Polish government sets 2027 minimum wage at 4,950 PLN after tripartite talks fail

Government sets 2027 minimum wage at 4,950 PLN

The Polish government published a draft regulation setting the minimum monthly wage at 4,950 PLN brutto from January 1, 2027, an increase of 144 PLN, or 3 percent, over the current 4,806 PLN in force since January 1, 2026. The minimum hourly rate for civil-law contracts would rise to 32.30 PLN brutto, up 0.90 PLN from the current 31.40 PLN. Approximately 2 million people in Poland receive the statutory minimum wage. The forecast inflation rate for 2027 is 2.5 percent, below the 5 percent threshold that would trigger a second mid-year increase under Polish law. The amounts are identical to those previously presented to the Social Dialogue Council for negotiation.

Negotiations collapse in Social Dialogue Council

The Social Dialogue Council (RDS), a tripartite body of unions, employers and government that replaced the Trilateral Commission operating since 1994, failed to reach agreement on the 2027 rate. Trade unions demanded a minimum of 5,200 PLN brutto, an 8.2 percent increase. Employers accepted the government's proposal, though some employer organisations pointed to 4,861 PLN as their preferred figure. The Ministry of Family, Labour and Social Policy had earlier proposed 4,986 PLN, a 3.7 percent increase, arguing the amount corresponded to half the forecast average salary of 9,971 PLN brutto for 2027. Under Polish law, when the RDS does not agree by the statutory deadline, the Council of Ministers sets the rates by September 15, and the amounts cannot fall below those previously presented for negotiation.

Grzegorz Sikora of the Trade Unions Forum said he understood the challenges facing entrepreneurs, especially rising labour costs, but argued the lowest-paid should not bear the burden.

You cannot punish the lowest-earning people for that.

Łukasz Bernatowicz, an employer representative in the RDS, assessed the proposal in June before negotiations began.

The government proposed, on the one hand, a rational increase of the minimum wage by 3 percent. On the other hand, the question arises why it diverges from the forecast inflation for next year of 2.5 percent. Nevertheless, it seems that as employer organisations we could accept the minimum wage at this level.

Linked benefits increase with the wage

Several benefits tied to the minimum wage will also rise from the new year. The maximum severance pay for termination for reasons not attributable to the employee will increase to 74,250 PLN from the current 72,090 PLN. Preferential social insurance contributions for entrepreneurs, calculated at 30 percent of the minimum wage base for 24 months, will total 469.84 PLN, up from 456.16 PLN. The individual components are: retirement 289.87 PLN, disability 118.80 PLN, accident 24.79 PLN, and sickness 36.38 PLN.

Pension indexation decided separately

On pension indexation, unions sought a formula combining inflation plus at least 50 percent of real average wage growth, while employers and the government favoured retaining 20 percent of real wage growth. The government kept its version, and the relevant regulation has already been published in the Journal of Laws.

A decade of minimum wage growth

Over the past 10 years, the minimum wage has risen by 3,056 PLN, from 1,750 PLN in 2015. The largest increases came in 2023 and 2024, when inflation above 5 percent triggered two raises per year. In 2023, the wage rose to 3,490 PLN in January and 3,600 PLN in July, a combined 590 PLN increase over 2022. In 2024, it reached 4,242 PLN in January and 4,300 PLN in July, 700 PLN more than the previous year.