Minimum wage increase to cost Polish budget EUR 51 mln

Raising the minimum wage to the government-proposed level of PLN 2,220 (EUR 523) will increase budget spending by PLN 215 mln (EUR 50.70 mln), the Family and Labour Ministry has calculated.

The higher spending is related to various budget expenditures that are tied to the minimum wage level, such as benefits and contributions calculated on the basis of the minimum pay.

The ministry quoted the Central Statistical Office's data showing that there are about 1.5 million people earning the minimum wage in Poland, which makes up 13 percent of all full-time employees.

The government on Thursday approved a proposal to raise next year's minimum wage level to PLN 2,220 (EUR 523) from PLN 2,100 (EUR 495), or by 5.7 percent, and the hourly minimum rate to PLN 14.50 (EUR 3.42) from PLN 13.70 (EUR 3.23), or by 5.8 percent.

Trade unions say the proposal is too modest and want a raise between PLN 2,278.50 and PLN 2,383 (EUR 537.26 and EUR 561.90).