From 1 January 2021 new rates of the minimum wage will apply in accordance with the Ordinance of the Council of Ministers. The minimum wage increased by 200 PLN compared to last year and currently amounts to PLN 2,800 gross under an employment contract. The ordinance also indicates the minimum hourly rate of remuneration in 2021. It increased to PLN 18.30 compared to PLN 17.00 last year.
Increase of the minimum wage – what does it mean for the employees?
Currently there are about 1.7 million people in Poland receiving the minimum wage. The change introduced by the Council of Ministers means that a person employed for the minimum wage will receive PLN 2061.67 net (after tax). Last year the net minimum wage was PLN 1920. So there will be nearly 150 PLN more in the employees’ pockets. Moreover, along with the increase in the minimum wage, the rates for overtime and night work increased as well.
The minimum wage currently constitutes 53.2% of the average remuneration in the national economy projected for 2021.
Minimum wage and temporary work – does the ordinance apply to temporary workers as well?
A temporary employment agency, which directs employees to perform work in another company (at the so-called User Employer), is bound both by the Ordinance on the minimum wage and the Act on the employment of temporary workers. This means that if the salary of a temporary employee in 2020 was PLN 2600, then in 2021 it has to be raised in accordance with the guidelines for the minimum wage.
When hiring temporary employees, it is also worth remembering the regulations contained in the Act on the employment of temporary workers. Article 15 of the act indicates that during the performance of work for an employer a temporary employee cannot be treated less favourably with regard to working conditions and other terms and conditions of employment than employees employed by that employer in the same or a similar position.
When using the services of an employment agency, temporary employees must therefore be provided with remuneration equivalent to that paid to own employees. This also applies when, within the framework of an agency agreement, employment of foreigners takes place.
Increase of the minimum wage not only in Poland
According to the ordinance of the Council of Ministers from 1 January 2021 the minimum wage in Poland is PLN 2,800 gross per month. The minimum hourly rate also changed from PLN 17.00 to PLN 18.30 gross. The minimum wage increased with the new year in Ukraine and Germany, too.
Minimum wage in Germany
The concept of minimum wage was introduced in Germany not so long ago, namely on 1 January 2015. Since then the amount of the minimum wage has been steadily increasing. In Germany the level of the minimum wage is determined by the amount of remuneration per man-hour. In 2020 it was EUR 9.35. From 1 January 2021 persons employed in Germany will earn a minimum of EUR 9.50, which is about PLN 43.14 per working hour. Another increase of minimum wage is planned for 01.07.2021 – then the wage of workers earning the least is to increase by another 10 cents and will amount to EUR 9.60.
Minimum wage in Ukraine
Employees in Ukraine can also count on an increase in the minimum wage. As of January 2021 the lowest wage for work in Ukraine increased to UAH 6,000 per month, i.e. by UAH 1,000 compared to 2020. This means that an person employed in Ukraine for the lowest possible wage will receive the equivalent of about PLN 790, i.e. 130 PLN more than last year.
The next wage increase in Ukraine is planned for December 2021. At the end of the year the minimum wage is expected to increase by UAH 500 and amount to UAH 6,500.
