USA-China Tensions Transform Global Market

After the U.S. elections, relations between the...

Nearly half of working Poles expect salary increases in the coming months

CAREERSNearly half of working Poles expect salary increases in the coming months

According to the report “Salaries 2024: Expectations of Poles” conducted by Gi Group, 43.3% of workers received a salary increase in the second quarter of this year. At the same time, 42% of employees expect a pay raise in the coming months, while almost half do not anticipate such an increase.

Salary Levels in Poland

The study reveals that 43.3% of Poles received a salary increase in the second quarter of this year, which is 5.7 percentage points less than two years ago. Additionally, 45.8% reported that their salaries remained unchanged (an increase of 3.8 percentage points), while 11% of respondents indicated a decrease (down by 2 percentage points).

This year, both women and men reported increases or decreases in salaries equally in the previous quarter. Two years ago, more women (44% vs. 40% for men) indicated their salaries remained at the same level, while more men reported increases (52% vs. 45% for women). The study also shows that the percentage of individuals reporting salary increases decreases with age (59.2% among the youngest, 34.7% among the oldest), while it increases with higher education levels. Respondents earning over 5,000 PLN net per month (52.9%) more frequently reported a salary increase than those earning up to 2,000 PLN (30.4%). The increase was mainly observed among residents of the eastern region of the country.

“It is worth noting the clear decline in the growth rate of the average salary. In August of this year, it amounted to 8,190 PLN gross, which is 11% higher than the previous year. In the coming months, this growth rate will likely reach a single-digit result,” comments Agnieszka Zielińska, Director of the Polish HR Forum.

Are Salaries Going Up or Down?

“Pressure in the area of salaries is evident. This is understandable due to the rising prices of goods and services, along with the increasing cost of living. Employees want their purchasing power not to decline. Not only do they want this, but they also work more than the European average—according to Eurostat data, they spend an average of 40.4 hours a week at work. They are also prudent, as confirmed by the results of our recent study ‘How Poles Supplement Their Income.’ It shows that as many as 45% of them take on tasks outside their main job, and almost 60% want to continue or start additional work in the coming months,” comments Marcos Segador Arrebola, Managing Director of Gi Group Holding.

The study indicates that nearly half (48.8%) of Poles expect their salaries to remain at the current level in the upcoming months. A slightly smaller percentage looks to the future with optimism—42.4% of employees expect a salary increase. Meanwhile, 9% of employed individuals fear a decrease.

More men (44%) than women (41%) expect raises. Expectations decline with age, with 32% of individuals over 50 anticipating a salary increase, compared to nearly 61% of employees under 24. The generational difference is nearly twofold. Education level has less influence on expectations; 45.1% of those with vocational education expect raises, while 41.6% of university graduates do.

Residents of major cities (46.1%) and those working in the northern region and Mazowieckie Voivodeship expect higher salaries—nearly 48% of surveyed individuals in these areas anticipate an increase. In contrast, those working in the southern region expect raises much less frequently (33.1%).

“Employee expectations regarding salary increases will persist, and may even rise in some sectors. This is linked to high living costs, significant increases in the prices of goods and services, and household burdens. Although the minimum wage has been raised recently, this has not always translated into a successive increase in salaries for higher-qualified employees or those with longer work experience. As a result, a flattening of the wage structure is observed, which negatively affects employee motivation,” explains Prof. Grażyna Spytek-Bandurska, an expert at the Federation of Polish Entrepreneurs.

While this year, women and men equally anticipate increases or decreases in salaries, two years ago, significant differences were evident. In 2022, women primarily indicated maintaining the same salary level (58% vs. 44%), while men more frequently expected increases (47% vs. 36%). Differences are also visible regarding the age of respondents—older individuals are less likely to expect raises. However, the change in attitude among the youngest generation is noteworthy. Two years ago, 51% of respondents under 24 expected increases, while now they account for 60.6%. Comparisons with the study from two years ago also show that there are no significant differences in expected salary changes based on education levels.

“Companies continue to approach changes in recruitment and compensation with great caution, adapting their actions to the current market situation. This year’s minimum wage increases have impacted a significant group, not just the lowest earners—some companies raised salaries to avoid flattening wages and employee dissatisfaction or turnover. Another increase is planned for 2025, which will necessitate raising other salaries as well, particularly for specialists with rare competencies and individuals with significant experience, who would be difficult to replace within the organization. Maintaining an effective salary policy will be challenging, given rising operational costs and the fight for profitability,” comments Marcos Segador Arrebola, Managing Director of Gi Group Holding.

About the Study

The study was conducted by SW Research using the CAWI method on the SW Panel internet panel. A total of 1,169 surveys were conducted, involving a representative group of respondents by gender, age, and place of residence, including 837 surveys with employed individuals. The respondent group consisted of Poles aged 18 and older, following the distribution of gender, age, and settlement size. The survey was conducted between August 1 and August 8, 2024.

Check out our other content
Related Articles
The Latest Articles