Employers of Poland have voiced their support for increasing the minimum wage in 2015 to 1731 PLN gross – shows the statement prepared with other business organizations.
We are confident that the minimum wage growth rate in 2015 should be established at a level guaranteed by the Minimum Wage Act, which means an increase from 1680 PLN gross to 1731 PLN gross next year.
Expert of Employers of Poland Jacek Brzozowski reminds that an increase to a level guaranteed by the Act allows entrepreneurs to plan their business activities according to predictable rules. This model is a result of an agreement which assumes that annual minimum wage growth cannot be lower than the expected price index and is also dependent on GDP growth.
– In practice – adds Brzozowski – this means that minimum wage has grown quickly form many years, both in nominal and real terms. Growth is also quicker when it comes to average wages in the national economy. This resulted in a change in the relationship between minimal and average wages from 36 percent in 2002 to 44% in 2013. What is more, in 2013 inflation was very low – 0.9 percent (it is expected to be a little higher this year). All that, as well as the still cautious prognoses for GDP growth, means that a bigger increase in minimum wages would not be economically justifiable.
It is also worth remembering that we are still dealing with a dangerously high unemployment rate. Taking that into consideration, an administratively imposed minimum wage would be a significant burden at a time when economic growth is still recovering after a long period of slowdown. Increasing the minimum wage would also increase related benefits and causes greater wage pressure in companies.