Prime Minister: The Polish Deal is a common denominator for employees and entrepreneurs
29.07.2021
The Polish Deal is the government's response to the crisis caused by the COVID-19 pandemic, but it is also a great investment impulse for the next decades. Prime Minister Mateusz Morawiecki visited the Małopolskie Voivodeship. During his visit to the Wiśniowski company, Mr Morawiecki spoke about new solutions - such as a higher tax-free amount for everyone, as well as increasing the income tax threshold for the first time in 12 years. The Prime Minister stressed that as the Polish Deal is introduced, Poland’s economy enters a phase of intense development. “The Polish Deal is a proposal for Polish workers and entrepreneurs that we should sail together on the boat that is the Polish economy and achieve the highest speed possible”, he added.
The Polish Deal – a programme for employees and entrepreneurs
The Polish Deal is a programme that will benefit both entrepreneurs and employees. “A company such as Wiśniowski, here near Nowy Sącz, combines resourcefulness and diligence on the one hand but also extensive experience of employees on the other. This is precisely the ‘win-win’ philosophy that exists between entrepreneurs and employees. This is the Polish Deal’s philosophy”, said the Prime Minister.
Among the programme’s key aspects are tax changes. Increasing the tax-free amount to PLN 30,000 for everyone results in no tax for employees on a minimum wage. This also means lower taxes for low- and middle-income individuals. As a result of this change, Poland’s tax-free amount will be at a similar level as in Germany, France and Ireland. “Apart from that – the first increase in the income tax threshold in several years – from 85,000 to 125,000 złotys”, announced Prime Minister Morawiecki.
The Polish Deal is also a multi-billion złoty demand impulse that will benefit Polish companies. “The Polish Deal includes numerous solutions for entrepreneurs. We will discuss them in the coming weeks. I want to extend the consultation period – to five weeks – to allow everyone to calmly make their case”, Mr Morawiecki remarked.
Budget surplus and one of the lowest unemployment rates in the EU
Having restored the health of its public finances, Poland recorded a budget surplus of more than PLN 25 billion by mid-2021. Importantly, in June 2021, the average employment in the enterprise sector was 2.8% higher year-on-year and amounted to 6359.3 thousand. On the other hand, the average monthly salary was higher by 9.8% year-on-year and amounted to PLN 5,802.42 (gross).
According to Eurostat, Poland has one of the lowest unemployment rates in the European Union. The low unemployment rate is due to the government's rapid response to the COVID-19 outbreak and the launch of aid programmes for Polish companies. Thanks to the funding received by Polish enterprises, the government support covered nearly 8.2 million jobs.
