1️⃣ In January 2024, the average gross salary in Polish companies employing at least ten people stood at PLN 7,768 (EUR 1,798), marking a notable 12.8% increase compared to January 2023 and clearly surpassing economists' projections.
2️⃣ Wages in Poland are experiencing their most rapid growth in real terms since spring 2008, i.e. in almost 16 years. Due to decrease in inflation (estimated at 3.9% in January 2024), the real average salary increase in January reached approximately 8.9% on a yearly basis.
3️⃣ The surge in average wages was heavily influenced by the raise in the gross minimum wage to PLN 4,242 (EUR 982) in January 2024 from PLN 3,600 (EUR 833) in June 2023, marking a significant 17.8% increase.
4️⃣ Analysts at Picodi.com compared the increase of Poland's net minimum wage (EUR 729) with that of other countries. It turns out that the annual increase of 18.9% ranks Poland 9th in the world in this regard.
You can take a look at current net minimum wages and their annual increases in other European countries on the map below.
5️⃣ In terms of Purchasing Power Standard (PPS), a Eurostat-defined metric reflecting price level variations between countries, Polish gross minimum wage (1491 PPS) is the 7th highest in the European Union. This places Poland ahead of Spain for the first time, ranking only behind Germany, Luxembourg, the Netherlands, Belgium, France and Ireland.
What's next? 🔍
According to analysts at Polski Instytut Ekonomiczny, the coming months may bring a decline in the number of jobs, but the increase in unemployment rate is expected to be small.
Salaries in the public sector are going to be increased as well. Especially teachers, civil servants and those whose earnings are substantially affected by the minimum wage hike can anticipate higher incomes.
Increased spending and savings are on the horizon. Data from Glowny Urzad Statystyczny shows that retail sales rose by 3% y/y in January. At the same time, the interest in savings is increasing, which could slow down the growth in consumption.
In July 1, 2024, the minimum wage will be raised again to PLN 4,300 gross (EUR 995), which translates into PLN 3,262 (EUR 755) net.
Sources:
Would like to stay up to date with business news from Poland?
Consider subscribing to Spondeo’s monthly newsletter: