Minimum wage 2023 – how much is the lowest national wage?
The beginning of the year is a time for changes and increases in the minimum wage. The minimum wage protects employees from working below the set rates. The 2023 minimum wage will increase as much as twice. With inflation rising so fast, any increase in money is good, but is it enough? How much will the 2023 minimum wage be?
TABLE OF CONTENTS
- What is the minimum wage?
- Minimum wage 2023 – how much is the lowest national wage?
- Minimum hourly rate
- Minimum wage 2023
- Who sets the minimum wage?
- Current minimum wage rates in other EU countries
- Changes in the minimum wage over the past years
- How does the minimum wage affect the economy?
- Minimum wage – forecasts for 2024
What is the minimum wage?
This is the lowest amount of wages that an employer must pay to a person who is employed under an employment contract. If he does not comply with this law, he is subject to a penalty set by the Labor Court. Paying a salary lower than the set one is a violation of labor rights.
In Poland, the minimum wage is set every year, based on the Minimum Wage Law. Legal basis:
Law of October 10, 2002 on the minimum wage (Journal of Laws of 2002, No. 200, item 1679): Article 6. 1. The amount of remuneration of a full-time monthly employee shall not be lower than the amount of the minimum wage established pursuant to Article 2 and Article 4.
Ordinance of the Council of Ministers of September 15, 2022 on the amount of the minimum wage and the amount of the minimum hourly rate in 2022 (Journal of Laws 2022, item 1952)
Minimum wage 2023 – how much is the lowest national wage?
The 2023 minimum wage will increase as much as twice. Its increase is due to the ever-increasing inflation caused by the war in Ukraine. The increase in the minimum wage depends on the rate of price increases that are projected for the next year. This year the rate is scheduled at 10 percent.
How much is the minimum wage 2023?
As of January 1, 2023, the minimum wage increased from PLN 3010 to PLN 3490 gross.
As of July 1, 2023, the minimum wage is scheduled to rise to PLN 3600 gross.
This is 480 PLN more than last year.
Minimum hourly wage
The minimum hourly rate is the lowest wage that an employer is required to pay its employees for each hour of work. It applies to those who have entered into a civil law contract (contract of mandate, contract for work). It is intended to ensure a minimum standard of living for employees and protect them from exploitation by employers.
Minimum wage 2023
The minimum rate in 2023 will also increase. It will be higher by PLN 3.80 than in the previous year. How much will the minimum rate be?
- As of January 1, 2023, the minimum rate will increase to PLN 22,80
- As of July 1, 2023, the minimum rate will increase to PLN 23, 50
Who sets the minimum wage?
The minimum wage is set not at the beginning of the year, but much earlier. In Poland, this term was introduced in 1956 to normalize the level of wages. The minimum wage is set by the state, more precisely:
The Ministry of Family, Labor and Social Policy submits a proposal to the Council of Ministers.
The Council of Ministers analyzes it and issues a response.
If the minimum wage is approved, it goes to the Council for Social Dialogue for consultation.
The Social Dialogue Council must submit its proposal to the Council of Ministers by July 15.
If it fails to do so, the government has until September 15 to set the wage itself.
The minimum wage cannot be lower than the first proposal that was approved by the Council of Ministers.
Current minimum wage rates in other EU countries
The minimum wage in Poland has doubled over the past 13 years. Unfortunately, compared to other EU countries, we are still not in the top 10. Below is a table of changes in the minimum wage from 2010-2023 in EU countries:
Minimum wage rates have increased everywhere during this period except Greece, which saw a decrease of 31 euros between 2010 and 2023. The largest wage increases were seen in Luxembourg, Slovenia and Lithuania.
Changes in the minimum wage over recent years
Every increase in the minimum wage translates into an improvement in the living situation, for the lowest paid workers. The minimum wage has changed slowly over the years, climbing year by year. Since 2010, it has risen by as much as PLN 2283 gross (counting on the salary that will be introduced from July).
How does the minimum wage affect the economy?
The minimum wage is a controversial topic that has its supporters as well as opponents. It performs many functions, but the most important is to ensure a livelihood at an appropriate level. It affects not only their lives, but also the functioning of the economy:
- GDP increases
- improves the lives of citizens
- strengthens demand in the economy
- reduces the scale of exploitation
- wage growth raises the cost of living
- reduces the competitiveness of the economy
Minimum wage – projections for 2024
Due to the drastic increase in inflation, politicians had to introduce a double increase in the lowest national wage in 2023. It is very possible that in 2024 we may face a similar procedure. According to the announcements of those in power in 2024, the minimum wage should rise to about 4,000 PLN gross. Through numerous economic and economic factors, it is not ruled out that the minimum wage will rise above the stated level.
The Polish state is trying to fight inflation, through which the minimum wage 2023 will increase twice. From January it will be 3490 PLN gross, and from July 3600 PLN gross. Starting in the new year, other benefits such as allowance for night work, pay for downtime, severance pay for mass layoffs have also been introduced.
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