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Poland is set to witness a notable rise in the minimum wage next year, as the nation grapples with the challenges posed by inflation, according to the Minister of Family and Social Policy.
Starting from January 2023, the minimum wage increased from PLN 3,010 (EUR 664) to PLN 3,490 (EUR 770), and another hike is scheduled for July 1, 2023, bringing it up to PLN 3,600 (EUR 794).
Simultaneously, the minimum hourly rate also saw an upward adjustment, rising from PLN 19.60 (EUR 4.33) to PLN 22.80 (EUR 5.03) effective January 1, and further to PLN 23.50 (EUR 5.19) from July 1.
Marlena Malag, in an interview with PAP (Polish Press Agency) on Saturday, stated that “next year’s minimum wage will exceed PLN 4,200 (EUR 927) due to high inflation.” She added, “Similar to this year, it will be determined on two occasions – January 1 and July 1.”
The primary motivation behind this decision, as emphasized by Malag, is to ensure that individuals in Poland earning the lowest wages have the opportunity to lead a dignified life. Currently, approximately 3 million people in the country receive the minimum wage.
According to legal obligations, the government must raise the minimum wage twice a year if the previous year’s average annual inflation surpasses 5 percent.
The latest data for April 2023 reveals a 14.7 percent increase in the prices of goods and services compared to the same month in 2022.
By June 15, the Council of Ministers is obligated to present a proposal for next year’s minimum wage and minimum hourly rate to the Social Dialogue Council. This advisory body comprises representatives from the government, trade unions, and employers.
Maląg stated that the objective is to ensure the timely submission of the draft proposal for the 2024 minimum wage to the Standing Committee of the Council of Ministers within the following week. Subsequently, there is a possibility that it will be presented during the Council of Ministers meeting scheduled for June 13th.