Gov't suggests higher minimum wage in 2023

Marcin Bielecki/PAP

The Polish government has suggested a 12.39-percent minimum wage increase from January 2023 and a further 2.22-percentage point rise from July 2023.

The minimum wage will grow from this year's PLN 3,010 (EUR 657) to PLN 3,383 (EUR 739) from January 2023 and to PLN 3,450 (EUR 753) from July 2023, the government decided at a meeting on Tuesday.

The government also suggested that the minimum hourly wage should be raised to PLN 22.10 (EUR 4.82) from January 2023 and to PLN 22.50 (EUR 4.91) from July, which constitutes a 12.18-percent and 14.21-percent increase, respectively, on 2022's minimum hourly wage of PLN 19.70 (EUR 4.30).

Poland is facing tougher times as interest rates are rising to stem inflation that has hit its highest point since 1998, but higher rates could stifle economic activity and consumption, the main driver of Poland's economic growth.

This could be the reason for falling short of the minimum wage promise made by the ruling party leader, Jaroslaw Kaczynski, before the 2019 parliamentary elections. At that time, Kaczynski said the minimum wage could reach PLN 4,000 (EUR 873) by the end of 2023.