The minimum wage in Poland. The current situation and proposed changes for 2021.

The Polish Council of Ministers adopted the draft of state budget for 2021, according to which next year’s GDP will increase to 4%. The government policy will concentrate on restoring Poland’s economic potential, and one of its elements will be setting the minimum wage rate for the next calendar year.

The minimum remuneration for work (concerning employees taking up full-time jobs based on employment contracts) in 2020 amounts to 2600 PLN gross per month, which means an increase by 350 PLN (15.6%) in comparison to the last year, when the lowest remuneration amounted to 2250 PLN gross. According to the Eurostat calculations, the minimum wage at the level of 2600 PLN gross, as converted into a common currency, gives the amount of 611 EUR, and thus places Poland on the 13th place when compared to 21 countries of the European Union which introduced the minimum wage.

Compared to 2019, the position of Poland in the above ranking has improved by two places. The lowest minimum wage rate is recorded in Bulgaria (when converted, it amounts to 312 euros) and the highest in Luxembourg (2142 EUR). The highest minimum wage rates are found in countries located in the west and north of the EU, while the lowest rates can be noted mainly among countries located in Central and Eastern Europe.

The Council of Ministers adopted the assumptions to the draft state budget for 2021 submitted by the Ministry of Finance, which show that the next year’s minimum wage increase will not be as significant as the one announced in 2020 – among other things, due to the recession caused by the coronavirus. The project assumes that the minimum remuneration for work taking effect from January 1 of the next calendar year will amount to 2800 PLN gross, which means an increase of 200 PLN (7.7%) when compared to this year.

Persons employed on the basis of other civil-law contracts (specific task contracts and contracts of mandate) might also expect an increase in the minimum hourly rate. In 2021 it would be at the level of 18.30 PLN gross. That means an increase of 1.30 PLN as compared to the rate in force this year (17 PLN gross).

The Government Information Centre stated that in 2021 the minimum wage will constitute 53.2% of the projected average remuneration in the national economy for 2021, whereas in the current calendar year it is 49.7%. 

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