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Companies may flee to the grey zone. "This is an astronomical increase in the minimum wage"

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From 1 January 2024, the minimum wage will be PLN 4,242, and from 1 July – PLN 4,300. As a result of the changes, the minimum hourly rate from 1 January 2024 will be PLN 27.70, and from 1 July – PLN 28.10.

"This is an astronomical increase in the minimum wage. We expected it to exceed the psychological barrier of PLN 4,000 gross. PLN 4,242, and then PLN 4,300 is a cosmic increase. The government, without consulting entrepreneurs, uses their funds, raising the wage pressure in the SME sector to astronomical heights. The minimum wage cannot be separated from the situation in the economy," says Hanna Mojsiuk, President of the Northern Chamber of Commerce in Szczecin.

Entrepreneurs have no doubt that the increase in the minimum wage will cause a number of complications. The most serious one may be the drastic flattening of wages in companies – the minimum national wage may already be earned by over 30% of all employees. This means that employee competences will not be properly appreciated, because entrepreneurs will not be able to afford to gradually increase the level of wages. Frustrated employees will therefore leave companies, which will block development.

More on this topic is written by @PulsHR

The article was published in @PulsHR:15 June 2023. We invite you to read the full version:» Companies may flee to the grey zone. "This is an astronomical increase in the minimum wage"
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