The cabinet proposed to raise the country’s minimum wage by 7 percent from next year, to PLN 3,000 from PLN 2,800 (to EUR 663 from EUR 618) on Tuesday.
The minimum hourly wage will be raised to PLN 19.60 from PLN 18.30 (to EUR 4.33 from EUR 4.04).
However, the bulk of the nominal rise in wages might be offset by Poland's high inflation, which is now around 5 percent, while still being a challenge for a number of sectors which have not yet recovered from the coronavirus crisis.
The development minister will now present the government’s proposal to the Council for Social Dialogue (RDS), a tripartite body comprising the government, employers and trade unions. The negotiations should conclude within 30 days from the day on which the Council receives the proposal. If the RDS fails to outline the minimum wage in 30 days’ time, the decision will be made by the ministry. However, the amount agreed on by the cabinet cannot be lower than those proposed by the RDS in the midst of the negotiations.
The minimal wage is specified each year. Each year and before June 15, the cabinet provides the RDS with a proposal of the minimum wage for the upcoming year.