Poland Sets 2027 Minimum Wage Below 5,000 PLN

The Polish government has finalized the minimum wage for 2027, setting the gross monthly minimum wage at 4,950 PLN and the minimum hourly rate at 32.30 PLN. This decision marks the end of this year's procedure for determining the minimum wage and hourly rate, following disagreements between social partners.

The Council of Social Dialogue did not reach a joint agreement, with significant differences between trade unions and employer organizations. Trade unions had pushed for a minimum wage of at least 5,200 PLN, an 8.2% increase, while employer organizations proposed a lower increase, with some suggesting 4,861 PLN. The government's final decision falls between these proposals.

This wage increase will impact other benefits tied to the minimum wage. The maximum severance pay for termination not due to employee fault will rise to 74,250 PLN from the current 72,090 PLN. Additionally, preferential social insurance contributions for entrepreneurs, calculated at 30% of the minimum wage, will increase. These contributions will amount to 469.84 PLN in 2027, up from 456.16 PLN currently.