The scale of the increase of the minimum wage is high. Nobody is not expected. Why this decision?
came on it’s time. If not now, when? Favorable economic situation and the improvement in the labor market allow that wage growth was clearly higher. In Poland, still earns too little. The share of wages in GDP is still small, and our minimum wage is 30 percent. the minimum wage in Germany or France. If we look at the relationship of the minimum wage to the average wage, it is similar to other OECD countries. Today is 45.4 per cent., We proposed to maintain this relationship, hoping that in the negotiations, the government will give us a mandate to increase wages up to 1950 zł. The proposal Prime Minister is 50 zł higher, because this Prime Minister made an offer to increase to 2 thousand. zł, and it was adopted by the Council of Ministers. The consequence of this movement will also increase to 13 zł hourly minimum wage.
This is the highest increase since 2012. Experts say that’s not her height as the rapid pace of increase may have adverse consequences for the economy.
Whenever increasing the minimum wage, using the argument that unemployment will increase and expand the gray zone. Previous increases do not confirm this regularity. Today we have other events to mitigate this risk, because unemployment is falling and we have a market worker. If employers do not begin to pay more, employees will be missing. An important incentive must wage growth, besides increasing the average wage and the minimum must follow this trend. Some of the employers said that this means increased costs for companies and the deterioration of competitiveness, but not all are of the view. The head of the Polish Craft Association stresses that to stop an employee, you have to pay him more. Also, former head of the National Bank of Poland Marek Belka sees no threat due to this increase.
Large companies will cope, especially that with them the minimum wage gets generally a small percentage of employees, but do so large increase will not burden smaller, often family businesses, especially in regions with high unemployment?
we do not see such a threat, but we will certainly monitor the situation, whether these fears on the growth of the informal economy and unemployment are not confirmed. If we want our wages grow with GDP, this condition is just to raise the minimum wage. Please note that in our election program was a pact for growth of wages, and in this direction we are going. You well know that today is often part of the remuneration paid under the table. This increase can this money to disclose and they will be paid legally, and not in the gray zone.
And what will be the impact of this decision on the public finances?
Unemployment is 9.2 per cent., or less than one and a half million people, so the budget situation should improve. Funds based on contributions from social or work with rising wages and the minimum wage will have a higher income, as well as budget. So even if your budget will have a little more to spend on the various benefits associated with the minimum wage, for example. Pension insurance contributions clergy or nursing benefit, the financial effect will be for the public finances on a plus.
And what impact will the decision of the government to pay wages of these employees, whose salaries slightly exceed the minimum wage?
will be increased pressure on wages. If someone earns today 2.2 thousand. zł gross, that will want to hike. Maybe it’s time to pay these in a good position to grow. If employers want to keep the employee, you must create career opportunities and salary. It’s on a larger scale also applies to the creation of such conditions for young people not to emigrate. I hope that this multi-pronged impact of increases in the minimum wage or government program “Family 500 plus” will give chances to increase salaries. I hope that the real growth will be higher than projected in the budget.
Can we say that we are market employee?
I think so. The government’s forecast of unemployment at the end of next year to 8.1 percent. You see, it reduces the distance to the EU average, is also growing activity rate, which rose from 63.2 per cent. in 2007. 68.1 percent. in 2015. A positive sign is the fact that in the first four months of this year, employers reported to labor offices 500 thousand. jobs, an increase of over 26 percent. more than a year ago. This proves that we have the employee market and in some regions even started running out of manpower. But not to fall into self-admiration, we must remember that we have unemployment very strongly regionally differentiated.
During the last meeting government has commissioned Ms. special mission. You have to prepare a new formula indexation of pensions. Will it be a completely new solution or correction of existing?
If I knew the answer to this question, I could not get special task. We are looking for a solution that will allow us to fit in the money allocated for next year to indexation, or nearly 1.7 billion zł, and on the one-time additions (1.5 billion zł). We want to increase the lowest pensions, and reflect on the way valorization of the other. We will offer two, three solutions, of which the government will select the best option. We do not exclude also that it will be a special solution for 2017. For now, we want to count the money and look for such ways of their division to support the most affected people with the lowest pension benefits. We do not want a second time to go through indexation, which irritates or is treated as humiliating for the person with the lowest benefits for which increases are 8-9 zł.
How much should reach such an increase ?
If the lowest pension increased to 1 thousand. zł, it also would mean that this would be half the minimum wage. The effects of the increase minimum pension of 120 zł need to accurately count. There were projects increase the minimum pension is 200 zł in the previous term, which was to cost 6 billion zł. Today, these costs might be greater. We must also remember that as we increase the minimum pension, it will still provide the amount of which will be near the height of the new pension.
So if the increase would be up to 1 thousand. zł, is someone who has retired 1050, as you do not get a comparable, will feel injured?
That’s why these variants require accurate conversion. The government had to decide on the current method of valuation, because the June 15 deadline passed, in which we had to submit a proposal indexation rate for the next year the social partners. We offer a 20 percent share of the real growth rate of wages. If we take into account the forecasts will be like this indicator and inflation this year, it would increase retirement in 2017. By 0.88 per cent., An increase of 8 zł for minimum pensions.
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