Change in the amount of minimum wage starting from 1 July 2023
In accordance with the Regulation of the Council of Ministers of September 13, 2022, on the amount of the minimum wage and the amount of the minimum hourly rate in 2023, as of July 1, the minimum wage increases for the second time this year. This means that anyone hired under an employment contract or order contract - umowa zlecenie (with an hourly rate) will receive a higher salary in comparison with previous months.
The wages paid to employees and contractors may not be lower than those specified in the aforementioned Regulation under penalty of a fine for the employer This regulation sets the minimum wage changes sequentially as follows:
Duration: | Remuneration for full-time work (gross) | hourly rate (gross): |
From 1 January 2023 | PLN 3490.00 | PLN 22.80 |
From 1 July 2023 | PLN 3600.00 | PLN 23.50 |
Hence, employers and contractors can expect to receive higher salaries starting with the payments for July.
What does the increase in minimum wage mean for the employee?
As the minimum wage increases, so do many of the benefits paid to employees. These include, among others:
- Night-time work allowance
Example:
Iwona worked 5 hours at night-time. The working time in July is 21 days, i.e., 168 hours. In accordance with Art. 151 section 8 of the Labour Code, night-time allowance is calculated as follows:
PLN 3600.00 gross / 168 hours = PLN 21.43
PLN 21.43 zł * 20% = 4.29 (this is the gross hourly rate of night-time allowance)
5 hours * PLN 4.29 zł = PLN 21.45 gross of allowance - Sick leave pay
Example:
Urszula has been working under an employment contract since the beginning of January 2023, with a salary of PLN 3490.00. In August 2023, her employer received a sick leave note. The employer is obligated to adopt a rate not lower than the current minimum wage as the basis for Urszula's sick pay. Therefore, the basis for calculating sick pay will be the amount of PLN 3600.00, not PLN 3490.00. - Compensation for violation of the rules of equal treatment in employment
Example:
Dawid’s employer infringed upon his right to equal treatment in employment. As a result, Dawid is entitled to compensation in the amount not lower than the current minimum remuneration for work, i.e., PLN 3600.00 gross.
What does the increase in minimum wage mean for the employer?
For the employer, the increase in minimum wage translates directly into higher costs of employment. Compared to previous minimum wages, the cost of contributions on the employer’s part is as follows:
Amount of minimum wage: | PLN 3010.00 | PLN 3490.00 | PLN 3600.00 |
Type of contributions on the part of the employer | until 31 December 2022 | until 30 June 2023 | from 1 July 2023 |
Retirement Pension (9.76%) | 293.78 | 340.62 | 351.36 |
Disability Pension (6.50%) | 195.65 | 226.85 | 234.00 |
Accident (typically 1.67%) | 50.27 | 58.28 | 60.12 |
Labour Fund (2.45%) | 73.75 | 85.51 | 88.20 |
FGŚP - Guaranteed Employee Benefits Fund (0.10%) | 3.01 | 3.49 | 3.60 |
Total costs on the part of the employer | 616.46 | 714.75 | 737.28 |
The increase in the minimum wage will affect entrepreneurs as well.
Entrepreneurs who currently take advantage of the Social Security (ZUS) relief and preferential contributions will have to take into account an increase in their social security contribution base. The contribution base amounts to 30% of the minimum wage. Thus far, the contribution base amounted to PLN 1047.00 (3490.00 * 30%). Starting from July, this base shall amount to PLN 1080.00 (3600.00 * 30%).
Author: Katarzyna Serwat / Junior HR & Payroll Specialist
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