The key changes in 2020
17.12.2019
2020 will bring important changes for workers and employers. In turn, institutions dealing with professional and social rehabilitation of disabled people will receive more support for their activities.
The minimum wage will increase by PLN 350.00 in 2020. In the next year, it will increase to PLN 2,600.00. This means that the minimum wage will already account for 49.7% of the average wage forecasted for 2020 in the national economy.
- The minimum wage increase will have a positive impact on the financial situation in the households. In comparison to 2015, the minimum wage will increase by PLN 850.00, which is almost half of the increase in the last five years - says Marlena Maląg, Minister of Family, Labour and Social Policy.
Along with the minimum wage, the minimum hourly rate introduced in 2017 for certain civil law contracts will also increase. The main purpose of the minimum hourly rate is to reduce the abuse of civil law contracts and protect the employees with the lowest income. In 2020, the minimum hourly rate will amount to PLN 17.00 - an increase in relation to PLN 14.70 in force this year.
Fair remuneration for seniority
More crucial changes for employers and employees will also be introduced. Beginning on January 1st, the seniority allowance will not affect the minimum wage. New legislation aims to make minimum wages fairer and more transparent and to improve the situation of the lowest paid employees.
- This is a much-needed change for all senior employees, who have been receiving lower basic salary rates in comparison to, for instance, graduates who were just starting out their careers, as the senior employees’ minimum salary would be calculated including the service allowance - says Minister Marlena Maląg. - In the new year, we intend to reinstate the amount of seniority allowance - adds the Minister.
The seniority allowance will therefore not be the first element to be excluded from calculating the minimum wage and which will not affect the level of remuneration. In light of the new law, the minimum wage will no longer be calculated including overtime pay, jubilee award or retirement and disability severance pay. Since 2017, the night work allowance is not included in the minimum wage.
Seven trade Sundays each year
Beginning on 1 January 2020, trade will be permitted only on seven Sundays during the year. The trade ban will therefore not apply on the two Sundays preceding the first day of Christmas, the Sunday immediately before Easter and on the last Sundays of January, April, June and August.
Increased support for persons with disabilities
The new year will also bring important changes in support of persons with disabilities and their carers. The first change is related to increased minimum wage, as serves as the basis for annual valuation of the the attendance benefit. That means that in 2020, the benefit will amount to PLN 1,830.00 net (increase by PLN 247.00 in comparison to PLN 1,583.00 this year). In addition, that also includes social and health insurance contributions, issued from the state budget
The attendance benefit is granted primarily to a parent who resigns from or does not take up employment or other gainful activity in order to provide care for a child born with disabilities.
Since 1 January 2020, the funding for occupational therapy workshops and vocational development centres has also increased. These are two important groups of institutions dealing with social and professional rehabilitation of persons with disabilities.
- Beginning the new year, the financial subsidy for the annual stay of one participant in occupational therapy workshops will amount to PLN 20,496.00. This means an increase of PLN 2,400.00 in comparison to the current rate - says Minister Marlena Maląg, noting that the rate was last increased recently in October this year.
In the case of vocational development centres, the next year's increase will amount to PLN 2,250.00. This means that as of 1 January, the total subsidy for one disabled person's annual stay in such facility will amount to PLN 25,000.00.