In accordance with the proposal of the Council of Ministers , the minimum wage would increase by PLN 200 in comparison to the remuneration applicable this year (PLN 2.600,00). That means an increase by 7.7%.

In relation to the average remuneration in national economy in 2021 (PLN 5,259.00), the minimum wage would amount to 53.2%.

The increase of the minimum wage will also mean an increase of the hourly wage for specific civil law contracts. In accordance with the proposal submitted by the Council of Ministers, the hourly rate in 2021 would increase from PLN 17.00 to PLN 18.30, i.e. by PLN 1.30.

Time for Negotiations

Pursuant to the Minimum Wage Act, the Council of Ministers is obliged to submit a proposal of the minimum wage and a proposal of the minimum hourly wage for the next year to the Social Dialogue Council.

Due to the change in the schedule of works on the state budget for 2021 caused by the epidemiological situation, certain terms of the works related to setting the minimum wage for 2021 have also changed. The Special Act has changed the submission date of the aforementioned propositions by the Council of Ministers to the Social Dialogue Council for negotiations from June 15th to July 31st of 2020.

After receiving the Government’s proposition, the social partners have 10 days (the term was set for 30 days prior to the change) for negotiating and agreeing upon the minimum wage and the minimum hourly rate.

In the event that the social partner organisations reach an agreement, the amounts of minimum wage are announced by the Chairman of the Council of Ministers. If the Social Dialogue Council is unable to reach an agreement, the Council of Ministers issues an order defining the amounts of minimum wage for work and the minimum hourly wage until September 15th.

The System of Indicators

The amount of minimum wage and the minimum hourly rate are determined based on the current and the anticipated macroeconomic factors (accepted upon developing the next year’s budget), including for instance the following indicators anticipated for the next year: the retail prices index and the growth of real GDP. The detailed system for calculating the minimum wage and the minimum hourly wage is defined by the act.