Employers and unions are readying themselves to fight over the minimum wage, Economists warn – and excessive raise will harm the labour market.
The current minimum wage is 1750 PLN, which is over 40 percent of the average wage in the country. Predictions made by the Ministry of Finance show that the prognosed GDP growth for 2016 is 3.8 percent and the prognosed inflation is 1.7 percent, so the corrected minimum wage should be increased by 4.233333 percent. Thus, the final value of minimum wage is 1781.33, or 1782 PLN after rounding up. This means that employers would have to pay all employees on a minimum wage 32 PLN more than this year.
Formally, the final value of the minimum wage is negotiated in the Tripartite Commission for Socioeconomic Affairs and the value calculated above is only its lower limit. — In practice, however, this decision is usually made independently by the government, without taking the opinions of social partners into account. In our opinion, the minimum wage should not be higher than the minimum value — says Łukasz Kozłowski, expert of Employers of Poland.