What will the national minimum wage and the total cost of employing a staff member be in 2026?

From 1 January 2026, the minimum wage in Poland is 4,806 zł gross per month, which represents an increase of 140 zł compared with 2025. The minimum hourly rate for civil-law contracts rises to PLN 31.40 gross. This arrangement, in accordance with the Council of Ministers’ Regulation of 11 September 2025, remains in force throughout the year – no second increase is planned mid-year, which stabilises budget planning for companies. An employer hiring a staff member on the minimum wage must expect the total cost of employment to be 5,790.28 PLN per month. This amount includes both the gross salary and all social security contributions (ZUS) as well as funds covered by the employer.

It is worth noting that from a gross amount of PLN 4,806, the employee will receive a net amount – under standard assumptions (employment contract, aged over 26, no PPK, PIT-2 tax return submitted) – of approximately PLN 3,605.85. The discrepancy stems from compulsory deductions: social security contributions, health insurance contributions and PIT. For participants in Employee Capital Plans (PPK), the net amount will be slightly lower due to additional deductions.

How is the national minimum wage rising, and what are the implications for businesses?

The rate of growth in the minimum wage in Poland over the last decade has been exceptionally rapid. Between 2020 and 2026, the minimum wage rose from PLN 2,600 to PLN 4,806 gross, an increase of nearly 85 per cent. Such sharp increases mean that employers’ employment costs have almost doubled over the course of six years. In practice, according to government data and an analysis by the Ministry of Family, Labour and Social Policy, the rise in the minimum wage has led to an increase in all benefits linked to this amount – from rates for night work and severance pay, through social benefit limits, to higher social security contributions.

For employers, particularly in the SME sector, regular increases in the minimum wage pose a real challenge to their budgets. In sectors where the majority of employees earn the national minimum wage (retail, catering, transport, manufacturing), an increase of 140 zł gross results in a rise in employment costs of approximately 170 zł per person per month. Businesses must therefore adjust their pay policies, analyse their remuneration structures and consider optimising staffing levels, investing in automation or making changes to their service offering.

How do you calculate the total cost of employing a worker on the national minimum wage in 2026?

The total cost of employing a worker in 2026 is the sum of the gross salary and the employer’s share of social security contributions and tax. With a minimum wage of 4,806 zł gross, the contributions payable by the employer are as follows:

• Pension contribution (9.76 per cent): PLN 469.07
• Disability pension (6.5 per cent): 312.39 zł
• Accident insurance (1.67 per cent): 80.26 zł
• Labour Fund (2.45 per cent): 117.75 zł
• Guaranteed Employee Benefits Fund (0.10 per cent): 4.81 PLN

The total cost to the employer amounts to approximately 20.48% of gross pay, i.e. 984.28 PLN. Adding this to the sum of 4,806 PLN gives us the total cost of employment – 5,790.28 PLN. If the employee participates in the Employee Pension Scheme (PPK), an additional 1.5 per cent of gross pay (72.09 PLN) must be added to the employer’s contribution.

It is worth bearing in mind that indirect expenses must also be added to the employment costs: medical examinations and health and safety training, preparing the workstation, clothing and tools, as well as the costs of annual leave and sick leave.

Do all components of remuneration count towards the national minimum wage?

From 2026, a phased plan to exclude certain components from the minimum wage base will come into force. Until now, it has been possible to ‘top up’ the minimum wage with, for example, bonuses, position-related allowances or statutory awards. Under the amendment to the Act, from 1 January 2026, the position allowance will no longer be included in the national minimum wage, and in subsequent years bonuses and awards will also be excluded (the planned date for full exclusion is 2029).

In practice, this means that the basic pay of a full-time employee must not be less than PLN 4,806 gross. Allowances, bonuses and awards must be paid on top of this amount. This applies to both permanent staff and those on contracts of mandate, where a minimum hourly rate applies.

What are the implications of the national minimum wage increase for benefits and thresholds?

An increase in the minimum wage triggers a so-called domino effect within the pay and benefits system. For example, from 2026:

• The night work allowance will rise to 6.01 zł per hour (20 per cent of the hourly rate of the national minimum wage).
• The maximum severance pay in the event of collective redundancies will be 15 times the new minimum, i.e. PLN 72,090 gross.
• Compensation for discrimination or workplace bullying must not be less than 4,806 zł.
• The income limit for unregistered business activities will rise to 10,813.50 zł per quarter (225 per cent of the national minimum wage per quarter).
• The minimum health insurance contribution for self-employed persons will rise to PLN 432.54 per month (previously PLN 314.96), as the calculation will be based on 100 per cent of the national minimum wage.

All these changes are linked to the level of the national minimum wage, which is why any increase in it directly translates into rising costs for employers.

How does the increase in the minimum wage affect different forms of employment?

In 2026, the minimum wage applies not only to employment contracts but also to contracts for specific tasks and contracts for the provision of services to which the provisions on contracts for specific tasks apply. The minimum hourly rate here is 31.40 PLN gross. The employer or the party commissioning the work is obliged to guarantee this rate regardless of the number of hours to be worked in a given month.

In the case of contracts for specific work, there is no obligation to apply the minimum wage; consequently, these contracts are not subject to social security contributions, which makes them cheaper for businesses to manage. However, using civil law contracts solely to circumvent the provisions on employment contracts may result in serious sanctions – ranging from financial penalties to the obligation to pay outstanding benefits.

What are the most common mistakes in calculating employment costs in 2026?

In practice, many companies underestimate the total cost of employment by failing to take into account the employer’s share of social security contributions, contributions to the Employee Pension Scheme (PPK) or non-wage costs such as recruitment, training or staff absences. Seasonal or one-off expenses are also often overlooked. Example: if a company employs several staff on the minimum wage, an increase of PLN 140 gross translates to over PLN 2,000 in additional costs per person per year – not to mention the rising costs of benefits and allowances.

To avoid errors, experts recommend using up-to-date labour cost calculators and regularly reviewing the data in the light of legislative changes.

How can employment costs be optimised in accordance with the law?

Optimising employment costs in the face of a rising national minimum wage requires a strategic approach. In practice, companies utilise:

1. Flexible forms of employment – civil-law contracts, outsourcing, project-based work (whilst complying with labour law).
2. Non-wage benefits – sports cards, private healthcare, flexible working hours, training subsidies.
3. Utilising tax reliefs and exemptions – preferential social security contributions for start-ups, tax relief for employees aged 26 and under, and exemptions from the Labour Fund (FP) and the Guaranteed Employment Fund (FGŚP) for selected groups.
4. Automation and digitalisation of processes – implementing HR and payroll systems that enable better cost control and optimisation of team productivity.

It is also worth analysing whether the structure of benefits and incentive schemes is tailored to employees’ current needs, and whether there are any areas where savings can be made without compromising working conditions.

What are the obligations and risks for employers in 2026?

The obligation to pay remuneration at least at the minimum wage level applies to all employers hiring staff under employment contracts or civil-law contracts covered by the Act. Failure to comply with this obligation carries the risk of heavy penalties – a fine of up to 30,000 zł for employment contracts and up to 45,000 zł for civil law contracts, as well as the obligation to pay outstanding wages together with interest.

Employees may assert their rights both before the National Labour Inspectorate and in the employment tribunal. The limitation period for claims is three years from the date on which the remuneration became due. It is also worth bearing in mind that, from 2026, the thresholds for criminal liability for fiscal offences and the maximum administrative penalties will be raised.

What challenges does the rise in labour costs bring?

The regular increase in the national minimum wage and the total cost of employing a worker in 2026 present a challenge that is forcing companies to become more efficient and flexible. Some businesses will have to consider investing in automation, reducing staff numbers or raising the prices of goods and services. For others, higher wages may present an opportunity to attract and retain talent and build a competitive edge in the labour market.

A higher minimum wage also brings benefits for employees themselves – greater social security, higher benefits (e.g. sick pay, maternity pay), greater motivation to work and lower staff turnover. For companies that are already investing in digitalisation and modern management tools, the coming year may provide the impetus for further development and optimisation of HR processes.

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