Starting August 6, changes may begin to occur in the labor market. This is due to the new president, Karol Nawrocki, who has announced that on his very first day in office he will submit to the Sejm legislative proposals implementing the key elements of his electoral program. The new president has pledged a policy focused on strengthening the economic situation of families, supporting entrepreneurship, and developing local infrastructure. For employers and employees, this means potential changes in the legal and financial environment that could influence personnel, investment, and wage decisions.
The direction chosen by Karol Nawrocki aims to break down barriers to economic development by simplifying the tax system, increasing citizens’ disposable income, and stimulating local investments. In theory, this opens new prospects in the labor market and creates opportunities for both entrepreneurs and employees. However, the key will be how these assumptions are implemented in practice.
Tax Contract – Simplifications and Reliefs
One of the president’s first actions is expected to be submitting a bill to reduce the basic VAT rate from 23% to 22%. According to Nawrocki’s plans, lowering this rate should bring real savings to consumers and reduce inflationary pressure. At the same time, a package of tax laws has been submitted to the Sejm, including introducing zero PIT (personal income tax) for families raising at least two children—up to an annual income of 140,000 PLN per parent. The president also promises to raise the second tax threshold to the same level and eliminate the capital gains tax (the so-called Belka tax) up to the annual limit of 140,000 PLN. Tax reliefs will also cover pro-family entrepreneurs regardless of the taxation form—both linear and lump-sum. The payment system is to be simplified as well: health insurance contributions, social security (ZUS), and PIT will be paid in a single transfer. Nawrocki also stated he will not sign any law that raises taxes for citizens.
“This signals to the market that the fiscal environment should be predictable, and the tax system simpler and more friendly to workers and entrepreneurs. Transparency and stability are key values in the economy, especially during global volatility,” says Cezary Maciołek, labor market expert and CEO of Grupa Progres. “From employees’ perspective, simplification may improve motivation and a sense of security, but there is a risk that the changes won’t translate into real wage growth or employment stability. For entrepreneurs, it’s a chance for easier planning and development but also a challenge related to quickly adapting to new regulations and the complexity of using tax reliefs, which don’t always guarantee automatic increases in employment or investments. Moreover, not every company will be able to afford wage increases, which may limit the positive effects of these changes on the labor market,” Maciołek adds.
Pensions to Increase
Recent data from the Social Insurance Institution (ZUS) show that the number of pensioners in Poland is steadily growing—with 100,000 more pensioners between December 2023 and December 2024, reaching 6.366 million recipients in May 2025. The average gross pension is also rising—throughout 2024 it was 3,862.61 PLN and reached 4,189.54 PLN in May 2025, despite seasonal fluctuations after the March indexation which increased benefits by about 250 PLN. The president announced that during his term, pension indexations will guarantee increases of at least 150 PLN annually and always exceed the pace of price growth.
The “Big Four” Development Projects and Local Investments
Regarding economic development, Karol Nawrocki announced the implementation of the so-called “Big Four” projects: the Central Communication Port, nuclear energy, port expansions, and creation of new investment zones. In parallel, a local investment program will be launched—covering modernization of roads, schools, sewage and digital networks, and building bike paths in every municipality in Poland. According to Nawrocki, local investments are contracts for Polish companies and jobs for people from every Polish municipality. Low, simple, and pro-family taxes—the tax contract—are also meant to support this development.
“Implementing such ambitious plans is not without challenges. Coordination across various administrative levels may face bureaucratic obstacles, and shortages of qualified labor in sectors like construction and energy may slow investment progress,” notes Cezary Maciołek, CEO of Grupa Progres. “Furthermore, global economic fluctuations and market uncertainty may impact costs and material availability, potentially increasing project costs or causing delays. Therefore, not only program launches but also effective risk management and flexible strategy adjustments to changing conditions will be crucial,” the labor market expert adds.
Migration Policy – Yes, But…
Announced changes also include Poland’s withdrawal from the EU Migration Pact and actions to increase border security in the context of illegal migration.
“Migration policy is today a key factor affecting many Polish companies’ personnel decisions. It must be well regulated and effectively fight illegal migration and the gray labor market, but ignoring the impact of political decisions and politicians’ attitudes on the labor market can seriously limit access to qualified workers, especially in sectors with labor shortages. Therefore, it is vital that not only government officials but also entrepreneurs have a real voice in shaping these policies and that the state supports them by simplifying procedures and integrating foreigners,” emphasizes Cezary Maciołek.
A recent Grupa Progres survey shows that 28% of firms in Poland admit that decisions to employ foreigners depend on migration policy and politicians’ attitudes. Meanwhile, 55% of employers plan to increase foreign worker employment, but over 70% see an urgent need for state support.
Employers primarily expect shorter procedures (55%) and simpler regulations (43%), as well as subsidies for employers hiring foreigners (45%). Additionally, 38% indicate the need to launch integration programs, such as funding Polish language learning, citizenship courses, or extending employment periods to 18 or 36 months. Despite growing interest in hiring foreigners, only 43% of companies know the assumptions of the new 2025–2030 migration policy, meaning 57% remain unaware. Furthermore, the vast majority of employers (72%) believe they should have real influence on migration policy formation.
The changes announced by the new president create a real opportunity for economic revival and improvement of labor market conditions, especially through tax simplification, family support, and local investments. However, the success of these reforms will largely depend on effective and consistent implementation, openness to dialogue with entrepreneurs, and flexible strategy adjustments to changing economic conditions. Equally important will be addressing labor market needs, particularly in migration and hiring qualified workers. Only a comprehensive approach combining fiscal stability, investment support, and effective migration regulation can bring sustainable development and increase Poland’s competitiveness internationally.
About the survey:
The survey was conducted by Grupa Progres in June and July 2025 among 600 representatives of companies operating in Poland. Respondents were decision-makers in employment matters—owners, board members, HR directors, and managers responsible for personnel policy. The survey aimed to identify barriers and needs related to employing foreigners, assess readiness for integrating foreign employees, and examine awareness of national migration policy. The companies surveyed represented sectors frequently employing foreigners—industry, logistics, production, construction, agriculture, HoReCa, and services. Both micro, small, medium, and large enterprises from various Polish regions participated, enabling capture of diverse perspectives and experiences. The study was quantitative, mainly through questionnaires.
