On 12 September 2024, following negotiations in the Social Dialogue Council, the Council of Ministers adopted the Ordinance on the minimum wage and the minimum hourly rate for 2025.
As the projected price index is below 105%, only one increase is planned for next year.
As a result, from 1 January 2025:
- The minimum gross wage for full-time employees will be PLN 4,666
- The minimum gross hourly rate for the provision of services will be PLN 30.50
Next year’s minimum wage is higher than originally assumed (according to earlier data it was to be PLN 4,626). It is also PLN 366 higher than in 2024 (PLN 4,300 gross from July 2024).
How a higher minimum wage affects other benefits
The increase will have a direct impact on employees’ monthly salaries, but also on other benefits, such as:
Minimum wage and amounts exempt from deductions
The level of the minimum wage also affects the amounts that are exempt from deductions by the employer.
This is because pursuant to Article 871 of the Labour Code, certain amounts may be deducted from an employee’s remuneration without the employee’s written consent, up to a maximum of:
- The minimum wage payable to full-time employees after deduction of social security contributions, income tax withholding and payments made to the Employee Capital Plan (if the employee has not opted out) – in the event of deduction of sums enforced by virtue of enforcement titles to cover claims other than maintenance payments
- 75% of the salary as defined above – for the deduction of cash advances made to the employee
- 90% of the salary as defined above – for the deduction of fines provided for in Article 108 of the Labour Code
If the employee is employed on a part-time basis, these amounts are reduced proportionately.
Slightly different rules apply to deductions made with the employee’s written consent, which are also affected by the minimum wage (Article 91 of the Labour Code).
What is not taken into account when calculating the minimum wage?
The following elements are not taken into account when calculating the minimum wage:
- Service anniversary award
- Severance pay due to an employee’s retirement or disability pension
- Overtime pay
- Allowance for night work
- Length of service allowance
- Special working conditions allowance
Salary rules for certain professions
However, the increase in the minimum wage does not apply to everyone. In fact, there are certain categories of professions for which special rules apply.
For example, the minimum wage rules do not apply to health care workers. The Act on the manner of determining the minimum basic wage of certain employees of health care institutions dated 8 June 2017 sets out separate rules for this group of employees. Similarly, separate rules for determining the amount of remuneration apply to, among others, police officers or university teachers.
The provisions on the minimum hourly rate for the provision of services do not apply, inter alia, to:
- Contracts for freelance work and contracts for services, if the place and time of their performance are determined by the person undertaking the task or providing the service and if such person is entitled to remuneration only on a commission basis
- Contracts for the provision of care and living services through the operation of a family care home pursuant to Article 52 of the Social Assistance Act of 12 March 2004
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