On 23 July 2021, a draft regulation containing a proposal to increase the minimum wage for 2022 was published. As a result, the minimum salary a full-time employee will receive from 1 January 2002 will amount to PLN 3,000 (approx. EUR 660), which means an increase of PLN 200 (7.1%) in relation to the amount currently in force. The minimum monthly wage is set in gross amount.
If the employment contract provides for a lower wage, the minimum wage will apply by law. Payment of wages below the minimum wage is a violation of employment rights and may be subject to fines.
At the same time, the minimum hourly rate for persons performing tasks under certain civil law contracts in 2022 will be PLN 19.60 gross, i.e. PLN 1.30 more than this year.
What remuneration elements are included in the minimum wage?
The minimum wage is not only the base salary. The amount constituting the minimum wage also includes e.g. bonuses and holiday pay. On the other hand, the minimum wage does not include for example jubilee awards, severance paid in case of retirement, remuneration for overtime work, a bonus for night work or a seniority bonus. This means that if an employee becomes entitled to e.g. a jubilee award, he/she should receive it on top of the regular salary.
What does the minimum wage affect?
The effect of an increase in the minimum wage is not only a higher salary for employees. The higher monthly minimum wage affects other benefits under the employment relationship, the amount of which depends on the amount of the minimum wage, e.g. the night shift allowance. The same applies to the minimum compensation granted in case of discrimination. There will also be an increase in the statutory cap on the amount of the statutory severance pay (from PLN 42,000 to PLN 45,000). The higher amount will also be the basis for calculating social insurance contributions and personal income tax.
The government estimates that around 2.2 million employees earning the lowest pay will benefit from the new regulations. They will see an increase in their income and social security benefits as a result of higher contributions to the pension and sickness insurance. On the other hand, the increase in the minimum wage means an increase in total labour costs for as many as 2.5 million employers, employing under employment contracts or mandate agreements. For employers, the increase in the minimum wage may also mean pressure on salary increases among groups of employees earning little more than the minimum wage.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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