In the article, we will discuss the issue of the minimum wage, which is the lowest amount that an employer is obliged to pay to employees employed under an employment contract or mandate contract. We will focus on the case of Poland, where the minimum wage has been raised twice since July 1, 2023. Let’s find out what are the current minimum rates and what are the costs associated with hiring an employee. We will also look at the difference between gross and net salary, and what factors affect the final amount that the employee receives in his account. We invite you to read!
What is the minimum wage?
The minimum wage is the lowest amount established by law that the employer is obliged to pay to an employee performing work under an employment or mandate contract. It serves as a basic guarantee to protect employees against exploitation by their employers.
Minimum wage from July 1, 2023
As of July 1, 2023, the minimum wage in Poland increased twice. The new minimum wage is PLN 3,600 gross per month, and the minimum gross hourly rate is set at PLN 23.50.
Gross vs. net salary
It’s important to note that the amounts mentioned above are gross figures. Most employees are primarily interested in the net amount they will receive, which reflects the actual earnings credited to their accounts after deductions. From July 1, 2023, the net amount for the minimum wage will be approximately PLN 2,800, with a net hourly rate of around PLN 20.
It is essential for employees to consider various factors that can influence their net wage, such as submitting a PIT-2 statement at their workplace and working outside their place of residence.
To calculate the precise net amount of the minimum wage in 2023, individuals can use free net-gross salary calculators available online.
It is worth noting that while the minimum wage guarantees a certain income level for employees, employers incur additional costs associated with hiring workers.
For instance, with a gross salary of PLN 3,600, the total cost for the employer will be PLN 4,337, out of which the employee will receive only PLN 2,783.
This illustrates that maintaining an employee involves significant expenses, and mandatory contributions have a considerable impact on the net salary received by the employee.
Summary
For those living and working in Poland, the increased minimum wage from July 1, 2023, may affect their negotiations for salary rates. It’s important to utilize salary calculators to understand the net salary after deductions accurately.
For individuals in other European Union countries or different parts of the world, it is advisable to check the minimum salary regulations in their respective countries.
If you are earning less than the newly set minimum wage (PLN 3,600 gross per month or PLN 23.50 per hour), it is crucial to discuss a raise with your employer to ensure compliance with the Polish government’s minimum wage laws. Remember, no employee should earn below the minimum wage set by law.
