Bez kategorii 23.05.2025

European minimum wage – how will it affect the salaries of Polish employees?

Two weeks ago, the European Parliament adopted regulations on minimum wages for employees within the EU. The objectives of the adopted directive (COM(2020) 683 final 2020/0310 COD) are to ensure a decent standard of living and working conditions, as well as to promote collective wage bargaining by Member States. In the face of the energy crisis and economic stagnation caused by the pandemic, the European Parliament aims to improve the working and living conditions of all employees in the Union, as well as to support socio-economic progress. The directive applies to all persons employed under an employment contract or an equivalent, recognised employment relationship under national law.

Wages in the European Union

The directive does not establish a single, common minimum wage rate for all Member States. Due to differences in employment conditions and living costs between individual EU countries, it would be impractical to set an average amount applicable to every country. The gap between the highest and lowest monthly minimum wage in the EU currently amounts to almost €2,000. The highest applies in Luxembourg, and the lowest in Bulgaria. Therefore, the directive provides only certain guidelines intended to streamline the procedure for setting the minimum wage and adapting it to the economic conditions prevailing in each country.

Collective agreements

This concerns so-called collective agreements, which are especially common in Western Europe. These are specific agreements binding the government and the largest trade unions, setting separate minimum wages for each sector/industry (e.g. textile industry, meat processing, electrical engineering, or transport). In some cases, individual labour ministries grant them the status of universally binding, meaning the rates contained therein are mandatory for all employers in the given sector. Some countries have completely abandoned statutory minimum wages, shifting the responsibility for their determination to universally binding collective agreements.

The directive indicates that Member States where collective agreements cover less than 80% of employees should adopt measures aimed at strengthening such collective bargaining. Member States where the coverage of collective bargaining does not exceed the 80% threshold should provide frameworks to facilitate collective bargaining and establish action plans to promote collective negotiations. While there is currently no obligation for Member States to conclude collective agreements, considering the direction of EU legislation, this may not be ruled out in the near future. Under the directive, Member States below the indicated threshold should implement a specific action plan aimed at increasing the share of collective bargaining. Furthermore, they are required to update this plan every five years and submit these updates to the European Commission. The coming six months will show how these guidelines will be implemented within Polish legislation.

Minimum wage in the European Union

The fundamental guideline of the directive is the principle that the minimum wage should ensure every employee a decent standard of living. The directive suggests Member States establish a so-called national basket of goods and services at actual prices. This instrument is intended to determine the cost of living at the national level. Beyond material needs such as food, clothing, and housing, it should also consider the need for participation in cultural, educational, and social activities.

The directive also provides examples of other indicators to assist Member States in setting and updating statutory minimum wages. Member States may choose from internationally recognised reference values or indicators applied at the national level. These include internationally common benchmarks such as the ratio of the gross minimum wage to 60% of the gross median wage or the ratio of the gross minimum wage to 50% of the gross average wage. Assessments can also be based on national reference indicators, such as comparing the net minimum wage to the poverty threshold and the purchasing power of the minimum wage.

Enforcement of regulations – employers to face more inspections

The directive mandates the organisation of an effective enforcement system, including field inspections. It calls for strengthening the effectiveness of inspection bodies to address key issues such as frequent abuses in subcontracting (particularly common in the Polish labour market), bogus self-employment, unregistered overtime, or health and safety risks linked to increased work intensity. Member States are required to implement routine and unannounced inspections, judicial enforcement procedures, and deterrent penalties discouraging employers from violations.

Minimum wage 2022/2023 – net amounts

It is currently unclear how the directive will be implemented within Polish law. The current minimum wage amount (PLN 3,010) will remain unchanged until the end of 2022. The minimum wage from 1 January 2023 will be PLN 3,490 gross, an increase of PLN 480 compared to the current rate.
If you have any doubts regarding the upcoming regulations or wish to minimise the risk of adverse consequences from inspections by the State Labour Inspectorate or the Social Insurance Institution, we invite you to use the services of our law firm. ATL Law lawyers provide employers with comprehensive legal assistance in all areas related to human resources management and labour law. Our support includes legal advice tailored to the specific needs of your company, covering all aspects important from a business perspective and ensuring legal security. We invite you to explore our offer.

Bez kategorii 23.05.2025

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