Employers of Poland assess that the new minimum wage regulations will have adverse effects on young employees. The new act removes the possibility of paying 80 percent of the minimum wage to employees with less than 1 year of work experience. Therefore, the monthly costs of employing a young employee will increase by 627 PLN, while the cost of older, more experienced ones will only increase by 180 PLN – stressed economic expert of Employers of Poland Łukasz Kozłowski.
He is of the opinion that while the higher minimum wage in contracts of order are intended as impetus for substituting them with contracts of employment, this will most likely not be a widespread phenomenon given that civil contracts are attractive not only owing to labour costs, but also due to their far simpler legal structure and the fact that there are fewer bureaucratic obligations involved.
According to Kozłowski, as these changes are introduced at a time of economic upturn, one should not expect a rapid growth of unemployment. However, unemployment will decrease far slower than it would have if not for the new regulations, and even grow should a period of downturn occur.
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