24.3 C
Monday, August 15, 2022

Polish order and inflation versus salaries of Poles. Who will benefit, who will lose?

Must read

- Advertisement -

The Polish Deal is beginning to resemble another component of the anti-inflationary shield more and more than the afterburner for people with lower incomes, which it was supposed to be – writes “Dziennik Gazeta Prawna” on Monday. People with minimum wages are to benefit the most from tax solutions. Some of the profits, however, will be eaten up by the rapid rise in prices.

– Somewhat involuntarily, the Polish Order has become a mechanism that will ensure that low-income households will increase their real wages. If the Polish Deal had not existed, high inflation would have consumed a significant part of the wage increase, notes the chief economist of Credit Agricole, Jakub Borowski, in an interview with the daily newspaper.

Polish Order and Inflation and Wages

As “Dziennik Gazeta Prawna” writes, this mechanism is best seen on the example of employees earning the minimum wage.

“The government picked up minimum wage from 2,800 to 3,010 PLN gross (net is less than 2,210 PLN). Were it not for the Polish Deal, the salary increase would be 5%, which is less than the estimated inflation in the coming months (6-7%). After the entry into force of the Polish Order, it will be a 15% increase, which, however, must also be adjusted for inflation in real terms. But this group will be in a privileged position, because in the case of the rest of employees, the increases in net wages resulting from the Polish Deal are much lower “- writes the daily.

- Advertisement -

The article points out that, for example, a person with a salary of PLN 4,000 per hand as a result of the introduction of the Polish Order, the nominal salary will increase by 4%. services).

“People with the best earnings will be in an even less favorable position, because the Polish Deal was supposed to weigh them down more, inflation would add to its own, so in real terms they will be at least a few percent negative. For example, people with a net salary of PLN 15,000 will earn nearly PLN 300 less. per month, which in practice means almost 3% lower remuneration, and if the inflation index is added to it, their real loss will be large “- emphasizes” DGP “.


Inflation in Poland. GUS data

The latest GUS data show that inflation in Poland in October it grew by 6.8 percent year on year. This is the highest level of inflation since 2001.

Inflation in PolandPAP / Maciej ZieliƄski

On Tuesday, the Central Statistical Office will publish its preliminary CPI inflation estimate for November. The market consensus assumes that the current trend will continue and the pace of price growth will accelerate again. According to economists, consumer prices in November increased by 7.3 percent. Every year.

Dziennik Gazeta Prawna, PAP

Main photo source: Shutterstock

Source link

More articles

- Advertisement -

Latest article