There is a budget crisis.  “I am terrified of the future.”

And assuming an increase in the national minimum wage by 20% next year, the problems of the budget sector will increase – and not only in terms of raising the wages of the lowest earners. According to estimates by Łukasz Kozłowski of the Confederation of Polish Entrepreneurs, the new minimum wage will be PLN4,254 gross.

The rest of the article is under the video

See also: Hunger pensions for thirty-year-olds today. “One-third of us will get the least benefit.”

An employee who receives the minimum wage will receive an average annual increase of 709.40 PLN gross monthly salary. This large increase results largely from a mechanism called a validation index, which compares expected inflation in the past with its actual values. At the moment, forecasts for 2022 are being checked, Kozovsky explained in an interview with money.pl.

Minimum wage versus government wage

Let us remind you that in 2023 the government raised the minimum wage by 19.6 percent, while the law stipulated an average of 7.8 percent. An increase in the budget area. In 2024, economists predict that the national minimum will increase by 20.5%. – At the moment, however, there is no information on how much wages will increase in the state sector.

Often such a significant increase in the minimum wage affects the state budget.

I think this is unfair, because it leads to stable salaries, almost equal wages of a junior employee performing simple work and an experienced specialist responsible for deadlines or the budget – says Kamil Sobolewski, chief economist of Employers Poland in an interview with Money .pl.

He adds that if 40% of the salary budget spent last year is on employees who earn the minimum wage, and other employees cannot, in principle, be given a raise, Otherwise, the growth rate of total wages will exceed the statutory rate of 7.8 percent.

wage flattening

We talk about salaries with Monika Dittmar, secretary of the council of the main trade union of social insurance workers about the situation at one of the state enterprises.

– The phenomenon of settling the salaries of employees of the budget sector has been observed for years in the Social Insurance Institution. This is an alarming phenomenon for us – he points out in an interview with money.pl.

He adds that, on the one hand, trade unions, representing employees, are fighting for fair wages and are satisfied with the information on the increase in the minimum wage, and on the other hand, Observation in experienced employees with many years of experience – resignation, frustration, and feelings of diminished professional accomplishments to date in relation to new employees.

Today, the difference in the base salary for a newly hired employee with many years of work experience is only a few hundred zlotys, says a union member.

As Dietmar adds in an interview with money.pl, despite the current secrecy of salaries, employees exchange information on this topic – which upsets many and affects their daily work.

To the extent that they do not want to train new employees to perform their duties, they do not want to share their knowledge, experience and skills. I am terrified of the future regarding salary disclosure in the budget area. This will only lead to frustration and resentment of the crew. Ditmar adds that this will certainly be a big problem for the business owner.

Leave work

A representative of the main ZUS trade union tells us that the generally low level of salaries to the state budget has been causing dissatisfaction for years. Added to this is the lack of prospects for real wage growth – at least through the rate of inflation. For these reasons, ZUS employees with many years of experience leave.

– For young people, the ZUS, which offers a start from a total of PLN 3,700, is also not an attractive employer. This is why there are so many ups and downs. Even when young people come to work, when they see what conditions are imposed on them, what is required of them, what tasks they must perform and what knowledge they must possess – they quickly quit work. From ZUS and go to other companies to get more money – indicates Ditmar.

This high increase in the national minimum wage also affects teachers. As Magdalena Kaszulanis, spokeswoman for the Polish Teachers’ Union, tells us, after this increase, the salaries of junior and hired teachers will be below the minimum salary, because today their basic salary is 3,690 PLN and 3,890 PLN total, respectively. Let us remind you that last year, teachers at the start of their careers had to receive compensation to the national minimum.

The basic salary of a certified teacher, i.e. the most experienced teacher at the peak of his or her career, is PLN 4,550 today and would be only PLN 300 above the national minimum. It’s a scandal! Would a college graduate consider working in a school? No, because for a couple of years now we have been noticing a shortage of people willing to work with children. The personnel crisis will deepen further. And this means a decrease in the quality of teaching in Poland, he notes in an interview with money.pl.

Possible solutions

According to experts, changes are needed. – As employers in Poland in 2022, we proposed Equating the rate of wage growth in the public sector with the rate of increase in the minimum wage and the rate of appraisal of pensions and pensions, because the differentiation between these ratios pays off financially for the government, but it is not socially fair. And he calmly multiplies the ranks of the victims of inflation, for example, people whose wages were clearly higher than the minimum wage, and now, despite their efforts and professional development, are equal to this minimum wage, – Sobolevsky tells us.

He adds that this problem affects 1.5 million Poles, and its stimulating effects reduce the comfort and quality of work.

Finally, it’s worth seriously talking about it in 2023, rather than blindly applying the laws of 20 years ago. A worthwhile solution might be the regionalization of the minimum wage or the transfer of the negotiations on the minimum wage to the industry level, because PLN 4,000 in the IT industry in Warsaw may be much easier than in the Kalisz region, where a year ago it was Average wage 4000 PLN – Comments Chief Economist Employers of Poland.

What do teachers think? A representative of the Polish Teachers’ Union proposes linking teachers’ salaries to the average salary in the economy. – We have prepared a ready draft in the form of a civil work. The bill is in the House and awaiting processing. We also propose a 20% increase in teachers’ salaries this year. Kaszulanis points out.

Weronika Szkwarek, journalist at money.pl

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