gross monthly earnings amount to 2,080 euros. Converted to PLN, 12 euros is approximately 56 PLN, which is significantly higher than the hourly rate in Poland. In the Netherlands, from January 1, 2023, the minimum gross wage for workers over 21 years old is 1,934.40 euros per month, and the hourly rate has increased to 12.40 euros. Due to recent earnings, Belgium has become an attractive destination for migrant workers. The minimum wage in this country is 1,955 euros gross per month. Luxembourg and Germany continue to dominate in terms of the national minimum wage, which is 2,387 euros gross per month in Luxembourg.
