Most recent Eurostat figures clearly show that the non-wage labor costs growth rate in Poland is almost the fastest in the EU. – It is one of the most pressing issues of our economy as it stunts our economic growth - comments expert of Employers of Poland Lukasz Kozłowski
In the first quarter of 2014 the costs for employers have increased by 6.7 percent compared to an analogous period last year. The only EU country where this index was higher was Bulgaria (7.5 percent).
Another cause for worry is the fact that the rate at which minimum wage increases is faster than the growth rate of actual wages (3.6 percent year to year in this period). In Germany wages increased by 2.3 percent, while non-wage labor costs decreased by 3.0 percent. This means that the cost competitiveness of Polish economy in relation to developed economies is diminishing and the state uses more of the fruits of economic growth than employers do.
It is worthwhile to use the ex ample of an employee with average wages to illustrate the scope of the problem. The median wage in our country is 3115 PLN gross. An employee who earns that sum gets 2237 PLN net. However, the difference between the two values is not the entirety of non-wage labor costs, as employers have to pay some of their employees’ premiums themselves. The total labor cost is 3761 PLN, of which the employee actually gets only 59 percent.
Łukasz Kozłowski, expert of Employers of Poland