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Minimum wage in 2024. The Social Dialogue Council has not developed a common position

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The Social Dialogue Council has not developed a common position on the proposed minimum wage in 2024. This means that the government has until September 15 to make a final decision on this matter.

At the plenary session of the Social Dialogue Council, a debate was held, i.a. on the proposal to increase the minimum wage for work and minimum hourly rate in 2024

Minimum wage in 2024 – government proposal

According to the government’s proposal, next year, as in 2023, two increases in the minimum wage are planned. The government wants the lowest salary to be PLN 4,242 from January and to increase to PLN 4,300 gross from July. The minimum hourly rate, the amount of which is related to the increase in the minimum wage, is to amount to PLN 27.70 from January 2024, and PLN 28.10 from July.

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The Minister of Family and Social Policy Marlena Maląg reminded that double valorisation minimum wage comes from high inflation exceeding 105 percent. She also explained what the amount given by the government was based on.

– We calculated the minimum wage proposal for 2024 based on the amount (minimum wage) from July, i.e. PLN 3,600. When calculating this amount, we automatically took into account the minimum wage for 2023, the verification indicator, because the inflation planned in the Budget Act and the actual inflation for 2023 differed. We also took into account the projected inflation for 2024, planned in the budget projection, Maląg pointed out.

She stated that according to government estimates, over 3.6 million people will benefit from next year’s indexation, and its cost to employers will amount to PLN 35 billion. – What will affect household budgets is over PLN 21 billion – added the minister.

– If we look at the relationship of the minimum wage we propose to the average wage, then from January it will be 54.4 percent, and from July 55.2 percent – informed the head of the Ministry of Labor and Social Policy.

The minimum wage and the social side

The Social Dialogue Council has until July 14 to develop a common position on the minimum wage increase. Despite extensive discussions, the social side failed to reach an agreement.

“Solidarity” proposes that the minimum wage be increased to PLN 4,100 from January and to PLN 4,350 from July. In turn, the Trade Unions Forum and the National Trade Unions Alliance advocate that this amount should amount to PLN 4,300 from January, and at least PLN 4,540 from July.

Trade unions argued that inflation, despite a downward trend, remained high and product prices remained high.

In turn, employers opted for an increase in the minimum wage at the minimum level, resulting from the applicable indicators. According to the calculations of the Federation of Polish Entrepreneurs (FPP), the statutory minimum wage required next year will be PLN 4,254.40, and the minimum hourly rate will be PLN 27.80.

The representatives of the employers pointed out that the increase proposed by the government would primarily affect local enterprises in smaller towns. They called for “more realistic conditions for growth.” They pointed out that in addition to the already significant increase in salaries, employers have to deal with the increase in the cost of products – fuels and energy.

During the debate, the postulate to develop a new mechanism for raising the minimum wage appeared again.

Pursuant to the regulations, if RDS fails to agree on the amount of the minimum wage and the hourly rate within the statutory period, then it determines these amounts the Council of Ministers by regulation until September 15 this year. However, the amount of the minimum remuneration for work, as well as the amount of the minimum hourly rate set by the Council of Ministers, may not be lower than those previously presented to the Social Dialogue Council for negotiations.

PAP/Adam Ziemienowicz

Minimum wage in 2023

From July 1 the minimum remuneration for work is PLN 3,600 grossand the hourly rate up to PLN 23.50. This was the second increase in the minimum wage this year.

Since July, along with the minimum wage, other benefits calculated on its basis have also increased, including night work allowanceremuneration for downtime, severance pay for collective redundancies.

Read also: Contributions, allowances and penalties upwards

Main photo source: Grand Warsaw/Shutterstock



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