Labour law updates and recommendations

Minimum wage in 2020

In 2020, employers will be obliged to pay full-time employees at least PLN 2,600 gross (approx. EUR 600) per month. This increase in the minimum wage will have an impact on other financial benefits received by employees in connection with their employment, i.e. there will be an increase in severance pay in the case of collective dismissals or in the special allowance for working at night.

According to the new provisions, the minimum wage for performing services on the basis of some civil law agreements such as service agreement will also increase – to PLN 17,00 (approx. EUR 4) for each hour of performing the services.

In principle, the change in the minimum wage does not require making any amendments to existing agreements. Having said that, if agreements contain provisions that refer to the amount of the minimum wage, it would be advisable to update them. Best practice is not to specifically state the actual amount of the minimum wage in a given calendar year, but just to use the term “minimum wage”.