Today, at a meeting of the Council for Social Dialogue, the social partners once again failed to agree on the minimum wage and the amount of allowances for state employees in 2024, the Leviatan Confederation reported.
Konfederacja Leviatan reported that after today’s meeting of the Social Dialogue Council, the social partners once again failed to agree on the minimum wage and the amount of bonuses in the public sector for the next year.
Minimum wage in 2024 ‘Deal was close’
– It’s a pity, because the agreement was close. Employers, counting on the understanding of trade unionists that the minimum wage cannot rise faster than the 18% proposed by the government, because many companies may have problems, at the same time offered to support at least 20%. increases in budgetary wages. This time, the unions have beaten the government on the minimum wage (they want an increase to PLN 4,350), and for the state budget they demand 24 percent. raises, but without the support of employers - we read in the communiqué of the Leviatan Confederation.
Therefore, the organization emphasizes, in 2024 we will have another record - 18 percent. an increase in the minimum wage to PLN 4,300 in July 2024, which will be announced by the government and paid by employers (including contributions and taxes, it will cost about PLN 35 billion), while at the same time an unexpectedly low rate of only 6.6 percent. increase in wages for employees of the public sector.
“This high rise in the minimum wage means that it is growing twice as fast as wages in the economy. In turn, the ratio of the minimum wage to the average wage will exceed 54%, which can lead to a reduction in employment and inflation, and in some industries cause serious problems. We urge you to change the mechanism for calculating the minimum wage before it’s too late - - says Maciej Witutsky, President of the Leviathan Confederation.
Budget increase is not enough
The organization proposes to increase public sector salaries by at least 20 percent next year, taking into account their real decline observed over the years, and especially strong in 2023, when high inflation was not taken into account.
– We consider the government’s proposal to increase wages in the public sector by 6.6 percent in 2024 far from being sufficient, especially since in 2023 the real level of wages in the public sector fell significantly, not even reaching the level of inflation, and for many years not keeping pace with private sector wage growth - emphasizes the Confederation of Leviathans.
The absence of an agreement between the government and the social partners on the amount of the minimum wage means that the Council of Ministers will have to make the final decision on this issue.
Source: Wprost
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