Prime Minister Beata Szydło on the proposal for minimum remuneration in 2017: it will amount to PLN 2000

The government has approved budget assumptions for 2017 - informed Prime Minister Beata Szydło. Decisions taken by the Council of Ministers on Tuesday included the Act on the sales tax and a proposal for indexation rate for retirement pensions and disability pensions. 

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Photo: P. Tracz / Chancellery of the Prime Minister

At the press conference Prime Minister was accompanied by Elżbieta Rafalska, the Minister of Family, Labour and Social Policy and Paweł Szałamacha, the Minister of Finance.

Dignified life of Poles

A package of proposals supporting Polish entrepreneurs has been drafted and presented by the Deputy Prime Minister Mateusz Morawiecki, in cooperation with Minister Jerzy Kwieciński. Now, we must also remember about employees and assert their rights - said Prime Minister Beata Szydło. 

The head of the government then said that when approving the proposal for the minimum remuneration at PLN 2000, the government was driven by responsibility for the state budget and the situation of public finance. The head of the government added that the decision taken by the government is a sign of responsibility for Polish citizens and social justice. Justifying the resolution of the Council of Ministers Prime Minister said that social stratification was progressing in Poland - there were groups earning very well, but there were also a large number of workers with low wages, with which they were not able to sustain their families. Therefore the government has taken the decision to increase the amount of the minimum wage from present PLN 1850 to 2000.  

Furthermore the government has proposed that the increase of the indexation rate for retirement and disability pensions in 2017 remains at the statutory minimum amounting to 20% of the real increase of the average remuneration in 2016. Now the biggest challenge for the government is to increase lowest retirement and disability pensions - said Beata Szydło. The head of the government declared system solutions in this area.

Budget assumptions approved for 2017

The most important topic of the meeting today was approval of budget assumptions and all of the indicators for next year’s budget that will be decisive for indexation of retirement and disability pensions, lowest wages and budget indicators - said Prime Minister.

The Minister of Finance Paweł Szałamacha informed that according to budget assumptions economic growth was to amount to 3.9% and inflation to 1.3% next year, while at the end of 2017 the registered unemployment was to reach the level of 8.1%.

The decisions of the government taken on Tuesday shall be presented to the Social Dialogue Council for consultation with trade unions and associations of employers. 

Sales tax

In the course of discussions it has been possible to draft a solution, which in the view of entrepreneurs, employers and social partners, and in my opinion, meet all expectations of stakeholders. It is a good solution. First of all it guarantees equal rights and opportunities of small Polish trading companies and large retail elephants - said Prime Minister Szydło. She added that the work on the draft of the Act was an example of a dialogue. The draft authored by the Ministry of Finance envisages introduction of two rates of the tax - 0.8% in income ranging from 17 million to 170 million per month and 1.4% on income in excess of 170 million per month. The tax shall be levied on income from retail sales, that is sales to consumers (natural persons not operating businesses and “flat-rate” farmers.

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