27 August 2024

Minimum wage bill

Yesterday, the website of the Government’s Legislation Centre published a new draft bill on minimum wages. Its purpose is to implement Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union.

The draft bill would partly retain current arrangements, but also contains the following significant changes in establishing the minimum wage:

  • The minimum wage would be revised at least once every four years.
  • Revisions to the minimum wage would consider such factors as:
    • its purchasing power, taking into account costs of living;
    • long-term trends in national productivity;
    • wage growth rates.
  • Annual negotiations on the minimum wage would be based, among others, on an indicative reference value of 55% of the forecast average wage in the national economy, as adopted for the purposes of the draft budget bill.

In addition, the draft bill would establish new penalties for employers, such as:

  • higher fines of PLN 1,500–45,000 for such breaches as failure to pay remuneration by a fixed time, or failure to grant holiday leave that is due;
  • a new offence against employee rights: whoever fails to pay wages for at least three months may be liable to a fine, restriction of liberty or imprisonment for up to two years.

The draft bill is currently at an early stage of drafting, so the final version may be significantly different. The deadline for implementing the Directive is 15 November 2024.

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