A double increase in the minimum wage does not necessarily consequence in an increase in the minimum wage. The employer has the chance to propose a wage lower than the minimum monthly salary, but only in certain situations. Like what? Check it out!
Reduction of employees' remuneration by law
The legal provisions let for the unchanged basic remuneration laid down in the wage agreement, despite the double increase in the minimum wage in 2024. The employer may do so without prejudice to the law, subject to circumstantial conditions.
When can the wage be lower than the minimum wage?
The employer may fix a wage below the national minimum if this difference is compensated by various allowances or bonuses. In that case, this wage shall be treated as remuneration for work, which must be at least at the level of the national minimum wage and not as the basic wage as defined in the employment contract.
What does the PIP Manual indicate?
On the State Labour Inspection website, you can find legal advice on pay for work, including the following information:
"The provisions of labour law do not specify how remuneration for work is to be determined, nor do they list all the components that may be included in it, and employers are so free to apply the remuneration strategy they will introduce for their employees".
What is not considered part of the salary?
This does not mean that all supplements and bonuses can be treated in the same way. There are allowances, prizes that actually increase the level of earnings and cannot supplement the minimum monthly wage – rather, they indicate, if we gotta gain above the minimum wage. What's applicable here?
They shall not be included in the remuneration for work:
- Overtime compensation;
- Jubilee Award;
- Retirement allowance or pension received due to incapacity for work;
- Long service allowance;
- Work allowance at night.
Remuneration components – minimum level
All elements of remuneration, but those mentioned above, must be at least the minimum remuneration applicable. If they are lower, the employer violates the law.
Remind me! As of January 2024, the minimum wage is PLN 4242 gross. As of July 2024 it will be PLN 4,300 gross.
Dear reader, we remind you that all legal matters in this substance we compose about can be complicated and frequently require the aid of a lawyer. It's worth discussing it with a lawyer before taking legal action.
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Attention! This article should be considered as a clue, a hint, not a prescription, how to solve your own problem. The legal opinion has no binding power for offices, courts, so we urge that legal matters be consulted straight with a lawyer. Each case is different and requires individual analysis.
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Daniel Głogowski
Publicist, author and social activist. The first articles were published in 1999 for global publishers. For more than 30 years, he has gained his experience through cooperation with the largest editorial offices. In his articles, he sought to address controversial themes and present first viewpoints that allowed for a deeper knowing of the issues discussed. Over the years, he gained a reputation as a reliable journalist. Contact: [email protected]
