Minimum wage to be increased more than previously announced

The Polish government has announced that it will increase the national minimum wage by almost 16% in 2021 instead of the previously proposed 12%.

Key Points:

• Beginning Jan. 1, Poland’s minimum salary will increase by 480 PLN from 3,010 PLN to 3,490 PLN.
• In July 2023, the minimum monthly wage is set to increase again from 3,490 PLN to 3,600 PLN.
• Polish authorities had previously proposed an increase of only 373 PLN on Jan. 1 and an additional 67 PLN increase in July 2023.
• The new minimum wage will apply to new applications submitted on or after Jan. 1, 2023, and applications that were submitted before Jan. 1, 2023, that are still pending.
• The new minimum wage requirements will not affect EU Blue Card minimums.

BAL Analysis: Businesses may see a slight increase in labor costs once the new minimum wage takes effect. Employers should take the new minimum wages into account when planning their 2023 budgets.

This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.

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