Poland Abandons Plans For Minimum Wage Equalization

In a significant shift for Poland's labor market, the government has announced it will not proceed with plans to equalize the minimum wage with the basic salary, a move that many had anticipated would lead to wage increases for millions of workers. Instead, the Ministry of Finance has deemed the proposed reforms too costly, leaving many employees without the pay raises they had hoped for come 2026.

Initially, the government had intended to align the minimum wage with the basic salary, a change designed to eliminate employer abuses in wage setting. However, after extensive discussions and consultations among various ministries, this provision was ultimately removed from the final draft of the amendment to the minimum wage law.

According to reports from Wprost, the law that has now been submitted to the Committee for European Affairs does not include provisions for pay increases starting January 1, 2026. This decision comes despite the fact that, as of February 2025, the average gross monthly wage in the enterprise sector was reported at 8613.14 PLN, reflecting a 7.9% increase from the previous year.

From January 1, 2025, the minimum wage in Poland was raised to 4666 PLN gross per month, marking an increase of 366 PLN compared to the previous rate. This adjustment translates to a net monthly income of approximately 3511 PLN for minimum wage workers. The minimum hourly wage also saw an increase to 30.50 PLN, which is a rise from the previous 28.10 PLN.

Despite these increases, the government’s decision to scrap the equalization of the minimum wage with the basic salary means that many employees will not see the benefits of rising wage standards. Currently, allowances and bonuses are included in the minimum wage calculation, with exceptions made only for night work allowances and jubilee awards. This practice has led to a lack of transparency in wage systems, allowing some employers to set the basic salary below the minimum wage.

As of late 2024, approximately 3.6 million workers, or nearly 28% of all employees, were earning the minimum wage. Most of these workers are employed in small businesses, where up to 90% of staff might be on minimum wage. The government’s long-term projections indicate that by 2026, the minimum wage could rise to approximately 5070 PLN gross, constituting 55% of the forecasted average wage in the national economy.

The planned reforms are partly a response to the European Union's Directive (EU) 2022/2041, which mandates member states to ensure adequate minimum wages. However, the Polish government has faced pushback from various ministries, particularly the Ministry of Finance, which has raised concerns about the financial implications of these reforms for the public sector.

Looking ahead, while the government has abandoned the idea of equalizing the minimum wage with the basic salary, it has retained proposals to exclude certain components from the minimum wage calculation. Starting in 2026, function allowances will be excluded, followed by other allowances in 2027 and bonuses and awards in 2028. This means that workers can expect a clearer distinction between their base pay and additional earnings.

In terms of penalties for non-compliance, the draft amendment also proposes an increase in fines for employers who fail to pay wages, with penalties potentially reaching up to 50,000 PLN. This measure aims to strengthen enforcement of wage laws and protect workers' rights.

As the minimum wage continues to be a crucial issue for a significant portion of the Polish workforce, the government’s decisions will undoubtedly have lasting impacts. The lack of a planned increase in 2026, coupled with the ongoing discussions about the implementation of a European minimum wage, leaves many workers in a precarious position. With inflation rates and living costs continuing to rise, the call for fair wages remains an urgent topic within Poland’s socio-economic landscape.

In summary, while the Polish government has made some strides in increasing the minimum wage, the recent decision to abandon the equalization of the minimum wage with the basic salary has left many workers feeling disillusioned. As debates continue over the future of wage policies and the implementation of EU directives, the focus will remain on ensuring fair compensation for all workers in Poland.