The new Polish act on minimum wages: Poland adjusts its regulations to the EU standards

Poland is working on a new act on minimum wages that will be in line with EU Directive 2022/2041. The changes will ensure fair remuneration and introduce stricter sanctions for infringement of workers’ rights. Learn more about the new regulations that will come into force in 2026!

Polish act on minimum wages: a need for change

The European Union obligated its member states to implement regulations compliant with Directive (EU) 2022/2041 of 19 October 2022 on adequate minimum wages (OJ L 275 of 25.10.2022, p. 33). Poland, despite of the act on minimum wages applicable since 2002, must adjust its regulations to the EU standards. Thus, there are plans for adopting a new act on minimum wages in the 3rd or 4th quarter of 2024.

Adequate minimum wage: criteria and indicators

The said directive stipulates that the minimum wage must be fair and ensure a dignified standard of living of full-time employees. The directive also indicates the need of assessing the adequacy of such wage with indicators such as 60% of the median or 50% of the average gross remuneration. At the same time, the directive is not intended to harmonize the level of minimum wages in the European Union or establish a uniform mechanism for the determination of minimum wages. A great emphasis in the determination of minimum wages is placed on the role of social partners, highlighting that average wages are higher in countries with a high level of collective bargaining. That is why countries in which the range of collective bargaining does not exceed 80% should undertake action aimed at increasing it.

Propositions of the Polish Confederation Lewiatan: the mathematical formula for the minimum wage

In Poland, the Polish Confederation Lewiatan postulates that the minimum wages should amount 50% of the average wages, with a guaranteed increase by the value of inflation while stressing the need for a greater correlation between the minimum wage and the current or forecast economic situation. The Polish Confederation Lewiatan also suggests reducing the role of the government in favor of social partners, proposing a minimum wage determination mechanism based on a mathematical formula.

New act: what will be changed in the regulations?

The new act does not provide for revolutionary changes but repeats many of the current solutions. The two dates on which the minimum wage is changed (1 January and 1 July, if the forecast inflation rate for the next year is at least 105%) will be maintained and the Polish Social Dialogue Council will still serve an important role. The draft provides for an annual increase of the minimum wage adjusted to the forecast price increase and a revaluation of remuneration every four years, taking into consideration, among others, the purchasing power, level and distribution of remunerations.

The new regulations are also supposed to introduce stricter sanctions for infringement of workers’ rights, including untimely payment of wages, by adding new sanctions in the Polish Labor Code and the Polish Criminal Code. The said changes will not affect the minimum wage in 2025 but most probably will apply starting from 2026.

Author: Martyna Ścierska, Senior HR & Payroll Specialist from accounting office in Katowice