19 September 2023

Minimum wage in Poland in 2024

Traditionally, we face an increase in the minimum wage and a new minimum hourly rate for certain contracts at the beginning of 2024. The Council of Ministers approved the regulation on the new amounts in 2024 on September 14th of this year.

This is information that is certainly important for every entrepreneur, as the increase in the amount directly affects their costs. Exactly how much will the net salary be in 2024?

New rates – minimum wage

In Poland, the minimum wage is set by the Council of Ministers on the proposal of the Ministry of Family, Labor, and Social Policy. The rate applicable in a given year is determined based on consultations with social partners, i.e. employers’ organizations and trade unions. This has a social dimension and ensures that the rates do not just come from purely analytical calculations by government economists.

In 2024, the amounts will be raised twice, in January and July, at a level exceeding 20% compared to 2023, a record increase, as in the current year.

Changes from January 1st, 2024:

the lowest salary will be 4,242 PLN gross;
the minimum hourly rate for civil law contracts will be 27.70 PLN gross.

Changes from July 1st, 2024:

the lowest salary will be 4,300 PLN gross;
the minimum hourly rate for civil law contracts will be 28.10 PLN gross.

Thus, in 2024 the minimum wage will be increased by 2,550 PLN compared to the level in effect in 2015, an increase of 146 percentage points.

Growth rate in recent years

As of January 1st, 2024, the minimum wage of 4,242 PLN represents an increase of 752 PLN compared to the amount in effect on January 1st, 2023, or 21.5 percent. Moreover, from July 1st, 2024, the increase in the minimum wage to 4,300 PLN means an increase of 700 PLN compared to the rate in effect on July 1st, 2023, an increase of 19.4 percent.

As for the minimum hourly rate for certain civil law contracts, from January 1st, 2024, there will be an increase of 4.90 PLN compared to the previous year, a change of 21.5 percent. In addition, the minimum hourly rate will increase by 4.60 PLN compared to the amount on July 1st, 2023, an increase of 19.5 percent.

Minimum wage as a tool to reduce income inequality

According to data available on the Government’s official website, it is projected that about 3.6 million people will be covered by an increase in the minimum wage. This is a step toward flattening the wage structure and reducing the earnings gap.