The Council of Ministers adopted a regulation increasing the minimum wage from January 2024. The minimum wage will increase from the current PLN 3600 to PLN 4242, and the minimum hourly rate will increase from PLN 23.50 to PLN 27.70. Moreover, from July 1, the minimum wage and the minimum hourly rate are to increase again – to PLN 4300 and PLN 28.10, respectively.
Minimum wage 2024 – what net amount will go to employees’ accounts?
The amounts listed in the regulation are gross amounts. Therefore, the employee will not see PLN 4242 or PLN 4300 in his account. However, he will receive net salaries, reduced by the due PIT tax and ZUS contributions. From January 1, 2024, an amount of approximately PLN 3221.98 will be transferred to the accounts of employees earning the minimum wage. This amount will be increased from July 1 to the net amount of PLN 3261.53.
Increase in employment costs
As wages change, the total amount that the employer must incur to pay for the staff increases. An employer who employs an employee on the minimum wage incurs significantly higher costs than the payment of the salary itself. Additionally, he is also obliged to pay a number of employee social security contributions.
From January 1, 2024, the cost of maintaining one employee will be PLN 5,111. This means that the difference between the actual payment received by the employee and the amount that the employer must cover for the same remuneration is 60%.
After the July increase, maintaining one employee will cost approximately PLN 5,181. After making calculations, it turns out that currently paying five employees costs the employer the same as maintaining four in 2024. Therefore, it can be said that next year the employer will be obliged to pay one additional salary per month.
Increase in the minimum wage and additional obligations of employers
Raising the minimum wage will require employers to verify wages and the need to increase the remuneration paid to employees in cases where it no longer meets the conditions regarding the minimum wage. Employers may also be obliged to appropriately increase the wages of other people they employ, so as to maintain the proportion between the remuneration of individual groups of employees.
