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Legislation Monitoring Centre
In Poland there is neither an internet portal nor an institution for employers responsible for monitoring the legislation process of regulations that determine the rules for business activity. At present employers  learn about changes in the law mainly from mass media or simply through the grapevine, usually with delay.

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“Rzeczpospolita”: Is this the end of the public sector salary cap?


The saying that the cunning ones lose twice is rarely as fitting as in the case of the public sector salary cap – an imposed restriction of the income of board members of State Treasury and local government companies. The regulation was introduced in good faith but did not pass the test and is now a thing of the past. The question is how what is proposed in its place will work – President of Employers of Poland Andrzej Malinowski writes in “Rzeczpospolita”.


In recent years, the infamous mediocrity criterion the low price criterion has had an impact not only on public tenders, but also on personal decisions in Treasury-owned companies. (…) What did this “saving” actually lead to? To continuously lowering the competitiveness of state companies. To choosing board members according to political sympathies, rather than professional requirements. To the fact that the best managers on the market avoid state-owned companies, not only due to lower wages, but also because those who work there are said not to have made it in the private sector  he remarks.


Therefore, the public sector salary cap must be done way with! The solutions proposed by Minister of Treasury Dawid Jackiewicz are a cause for optimism, particularly those that resemble market mechanisms. Dynamically established salaries, salaries dependent on the size and potential of the company, as well as – crucially – on the realization of plans and on results. We really should draw inspiration from the lessons of thousands of years of management. Namely, on the principle stating that the one who works harder, is more intelligent and creative earns more, in turn motivating people to develop these characteristics emphasizes the President of Employers of Poland.


However, he also mentions objections to the  draft of the act. Restrictions on managers’ salaries have been maintained, although they are more flexible. Part of the salary will still depend on the realization of management objectives – and if they cannot be precisely outlined than the related salary will also be partly a question of taste. Moreover, the draft was sent directly to the Council of Ministers – with no consultations or negotiations.


Why the haste? Is there some small print on the draft, something noticeable only after thorough inspection? The Minister of Treasury who introduces his ideas in such a manner has to be prepared for questions like that  concludes Malinowski.