The government has announced a evidence wage increase. Millions of Poles will pay the higher ZUS!

dailyblitz.de 8 hours ago

The government announced another, 3rd in a row a crucial increase in minimum wage, which will enter into force from January 2026. At first glance, the figures are awesome – since December 2022 the minimum wage increased by PLN 1656 gross, which represents a 55% jump. For millions of Poles making the least is seemingly excellent news. However, behind this facade is simply a mechanics that will make a real profit in the portfolio of many people much smaller than expected. The key to knowing this paradox is increasing contributions to ZUS and wellness insurancewhich are straight linked to the minimum wage. In practice, this means that the higher the minimum salary, the greater the share of the income is consumed by compulsory taxes. For many workers, especially entrepreneurs, the increase can be rather disappointing.

Who will be affected by the hidden increase in contributions? The list is long

The increase in minimum wage increases will affect a much wider group than only those employed on a contract of employment. The list of payers who from 2026 will gotta transfer higher amounts to ZUS is amazingly long and includes millions of Poles. Of course, in the first place, higher contributions will be paid by employees at the time, but the burden will besides be felt Contractors and self-employedfor which the contribution base is closely linked to the minimum remuneration.

This will be peculiarly acute for entrepreneurs utilizing preferential forms of payment of contributions, specified as Small ZUS Plus. For them, a higher minimum wage means an automatic increase in fixed operating costs, regardless of whether their revenues besides increase. This is simply a real threat to the profitability of thousands of micro-firms. The list of victims does not end there. Higher contributions will besides be paid by clergymen, non-professional soldiers in active service, farmers operating peculiar agricultural production departments and even nannies legally employed on activation contracts. The changes will besides include those on parental leave who are besides moonlighting and those who combine kid care with professional activity. Thus, a government rise becomes a hidden taxation that hits the broad spectrum of society.

Domino effect. Higher minimum wage is not just a salary

The consequences of raising the minimum wage go far beyond the level of wages and contributions. The minimum remuneration in the Polish legal strategy serves as a benchmark for many another benefits, penalties and fees. It creates powerful domino effectthat will affect the finances of both citizens and companies. As the minimum wage increases, another amounts automatically increase.

First of all, the maximum fines imposed in mandate proceedings and fiscal penalties should be expected to increase. Minimum amounts of compensation will besides be higher, for example for mobbing or discrimination in the workplace. This in turn increases the financial hazard to employers. Changes will besides straight affect workers – the benefits resulting from the Labour Code will increase, specified as night work allowance, remuneration for downtime or severance for group exemptions. Although this seems to be beneficial at first glance, in a broader position this means further increase in labour costs, which may discourage companies from creating fresh jobs.

Who will actually gain and who will lose? Balance of changes

Each minimum wage increase has 2 sides of the medal. Undoubtedly, the biggest beneficiaries are those who gain the least, for whom a higher gross wage is simply a real aid in combating inflation and rising costs of living. The increase in their purchasing power can translate into Increased interior consumptionwhich should theoretically stimulate the economy. From the position of the state budget, higher salaries besides mean higher income taxation revenues and contributions to the Social safety Office, which improves public finances in the short term.

However, the another side of the medal looks much little optimistic. For many companies, especially in the services, trade and light industry, where margins are low, so sharp increase in labour costs Could be deadly. These companies will face a hard choice: to rise prices, which will weaken their competitiveness, or to look for savings. The second most frequently means cutting jobs, stopping recruitment or pushing employees into civilian law contracts and into the grey area. Consequently, a policy which is intended to defend the weakest can paradoxically worsen their labour marketplace situation.

The voice of employers. The government works besides fast and without a plan?

Employers' organisations have been informing for years that the rate of minimum wage growth in Poland is inadequate to the pace of economical improvement and productivity growth. In their opinion, the decisions of the government are more political than economical and do not take into account the realities in which Polish companies operate. Business representatives stress that the minimum wage level should be based on nonsubjective indicators, for example as 50% of average wage in the economyto guarantee greater predictability and stability.

Entrepreneurs inform that the current aggressive wage policy, implemented under conditions of inactive advanced inflation and immense cost pressure, leads to nowhere. alternatively of solving labour marketplace problems, it only deepens them. No simultaneous, comprehensive reform of the tax-contributory system makes rising labour costs a barrier to business improvement and investment. In the opinion of experts, without systemic changes that would relieve the burden of work, further increases in minimum wage will be more harmful than beneficial to the economy as a whole.

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The government has announced a evidence wage increase. Millions of Poles will pay the higher ZUS!

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