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Minimum wage: good news for 2.2 million Poles

Minimum wage: good news for 2.2 million Poles

“Over the past eight years, the minimum wage has increased by about 67 percent. Meanwhile, the average wage has increased by about 47 percent. Now the minimum wage will rise by 7.5 percent and the average wage by about 1 percent We will compare the data from The last quarter of 2020 to the second quarter of 2021. It should be noted that the ratio of the minimum wage to the average wage is constantly increasing, in 2003 it was about 36 percent, while in 2021 it will certainly exceed 50 percent. – wrote in the commentary Piotr Juszczyk, tax advisor at inFakt.

“At the same time, the number of employees who receive salaries at the minimum wage level is also increasing. According to government data, in December 2019 there were about 1.5 million such people, and now it is 2.2 million. The annual adjustment of the minimum wage is considered an idea Good. However, it must be remembered that along with its increase, labor costs increase, which may directly translate into product prices and higher inflation. Combined with the current trend, this may cause an acceleration of inflation in the next year,” the expert noted.

“Besides the increase in the minimum wage, the costs of the employer also increase due to the employment of employees. The minimum wage, which this year is PLN 2,800, is the total cost to the employer of about PLN 3,370. After the increase from next year, the total cost will reach PLN 3,370 About 3620. It also depends on the amount of the accident premium. The result of the increase in costs may be, among other things, the expansion of the shadow economy – some employees may be employed illegally ”- Juszczyk added.

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