As businesses prepare for 2025, understanding and adapting to evolving wage and payroll regulations is essential for compliance and competitiveness. Poland, one of Europe’s rapidly growing economies, is implementing significant updates to its minimum wage requirements and payroll processes starting January 1, 2025.
Below is an overview of Poland’s new minimum wage, payroll regulations, and compliance requirements to ensure your business is prepared for the year ahead.
Expanding Your Business Into Poland?
There are lots of opportunities for innovative companies like yours here. Find out the key elements of this exciting new market.
Effective January 1, 2025, the monthly minimum wage in Poland will increase to PLN 4,666, while the hourly rate will rise to PLN 30.50. This is equivalent to USD 1,150.44 and USD 7.52. This marks a steady increment from July 1, 2024, when the minimum wage was set at PLN 4,300 per month and PLN 28.10 per hour. This is equivalent to USD 1,060.27 and USD 6.93.
Determination of The Minimum Wage
The minimum wage is set annually by September 15 for the subsequent year through negotiations at the forum of the Tripartite Commission for Social and Economic Affairs. If the Commission is not able to reach a consensus, the minimum wage is set by the government.
The minimum wage can also be determined through collective bargaining and may not be less than the one set by the labor law.
Payroll Frequency in Poland
Under Poland’s Labor Code, employees must be paid at least once a month, adhering to the following rules:
Payment Date: Salaries must be disbursed on a fixed date, no later than the 10th day of the following calendar month.
Holidays: If the payment date coincides with a public holiday, the salary must be paid on the preceding business day.
Implications for Employers
Employers in Poland should prepare for the wage increase by reviewing payroll systems and budgets to ensure compliance and to avoid discrepancies. Non-compliance can lead to fines.
Expanding Your Business Into Poland?
There are lots of opportunities for innovative companies like yours here. Find out the key elements of this exciting new market.
The National Labor Inspectorate (Panstwowa Inspekcja Pracy) ensures compliance with labor laws, including minimum wage requirements. Employers found in violation face severe consequences:
Fines for Non-Compliance: Employers who pay less than the minimum wage or delay payments may face fines ranging from PLN 1,000 to PLN 30,000. This is equivalent to USD 245.47 to USD 7,364.10.
Initiation of Proceedings: Investigations can be triggered by employee complaints or routine inspections.