The government has adopted a draft regulation which introduces two increases in the minimum wage in 2023. The increase of the minimum wage in January and July will also entail the increase of premiums and liabilities of entrepreneurs.
In response to the inflation and consequently to the increasing prices of goods and services, the government has announced a double increase of the minimum wage in Poland in 2023. According to current information, the first rise in June will increase the minimum wage to PLN 3 490 gross and the second one in July to PLN 3 600 gross. In total, the minimum wage will increase by PLN 590 gross comparing to 2022.
As a result, the minimum hourly rate will increase as its amount is linked with the minimum wage. In January it will amount to PLN 22,80 per hour and from July - PLN 23,50.
Changes in the minimum wage and the minimum hourly rate in comparison with 2022.
| |
2022 |
January 2023 |
July 2023 |
| Minimum wage |
PLN 3010 |
PLN 3490 |
PLN 3600 |
| Minimum hourly rate |
PLN 19,70 |
PLN 22,80 |
PLN 23,50 |
The increase in the minimum wage primarily results in a higher health premium for entrepreneurs. The basis for the calculation of social contributions is 30% of the amount of minimum wage and in this year, it amounts to PLN 903. In July 2023 the same contributions will amount to PLN 1080. What is more, taxpayers who chose the flat-rate method will pay the health premium according to the flat rate on revenues of the preceding month; however, it cannot be lower than 9% of the minimum wage. That means that, even if there is a loss, the entrepreneur will have to pay the minimum health premium which will amount to PLN 324 from July 2023, comparing to PLN 270,9 of this year.
The increased minimum wage in 2023 will also entail an increase in other contributions for employees, e.g., night work allowance, downtime allowance, maximum amount of severance package or minimum amount of the compensation for discrimination or workplace harassment.