Since August 2024, the Polish government has been working on a new law concerning the minimum wage, a move that has stirred significant debate and concern among workers and employers alike. Initially, the proposal aimed to align the minimum wage with the basic salary, effectively meaning that bonuses and allowances would no longer contribute to the minimum wage calculation. However, the government has since retreated from this approach, leading to the conclusion that employees will not receive the anticipated salary increases starting January 1, 2026.
The current draft of the law maintains the existing system where various allowances and bonuses are included in the minimum wage, with certain exceptions such as jubilee awards and night work allowances. This proposed change was intended to enhance transparency and fairness within the remuneration system. However, various ministries, including the Ministry of Finance, expressed concerns, arguing that such changes would impose excessive costs on both the public and private sectors.
In its final form, the draft law outlines a phased exclusion of specific components from the minimum wage calculation. The function allowance will be excluded starting January 2026, followed by other allowances in January 2027, and bonuses and awards by January 2028. Consequently, employees whose basic salary is currently below the minimum wage will not automatically see an increase in their pay from 2026. The new law also stipulates an annual assessment of the minimum wage, with updates every four years, aiming for the minimum wage to represent 55% of the projected average wage.
Additionally, the draft law introduces stricter penalties for non-payment of wages, with fines reaching up to 50,000 PLN or even restrictions on liberty for employers who fail to pay employees on time. The new regulations are set to take effect 14 days after the law is officially announced.
The government’s shift away from equalizing the minimum wage with the basic salary has raised eyebrows. Critics argue that this decision allows employers to continue setting basic salaries below the national minimum, effectively denying thousands of employees the raises they were promised. The planned legislation was initially a response to the EU directive 2022/2041, which mandates adequate minimum wages across member states, a directive Poland is required to implement by November 15, 2024.
Under the new law, the minimum wage will not be synonymous with the basic salary, which is a fixed amount paid monthly and does not include bonuses or allowances. As it stands, the minimum wage encompasses not only the basic salary but also additional benefits arising from employment, except for a few specific cases. The original proposal aimed to change this by ensuring that all employees had a basic salary at least equal to the minimum wage, thereby making bonuses and allowances additional components of their total remuneration.
However, during inter-ministerial consultations, significant objections were raised against this proposal. The Ministry of Finance, for instance, argued that equalizing the basic salary with the minimum wage would lead to considerable financial implications for the public sector. They noted that the current structure already excluded certain allowances from the minimum wage, and the proposed change would disrupt this balance.
In light of these concerns, the Ministry of Family, Labor, and Social Policy ultimately decided to abandon the idea of aligning the basic salary with the minimum wage. The revised draft law no longer includes provisions for establishing the minimum wage as the basic salary, instead opting for a phased approach to exclude certain components from the minimum wage calculation.
As a result, employees currently earning a basic salary below the minimum wage will see no increases starting January 1, 2026, as initially planned. Instead, they may only see improvements in their pay when various allowances are gradually excluded from the minimum wage calculation over the next few years.
The law also emphasizes the importance of annual assessments of the minimum wage to ensure it reflects the economic realities of the country. These assessments will consider factors such as the purchasing power of the minimum wage, the overall wage distribution, and long-term productivity levels. The goal is to ensure that the minimum wage is not only adequate but also contributes to reducing poverty and promoting social cohesion.
Moreover, the draft law introduces a new type of employer offense related to the non-payment of wages, with penalties ranging from 5,000 to 50,000 PLN or restrictions on liberty for employers who fail to pay wages for at least three months. The penalties for existing violations of employee rights are also set to increase significantly, reflecting the government’s commitment to protecting workers’ rights.
As the draft law progresses, it has been referred to the Committee for European Affairs as of April 15, 2025. If approved, it will undergo three readings in the Sejm and consideration by the Senate before reaching the President for final approval. The new regulations, once enacted, will apply for the first time to the determination of the minimum wage and minimum hourly rate for the year 2026.
The implications of these changes are substantial, particularly for employees currently earning below the minimum wage. Many will have to wait until 2028 for potential raises as the phased exclusion of allowances takes effect. The government’s decision to retain the existing structure of the minimum wage calculation has sparked debate about the adequacy of workers’ compensation in Poland and the overall effectiveness of the proposed reforms.
In conclusion, the ongoing discussions surrounding the minimum wage law reflect broader trends in labor rights and economic policy in Poland. As the government navigates these complex issues, the impact on workers and employers alike will be closely watched.
