Poland’s Cabinet has agreed to raise the minimum wage to PLN 2,100 (EUR 493) gross each month as of next year, up by PLN 100, the Prime Minister’s Chancellery said on Tuesday. The five percent pay hike will raise the gross hourly rate from PLN 13 to PLN 13.7.
The government in June suggested raising the minimum monthly wage in 2018 to PLN 2,080 and the hourly rate to PLN 13.5.
But trade unions called for the minimum monthly wage to be pushed up to PLN 2,220, while employers suggested PLN 2,050.
Poland’s family, labour and social policy ministry said the wage rise proposed on Tuesday was “measured” and took into account Poland’s good economic situation.
It is expected to increase budget spending by PLN 164 million next year, but “the financial effects will be lower in real terms because some of that spending will come back to the state budget in the way of personal income tax,” the labour ministry said.
The ministry added that families are set to earn PLN 1.1 billion more income next year.
According to Poland’s Central Statistical Office, some 1.4 million people were paid at the minimum rate in 2017.
Since coming to power in October 2015 elections, Poland’s ruling conservatives have raised the minimum wage once already, by 8.1 percent from PLN 1,850 on 1 January.