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Minimum wage increase from July 2024: challenges for businesses and HR
From 1 July 2024, Poland will introduce another minimum wage increase, directly affecting millions of employees and forcing businesses to adapt to new economic conditions. Under the amended Minimum Remuneration for Work Act, the minimum wage will rise from the current gross PLN 4,242 to gross PLN 4,300 per month. The hourly rate will increase from PLN 27.70 to PLN 28.10. After the increase, the minimum monthly wage will be PLN 2,620 higher than in 2014, a rise of 156 percent. Other benefits linked to the minimum wage will also increase, such as night-work supplements, pay for downtime and severance for collective redundancies.
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Challenges for businesses
The minimum wage increase creates new challenges, requiring a comprehensive approach to financial and human resource management. Companies must adjust payroll budgets and develop pay strategies that comply with the law and appeal to employees. Adjusting budgets requires a detailed review of operating costs to identify savings without reducing the quality of services or products. Restructuring teams may be needed to optimise staffing and improve efficiency.
HR and payroll department duties
HR and payroll departments play a key role in implementing the changes. Employment contracts and pay records must be updated, and the new minimum rate entered into the IT systems calculating wages and contributions. HR and payroll must ensure that all payroll processes comply with the law and are properly explained to employees.
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Summary
The minimum wage increase from July 2024 is a substantial challenge for Polish companies, including accounting and advisory firms. Preparing properly and carefully managing payroll and HR processes is essential. Only then can owners respond effectively to the new rules and minimise risks associated with the rise.
Use TaxCoach's HR and payroll services to adapt efficiently to legal changes and optimise business costs. Contact our specialist here.
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