The minimum salary in 2023 has increased since January 1st. This is not the end of the increases. The next one will take place on July 1st. This is undoubtedly great news for employees. For employers, however, it means an increase in costs. How much will the minimum wage be? We present in the article below.
Table of Contents
- Minimum salary in 2023 – basic information
- Minimum salary in 2023 – an increase from the 1st of January
- Minimum salary in 2023 – a further increase from the 1st of July
- Minimum salary in 2023 – employer’s costs
- Minimum salary in 2023 – part-time work
- Minimum salary in 2023 – a minimum hourly rate
Minimum salary in 2023 – basic information
The minimum salary in Poland is the established lowest remuneration that an employer must pay to an employee. This concerns people hired under an employment contract. A salary below the minimum rate is a violation of employees’ rights. The provisions of the labour code regulate this issue. The Act states that a person who unjustifiably reduces the remuneration for work or other benefits due to an employee is subject to a fine. It ranges from 1000 to 30,000 PLN.
The Social Dialogue Council decides about the amount of the minimum salary in Poland. If it doesn’t agree on its amount within the statutory deadline, the Council of Ministers makes the decision by way of regulation. The government must announce the minimum salary by the 15th of September of each year.
Establishing if remuneration is at least equal to the minimum salary requires certain calculations. The salary components and other benefits due to an employee are taken into account. All benefits resulting from the employment relationship must be considered.
The components of salary include:
- basic remuneration,
- bonuses and statutory and discretionary awards,
- allowances, for example for specific working conditions or managerial functions,
- remuneration for holiday leave or training leave,
- remuneration for the period of incapacity for work due to illness,
- remuneration for the period of downtime not caused by the employee
However, the following components are not taken into account:
- service anniversary award,
- severance payment due to an employee in connection with old-age pension or disability pension,
- remuneration for overtime work,
- bonus remuneration for night work,
- seniority allowance
Minimum salary in 2023 – an increase from the 1st of January
The minimum salary plays a significant role in reducing income inequality. Moreover, it protects employees from working below established rates. According to the government’s decision, at the beginning of 2023, the minimum salary in Poland increased to 3490 PLN gross. This is 480.00 PLN more than in the previous year.
To calculate the net value of the minimum salary, certain contributions must be subtracted from the gross amount. Among them, there are social security contributions, health insurance contributions, and advance payments for PIT. The minimum net salary also depends on other factors, e.g. working outside the place of residence.
|Contributions||Minimum salary for the period from 1 January to the end of June 2023 (3 490 PLN gross)|
|Old-age pension||340,62 PLN|
|Disability pension||52,35 PLN|
|Sickness insurance||85,51 PLN|
|Health insurance||271,04 PLN|
|Advance payment for PIT||31,00 PLN|
|minimum net salary||2709,48 PLN|
Minimum salary in 2023 – a further increase from the 1st of July
This is not the end of changes in the minimum salary in Poland in 2023. As of the 1st of July 2023, the minimum salary will increase to 3 600 PLN gross. This means an increase by 590.00 PLN compared to the previous year. What will be the net value of the minimum salary as of the 1st of July 2023?
|Contribution||Minimum salary for the period from the 1st of July 2023 (3 600,00 PLN gross)|
|Old-age pension||351,36 PLN|
|Disability pension||54,00 PLN|
|Sickness insurance||88,20 PLN|
|Health insurance||279,58 PLN|
|Advance payment for PIT||43,00 PLN|
|Minimum net salary||2783,86 PLN|
Minimum salary in 2023 – employer’s costs
The increase in the minimum salary in Poland in 2023 is a good news for employees. However, for employers it means an increase in their costs. Gross salaries are not the only cost borne by employers. They are also responsible for social security contributions, contributions to the Labor Fund, and the Guaranteed Employment Benefits Fund.
|Employer’s costs||from 1st January 2023||Od 1st July 2023|
|Gross remuneration||3.490,00 PLN||3.600,00 PLN|
|Employer’s social security contributions||625,75 PLN||645,48 PLN|
|Old-age pension||340,62 PLN||351,36 PLN|
|Disability pension||226,85 PLN||234,00 PLN|
|Accident insurance contribution||58,28 PLN||60,12 PLN|
|Contribution to the Labor Fund||85,51 PLN||88,20 PLN|
|Contribution to the Guaranteed Employee Benefits Fund||3,49 PLN||3,60 PLN|
|Total costs||4204,75 PLN||4337,28 PLN|
Minimum salary in 2023 – part-time work
As a rule, the minimum salary in Poland concerns full-time employees. In the case of part-time work, the salary is determined proportionally. It is based on the number of hours worked in a given month.
|Work time||Full time||3/4 FTE*||1/2 FTE||1/3 FTE||1/4 FTE|
|From the 1st of January 2023 (gross)||3490,00 PLN||2617,50 PLN||1745,00 PLN||1163,33 PLN||872,50 PLN|
|From the 1st of July 2023 (gross)||3600,00 PLN||2700,00 PLN||1800,00 PLN||1200,00 PLN||900,00 PLN|
*FTE = Full Time Equivalent
Minimum salary in 2023 – a minimum hourly rate
The regulations concerning minimum salary in Poland do not concern civil law agreements. Since 2017, both individuals employed under a contract of mandate and those providing services as part of their own business activities are subject to the minimum hourly rate. The hourly rate, like the minimum salary in Poland, is not a fixed amount and changes every year. The minimum hourly rate from the 1st of January 2023 is 22.80 PLN gross. From the 1st of July 2023, it will increase further to 23.50 PLN gross.
The double increase of the minimum salary in Poland in 2023 is the result of high inflation. According to regulations, if the projected inflation rate for the following year is at least 5%, then there are two dates set for changing the amount of the national minimum salary and the minimum hourly rate. The projected rate for 2023 is 10%. The increase in the minimum salary in 2023 will result in an increase by 590.00 PLN gross compared to the previous year. In turn, the hourly rate will increase by 3.80 PLN gross, up to 23.50 PLN gross.
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