A few days ago we reported the DGP that the minimum wage will amount to 1920 zł. At the last moment the Council of Ministers decided that the increase will be even greater. The unions fought for in 1970 zł, but the government decided that the budget can afford to add another 30 zł. Employers proposed in 1900 zł.
– It’s a decision that tends toward our postulate that the minimum wage was half the average salary – says Marek Lewandowski of “Solidarity”.
– not height minimum wage, but the pace of its increase is more important. The faster, the risk of loss of jobs for people with low skills is higher – but cooled satisfaction union Janusz Jankowiak, chief economist of the Polish Business Council.
But this is not the end of good news for workers. The Council of Ministers, taking yesterday macroeconomic assumptions for the budget for 2017., Also provided additional money to government officials.
And here, as in the case of low-paid workers, officials with the lowest incomes receive a raise. Their chapter shall be decided heads of offices, but the government clearly suggests that better-paid should not count on them. This was confirmed in a conversation with DGP head of the civil service Dobrosław Dowiat-Urbanski. Yesterday he admitted that the Ministry of Finance.
For the better, but only a little, salaries will be able to count those officials whose salary is only slightly higher than the minimum. The least paid in the civil service, whose remuneration does not exceed 2.6 thousand. zł, more than 60 thousand. People earning at the level of the minimum wage – approx. 8 thousand. This year, money from increases also hit mainly the least beneficiaries, but this was not the norm. You have to bear in mind that the average salary in the civil service is nearly 5 thousand. zł.
The better off are the uniformed services. Interior Ministry prepared a “Program of modernization of Police, Border Guard, State Fire Service and the Government Protection Bureau in the years 2017-2020″. On the basis of next year, all officers receive the same increase, ie 253 zł per person. Today, the average salary policeman is 4591 zł. The average salary in the State Fire Service is 4494 zł. The increases for the soldiers too have to be a similar amount, and will go to all the bodies.
wage revolution in offices and businesses
The most sensational decision of yesterday’s meeting of the Council of Ministers was to raise wages the minimum in the next year to 2 thousand. zł. More will also get budżetówka.
– This is another step that will do towards a policy worthy of earning and achieving decent wages and benefits in Poland – summed up the meeting, Prime Minister Beata Awl. Resort family, work and social policy went to the government with a more modest postulate. An increase in the minimum wage would amount to 70 zł in relation to this year, an increase of 3.7 percent. This meant maintaining the level of 45 percent. the average salary. The new proposal gives an increase of 8.1 percent .. The minimum salary would constitute 47.04 per cent. the projected average wage in the national economy.
– This is more than we expected, but consistent with what he said Deputy Prime Morawiecki, it’s time to end the reliance of our competitiveness at lower wages – says a spokesperson for Solidarity Marek Lewandowski. As pointed out, is a step in the proposed union by bringing the minimum wage to a level of 50 percent. the average salary.
Employers are afraid
In a completely different moods are employers. – It’s terribly high increase in minimum wage. This is slightly less than the average salary in micro-enterprises – noted economist of the Confederation Lewiatan Margaret Starczewska-Krzysztoszek. In her opinion, this will mean a significant increase in costs in companies, because they grow not only remuneration to 2 thousand. zł, but will also increase the pressure on those above 2 thousand. zł. – So large minimum wage increase that will be a problem for a large portion of micro-businesses in less developed regions and for the industries in which a large part of the remuneration is close to the minimum wage – emphasizes economist. The result may be an increase in the gray zone.
The government’s decision differs significantly from the proposals of employers. According to the Confederation Lewiatan minimum wage in 2017. Rose from 1850 to 1900 zł zł, an increase of 2.7 percent. As they emphasized it and so increase four times higher than that resulting from the law on the minimum wage. In turn, the unions believe that the good economic situation, as well as in companies should be an argument for pay rises. Now the conversation will move to the Council for Social Dialogue, but a revision of the government’s decision of the employer rather not have to count.
An increase in the minimum wage means an automatic increase in the minimum hourly wage. This solution is expected to enter into force on 1 January 2017. And is designed to ensure that the salaries of the contracts-orders will not be significantly different from at least the minimum wage on contracts of employment. The current proposal is 12 zł per hour. After the increase the minimum wage in line with what is at 2017. Proposed resort family, work and social policy, the hourly rate would increase to 12.30 zł, but after yesterday’s decisions will be about 13 zł.
Frostbite offices
improve also budżetówce. It will get extra money for the second year in a row. Justice is not introducing general rate increases, it reproduces a solution of 2015. PO-PSL government, which has decided to allocate the salary increase of 2 billion zł, without imposing the growth rate of wages. Previously, however, for many years clerical salaries were frozen. Previous governments have not raised salaries since 2008., Mainly due to the tense situation in the budget, and the system was sealed even more in 2010. In the short term, increased the efficiency of the administration. If the wage fund was frozen, the only way to raise was to use money from vacancies resulting from eg. The leave on retirement. So the increases were possible where workers diminished, and the work was divided among the others. But it had its bad effects. Economists pointed out that the ongoing so long wage freeze is de-motivation of employees, limits their development, comes down to the brain drain from the public sector and the best escape to the private sector. Since 2008. Until 2015 wages in the national economy increased nominally by almost 23 percent.
Decision PO-PSL coalition of unfreezing salaries fell shortly before the elections and was received as part of the election campaign. At the time of the bailout, nominal wage growth in the economy was not high income workers grew in real terms primarily due to deflation. However, today the situation is somewhat different. On the labor market is very well: unemployment is the lowest in history (the unemployment rate in May amounted to 9.2 per cent.), The company increases employment and wages. With the NBP survey it shows that at the beginning of the year, almost every fifth entrepreneur planned to give their employees a raise. On average amount it had in the second quarter. 4.9 percent. Every sixth company intended to significantly increase salaries by 10 percent. and more.
Jaroslaw Janecki, an economist at Societe Generale bank, said that the government can not ignore this information. – If it is assumed, eg. A marked improvement in tax collection, if you created a new entity, which is to take care of this, I think the government will not regret the money to reward good employees who will deal with this – notes. According to him, the maintenance by the previous governments long-term wage freeze in the public sector was not the best decision, but also due to the increase in employment in the administration. – If indeed things have gone this path, that increases the wage bill and at the same time reduces employment in the administration, it increases would be widespread social consensus – says Janecki. In his view, the optimal way of remuneration of public sector workers would be one in which the heads of individuals deciding the size of individual salaries, taking into account the quality of their work.
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