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Family is the best investment

04.06.2019

More than 3.5 years of work of the Ministry of Family, Labour and Social Policy is a period of revolutionary changes in family-oriented activities and a considerable improvement of the situation on the labour market.

Spotkanie

On 16 November 2015, when Elżbieta Rafalska became Minister, the name of the ministry was expanded with a new word: ‘family’. The change of the name determined the direction of work of the entire Ministry of Family, Labour and Social Policy. That was a period of revolutionary changes in activities addressed to family, which was perceived not only through the prism of families with children, but also elderly and disabled persons. The period of the last 3.5 years brought also favourable changes on the labour market, with the lowest unemployment rate since the economic transformation of the early 1990s.

Safe family

In April 2016, the “Family 500+” program was introduced, which radically improved the quality of life and safety of Polish families. By April 2019, the amount of 71.8 billion PLN was spent for this purpose from the state budget. Today, around 3.65 million children until the age of 18 are covered by support from the government program; from 1 July, the program will be extended to all children until the age of 18. The income criterion will be cancelled. This means that the Polish state will support 6.8 million children financially.

It is also thanks to this program that Polish poverty has no longer a child’s face. In 2015-2017, the extreme poverty rate among children decreased almost by half, from 9.0% to 4.7%. More children are born, too. In 2017, the birth rate totalled 1.45 for the entire country, which means 12.4% more than two years earlier. And this happens during the decrease of the number of women of childbearing potential since 2000. The last similar birth rate was recorded in 1997.

The government supported financially the education of children and young people. In 2018, the Good Start program was introduced, under which 4.4 million children received 300 PLN for a school starter kit. Altogether, 1.32 billion PLN were paid out for families.

More and more parents can reconcile the upbringing of children with paid work due to the increasing number of places in day nurseries and children’s clubs thanks to the Maluch+ [Toddler+] program. Only in this edition of the program 27,600 new places for the care of children until the age of 3 will be established in Poland by the end of the year. In 2015, 2,500 places of care were created with Maluch+, i.e., 10 times less than today. Such a good result would not have been possible without increasing the budget of the program. Since last year’s edition, the budget of the program is 450 million PLN, which means three times more funds than in 2017.

In addition, the Large Family Card provides support to families with many children and to parents who have ever brought up three or more children. Around 2.56 million persons hold an active traditional card, which is almost 3 times more than in 2015 (0.87 million), and around 467,500 persons hold an active electronic card. The Large Family Card is a system of discounts and additional privileges for 3+ families both in public institutions and in private companies. Today, 5,500 companies offering discounts in around 23,000 locations co-operate with us.

In 2015, the amount of financial aid for families was 1.78% of GNP; in 2017, it reached 3.11%. The entitlement of all children to benefits under the Family 500+ program will result in an increase of family support expenses from the state budget to the level of around 4% of GNP in 2020, which will put Poland in the forefront of the most pro-family EU states.

Seniors in the centre of attention

Senior support programs help create conditions for active life after the end of professional activity. The Senior+ program involves the expansion of a network of Senior+ Day Homes and Clubs that have an offer of educational, sports and cultural activities dedicated to elderly persons. Thanks to last year’s expansion of the budget of the program to 80 million PLN, 260 new Senior+ homes and clubs were built in 2018, which was twice more than during the previous three years (2015-2017). In the 2019 edition, financial aid was earmarked for further 342 new institutions, and 442 existing institutions received financial aid.

Every year the amount of 40 million PLN is earmarked for the Program for the Social Activity of Elderly Persons. Thanks to this, nearly 450,000 persons, including almost 30,000 disabled persons, benefited from over 1,100 projects in 2016-2018 (in 2019, 300 further projects will be launched).

The government addressed the expectations of Polish society; according to surveys, a majority of citizens did not agree to the raising of the retirement age introduced by the previous government. As of 1 October 2017, the retirement age of 60 years for women and 65 years for men was restored.

Retirement and disability pensions are increased with each successive pay adjustment; special attention is attached to an increase of minimum retirement and disability pensions, which fits into the government’s policy aimed at improving the situation of the poorest groups. As of 2016, the minimum amount of retirement and disability pension rose by 1/4 (from 882.56 PLN to 1,100 PLN).

In May, a one-off cash consideration (i.e., Retirement Pension) was paid to all pensioners in the amount of minimum retirement pension: the gross amount of 1,100 PLN, which means the net amount of 888.25 PLN.

The government supports persons who resigned from paid work, focused on taking care of a number of children and live on the brink of poverty today without being entitled to benefits even on a minimum level. As of 1 March, the Mother 4+ program – a supplementary family benefit in the amount of minimum retirement pension of 1,100 PLN for mothers, but also in some cases fathers who brought up at least 4 children – was introduced. In the state budget for the year 2019, the amount of 801 million PLN was secured for the Mother 4+ program. During the first three months of functioning of the program, around 47,800 persons received the Mother 4+ benefit from the Social Insurance Company (ZUS) and the Agricultural Social Insurance Fund (KRUS).

Under the new Care 75+ program, support will be provided to dependent persons who require special help because of their age or disease. We increase the accessibility of care services. Seniors from small communes – with up to 60,000 inhabitants – may benefit from care services, including specialised care services they were very often deprived of. In the 2018 edition, the program was joined by 396 communes whose services covered the total number of 2,800 persons.

Disabled persons – integration and support every day

The integration of disabled persons is one of the priorities of the Ministry of Family, Labour and Social Policy. The ministry runs a series of programs that support disabled persons and their families in a comprehensive and far-reaching way.

In 2017, the Pro-Life program was launched, with the budget of 3.1 billion PLN planned for the years 2017-2021. The program covers, e.g., the provision of comprehensive care to women and children during pregnancy and after childbirth, the development of a network of supervised apartments, and the development of co-ordination & rehabilitation & care centres. The program involved such actions as the increase of subsidies for a participant of a community self-help centre with multiple disabilities or a spectrum of autism, the introduction of a new health policy program, club activities as a part of occupational therapy workshops or flexible worktime organisation methods, including remote work. In 2017, support for pregnant women covered over 17,700 mothers.

This year the Solidarity Fund for the Support of Disabled Persons (SFWON) was launched for the purpose of providing social, professional and health support to disabled persons. Two programs have already been launched under the fund: care services for disabled persons and a respite care program dedicated to caregivers of disabled persons. The total amount of 647 million PLN will be set aside for ten ministerial and governmental programs.

Benefits for disabled persons and their families are raised every year. In September 2018, social pension rose to the level of the minimum disability pension paid by the Social Insurance Agency (ZUS) for total disability for work. As of March 2019, it is already 1,100 PLN – i.e., 360 PLN more than in 2015, when social pension amounted to 739.58 PLN. This means an increase by around 48%.

‘For the first time in 12 years, the amount of attendance benefit has been increased. As of November 2019, it will amount to 215.84 PLN, which means an increase by around 40% during the rule of the PiS government.

In 2019, carer’s allowance amounts to 1,583 PLN. In 2015, it was 1,200 PLN.

In November 2018, special care benefit and carer’s benefit increased by 100 PLN to the amount of 620 PLN in each case. These benefits have risen for the first time since their introduction.

As of 1 July 2019, the 500+ benefit will be granted without the income criterion, which means that it will be received by each of around 300,000 disabled children until the age of 18.

The availability and the scope of care and assistance for disabled persons is also regularly increased. During the last 4 years, the supplementary funding of the stay of a participant of community self-help centres has risen by around 500 PLN (from 1,268 PLN to 1,752.50 PLN). In 2018, according to preliminary data, the number of community self-help centres rose to 804 institutions, which rendered services to around 33,000 persons. In 2015, there were 760 such institutions (27,800 places). An amendment of the ordinance introducing a new type of community self-help centre for persons with a spectrum of autism or multiple disabilities was prepared.

From 2015 till now, the supplementary funding of costs of a one-year stay of one participant in occupational therapy workshops rose by 3,000 PLN (from 14,796 PLN in 2015 to 17,796 PLN in the current year). In 2020, the amount of financial aid will rise further by 1,200 PLN.

In 2019, the co-financing of an annual stay of one person in a sheltered employment workshop rose from 18,500 PLN to 22,000 PLN – for the first time in 10 years.  According to the Survey of Economic Activity of the Population, the unemployment rate among working-age disabled persons reached an all-time low level (7.2% in 2018). In 2015, this rate was 13%. This means a 45% decrease.

Altogether, the amount of around 19.5 billion PLN was appropriated for the support of disabled children in 2018, which means around 4 billion PLN more than in 2015.

Fair remuneration and safe employment conditions

In booming economy, unemployment has reached an all-time low level. This translates into the better situation of Polish families – not only more people have work, but also they earn more. In particular, the situation of the lowest-earning persons improves.

At the end of April 2019, the registered unemployment rate was 5.6% (GUS); in comparison to April 2015, it dropped almost by one half (11.1%).

The number of unemployed persons registered in labour offices remains below one million, which has seemed impossible until quite recently (938,300 persons in April 2019). For comparison, there were 1,782,000 unemployed persons in April 2015.

The improvement of the situation on the labour market and the decrease of unemployment owes also much to labour offices, which have worked intensively to support employers and persons in need of work on the labour market. For the last 3 years, over 1.3 million persons have become active on the labour market (over 340,000 in 2018).

Not only more people have work, but also they earn more. According to the data of the Central Statistical Office (GUS), the average monthly remuneration in the enterprise sector amounted to 5,186.12 PLN in April 2019, being 7.1% higher y/y. In April 2015, it amounted to 4,123.26 PLN. This means an increase by 1,062 PLN during the last four years.

In particular, the situation of the lowest-earning persons improves. In comparison to the year 2015, the amount of minimum pay rose by 500 PLN, which is an almost 30% increase (1,750 PLN in 2015, 2,250 PLN in 2019). In May 2019, the Ministry of Labour submitted a proposal of minimum remuneration for the year 2020 to the Council of Ministers. The proposed amount was 2,450 PLN, which meant a 200 PLN increase.

Along with the minimum salary, the minimum hourly rate introduced in 2017 increases. This regulation has been introduced in order to limit the phenomenon of excessive use of civil law agreements and to protect persons with lowest earnings. In the first year of its validity, the minimum gross hourly rate was 13 PLN. Today it amounts to 14.70 PLN (the proposal for the year 2020 is 16 PLN).

Another step helping to improve the situation of employees was the liquidation of the syndrome of the first daily rate. The regulation counteracts more effectively the illegal employment of people, i.e., employment without the written confirmation of the conditions of their work.

The provisions discriminating employees in respect of their length of service were abolished, too. Since 2017, all employees have received minimum remuneration in the equal amount, irrespective of their length of service. Previously, the amount of minimum salary depended on the length of service under the applicable law, which was unfavourable mainly for young people, who received at least 80% of minimum pay in the first year of their work.

All of these changes helped to reduce the number of “poor working people”, because the level of remuneration of lowest-earning persons was increased. Persons performing work on the basis of specific civil law agreements have a secured minimum amount of remuneration and its guaranteed annual rise depending on the increase of minimum remuneration for work.

According to the GUS data, the number of persons working only under civil law agreements (mandate contracts, job order contracts and other non-mixed forms of civil law agreements and managerial contracts) dropped from 452,000 in Q4 2016 to 417,000 in Q4 2018.

Salaries in Poland rise higher than prices do, which increases the purchasing power of citizens. Poles need less time to become wealthier and accumulate savings and capital, and this money works for Polish economy.

Information on the publication of the document
Last updated on:
21.06.2019 11:24 Biuro Promocji
First published on:
21.06.2019 11:24 Biuro Promocji
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