More firms plan wage hikes

There is a slight rise in firms planning wage hikes in the coming quarter despite a drop in wage pressure, the National Bank of Poland (NBP) wrote on Monday in a report.

The number of firms planning to increase wages in the coming quarter increased slightly despite a drop in wage pressure, the National Bank of Poland (NBP) wrote on Monday in a report.

The NBP wrote that the percentage of firms dealing with wage pressure has fallen by 4.3 percentage points (pps) since the outbreak of the Covid-19 pandemic in the first half of 2020.

Nonetheless, the bank said 48.2 percent of the polled firms said they would make wage hikes in the first quarter of 2023, a 2 pp rise from the last quarter of 2022.

The bank added that forecasts showing wage hikes forecasts were largely the effect of a recent increase in the minimum wage and rising employee pressure to adjust pay to inflation demands.