Minimum wage 2025. PIH: the increase in the minimum wage will be a burden that SME entrepreneurs will not be able to bear

“The Polish Chamber of Commerce, the broadest representation of trade in Poland, associating approximately 30,000 stores run by micro, small and medium-sized entrepreneurs, once again points out that the increase in the minimum wage from 1 January 2025 will be a burden that SME entrepreneurs will not be able to bear,” the Polish Chamber of Commerce pointed out in a statement on Thursday.

“We appeal not to make decisions that will be detrimental to small and medium-sized enterprises and, consequently, to the detriment of the Polish economy,” she stressed. As indicated, this refers to reports on the verification of the proposed minimum wage in 2025 by the Ministry of Family, Labor and Social Policy, related to the higher than previously assumed forecast rate. Inflation next year. The minimum wage from 1 January 2025 is planned to amount to PLN 4,626. This means an increase of PLN 326 compared to the amount applicable from 1 July 2024 (PLN 4,300), or 7.6 percent. “Such significant increases in employee costs will affect the financial situation of every company,” claims PIH. “Raising the minimum wage will, above all, make the Polish economy unattractive to investors – due to very high labor costs. In addition, this change will provide a strong pro-inflationary impulse,” the Chamber noted.

Maciej Ptaszyński, the president of PIH, quoted in the press release, pointed out that “when it comes to micro and SMEs, especially in trade, this will be devastating for thousands of retail outlets that are already operating on the threshold of profitability”. He added that “wages are the largest cost item in every enterprise. In the case of trade, overloaded with the competition with discount stores and numerous costs related to running a business (such as the implementation of the deposit system), this will undoubtedly be a factor leading to the liquidation of thousands of stores, which will ultimately only strengthen the position of foreign discount stores. In turn, it should be expected that large chains will pass on the costs incurred to Polish producers and consumers”. The Chamber emphasized in the press release that it is seeking a meeting with government representatives on this matter.

The Polish Chamber of Commerce is the largest retail representation in Poland. It brings together over 30,000 Polish stores, food and drugstore wholesalers, and service companies.