As early as 1 January 2025, the minimum wage in Poland will increase to PLN 4666 gross. This is an increase of PLN 366 compared to the minimum wage in 2024. Thus, the minimum hourly rate will also increase, which from 1 January 2025 will amount to PLN 30.50 gross, i.e. it will increase by PLN 2.40. Importantly, in 2025, no additional changes to the minimum wage are expected during the year, which means that this amount will apply throughout the year.
How much will employees “take-home” pay be?
In 2025, assuming a full-time job, the gross minimum salary will be PLN 4666, but standard contributions must be deducted from this amount. If there are no changes, PLN 455.40 will have to be paid for pension contributions, PLN 69.99 for disability insurance and PLN 114.32 for sickness insurance. There is also a health contribution of PLN 362.37 and an advance payment for PIT, which will amount to PLN 153 without relief.
After deducting these compulsory costs, the employee’s account will receive PLN 3510.92. This is the minimum amount that every full-time employee will receive, regardless of industry or position.
Costs for the employer
Assuming a gross amount of PLN 4666, the cost to the employer will be PLN 5621.59. This is almost £450 more than in 2024!
Some industries may face the challenge of adjusting to higher labour costs. Businesses will need to find ways to optimise expenses, which may translate into a reduction in employment or the need to introduce automatisation.
Summary
An increase in the minimum wage always generates heated discussions about its impact on the labour market and the economy. On the one hand, it supports the lowest paid workers, on the other hand, it creates challenges for entrepreneurs, especially those in low-profitability industries. As always, the real impact of this change will depend on many factors.
If you have any questions or concerns regarding the minimum wage or other aspects of employment law, we encourage you to contact our law firm. You can count on comprehensive service and full commitment at every stage of your case.