Minimum wage in 2025 – what awaits employers and employees?
The minimum wage is an important element affecting the country’s economy, the standard of living of employees and the costs of doing business by employers. In connection with the upcoming year 2025, it is worth taking a look at the projected changes in this area. In this article, we will discuss the planned minimum wage increases, their impact on net wages, the cost of hiring an employee, and what these changes mean for employees and employers.
Minimum wage in 2025
The Regulation of the Council of Ministers of 12 September 2024 on the amount of the minimum wage for work and the amount of the minimum hourly rate in 2025 was published on 13 September in the Journal of Laws. On its basis, from 1 January 2025, a new minimum wage (the so-called “national minimum”) will apply in Poland, set at PLN 4666 gross per month. This is an increase of PLN 366 compared to the rate applicable from July 2024, which was PLN 4300 gross.
Minimum hourly wage in 2025
Along with the increase in the minimum monthly wage, from 1 January 2025, the minimum hourly rate for certain civil law contracts, such as contracts of mandate, will also increase. The new rate will be PLN 30.50 gross per hour (Journal of Laws of 2024, item 1362), which is an increase of PLN 2.40 compared to the rate applicable from July 2024, which was PLN 28.10 gross.
Net minimum wage in 2025 – how much will an employee receive on hand
How much will the net earnings of employees who in 2025 receive a salary of PLN 4666 gross? In the case of full-time work – without taking into account the ECP, for an employee over 26 years of age, assuming that the employee submits PIT-2 and earns income from one employment relationship in the place of residence – the following are subtracted from the remuneration:
- pension contribution PLN 455.40,
- pension contribution PLN 69.99,
- sickness contribution PLN 114.32,
- health contribution PLN 362.37,
- advance payment for PIT 153 PLN.
After these deductions, the employee will receive PLN 3,510.92 net.
The process of setting the minimum wage
The amount of the minimum wage and the minimum hourly rate is determined by the Council of Ministers by way of a regulation. The proposals are consulted with the Social Dialogue Council, but the final decision rests with the government. In the case of a forecast inflation rate below 5%, the minimum wage is changed once a year, from 1 January. With the expected price increase rate of at least 5%, two dates for raising the minimum wage are set – from 1 January and from 1 July.
We already know that in 2025 the minimum wage increase will take place only once and will be valid throughout the year.
Impact on the labour market and employer’s costs
For workers, an increase in the minimum wage means higher incomes, which can improve their standard of living and increase their purchasing power. This is particularly important in the face of the rising cost of living and inflation.
Employers must prepare for increased employment costs and take these changes into account when planning the budget for 2025. Employment of an employee in the amount of the minimum wage for full A full-time job will cost the employer about PLN 5,621.60 . The total cost of an hour of performance of a civil law contract by the contractor will cost the principal PLN 36.75.
An increase in the minimum wage may therefore affect the margins of enterprises, especially in sectors with a large share of employees receiving the lowest wages. Some employers may decide to reduce employment, which may primarily affect people with low qualifications. On the other hand, high labour costs can be an incentive for entrepreneurs to invest in automation and innovative solutions, which will contribute to an increase in productivity.
LeasingTeam Group is at the disposal of both employees and employers, offering support in the field of personnel consulting, optimization of employment costs and adaptation to changing market conditions. Feel free to contact us to discuss your individual needs and challenges.
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