Minimum salary from July 2024

What will be the minimum salary in July 2024? Who will be covered by the minimum salary and who will receive the minimum hourly wage? Data from the Central Statistical Office (CSO) and the Social Insurance Institution (ZUS) show that about 3.6 million people in Poland will receive minimum wages in 2024. We will soon know the amount of the minimum salary for 2025!

Minimum salary and minimum hourly salary in 2024

What is the minimum salary?
What is the minimum hourly rate?
What will be the minimum salary from July 2024?

What will be the minimum salary from July 2024?

Minimum salary and minimum hourly rate in 2024 By Article 2(5) of the Law of October 10, 2002, on the minimum salary (Journal of Laws of 2020, item 2207), the Council of Ministers issued a decree of September 14, 2023, on the minimum salary and minimum hourly rate for 2024 (Journal of Laws 2023, item 1893).

According to this executive act:

as of January 1, 2024, the minimum salary is PLN 4242.
From January 1, 2024, the minimum hourly rate is PLN 27.70.
As of July 1, 2024, the minimum salary is PLN 4300.
As of July 1, 2024, the minimum hourly rate is PLN 28.10.

So in 2024, there will be an increase in salary after the middle of the year. Data from the Central Statistical Office and the Social Insurance Institution show that about 3.6 million people in Poland will receive a minimum salary in 2024.

What is the minimum salary ?

The minimum salary is the minimum amount that an employee receives for his work under a contract of employment, appointment, appointment, election or cooperative employment contract. An employee has the right to a fair salary by the general rules. These conditions are determined by labour laws and state policies on wages, including the setting of the minimum salary. However, in the current reality, the minimum salary is not always fair.

What is the minimum hourly salary?

The minimum hourly salary is the lowest hourly salary accepted for the performance of an assignment or provision of services. It applies to those who perform orders or provide services, not to employees employed under a contract of employment or a work contract. It is relevant for commissioned contracts and B2B contracts, where services are provided between two businesses.

Minimum salary from July 2024 – what will the rates be?

As of July 1, 2024, the minimum salary will increase to PLN 4,300 gross. This is PLN 700 more than in July 2023 (PLN 3600), an increase of 19.4%.

Minimum hourly salary from July 2024 – what will the rates be?

As of July 1, 2024, the minimum hourly rate will increase to PLN 28.10 gross. This is PLN 4.6 more than in July 2023, an increase of 19.5%.

What will be the effects of the salary increase?

The increase in the minimum salary from July 1, 2024, will affect other benefits, including:

• Night work allowance
• Standby and downtime pay
• Deduction-free minimum salary amount for full-time employees
• The amount of contributions to Employee Capital Plans
• Sick pay
• Compensation for an employee experiencing harassment or being terminated for that reason should be at least the minimum salary
• Increase in the cost of hiring an employee for the employer in the second half of 2024.
• The maximum amount of severance pay in connection with the termination of an employment contract without fault of the employee is 15 times the minimum salary.

Summary

Increases in the minimum salary starting July 2024 have a significant impact on our accounting practice and our clients. The increase in the minimum salary and hourly rate means we need to make changes to our accounting systems to reflect these new regulations. We need to be prepared for the financial implications these changes may have for our clients, including adjusting payroll budgets and tax settlements. At the same time, as an accounting firm, it is our job to provide support and advice to our clients on the new payroll regulations and to help them adapt appropriately to these changes. Our goal is to ensure that our accounting services continue to serve as a tool to effectively manage our clients’ finances in a changing business environment.