The Polish Central Bank expects wages to increase by 12.8 per cent year on year in 2023, by 9.3 percent year on year in 2024, and by 6.8 percent in 2025.
The inflation report published on Friday showed that, following a fall in inflation, nominal wage fluctuation will also drop in comparison to the current double-digit growth.
“The passage of wage growth into consumption will be boosted in 2024 by a big increase in the minimum wage, strongly improving the income of households with a relatively higher marginal propensity to consume,” the bank reported.
But there will be a reduction on wage-growth pressures, as revealed by a Central Bank Quick Monitoring survey.
“Wage pressures over the projection horizon will also be mitigated by the assumed growing presence of migrants from Ukraine and other countries on the Polish labour market and the projected increase in the unemployment rate,” the report added.