21:44 5 February 2020
Labor costs weigh on construction companies in Poland more than ever
Business confidence among Polish construction companies tumbled early this year, with the heaviest burden, as perceived by the enterprises, coming from labor costs and tax levies. The decline in confidence is chiefly due to such factors as an over 15 percent increase in the minimum wage and a 10 percent hike in social insurance contributions faced by sole traders operating in the construction industry. On top of that, large construction businesses are required to conduct Employee Capital Schemes (PPK) or the alternative solution of Employee Pensions Schemes (PPE).
According to the latest monthly report by research company Spectis, this practically means that the times of low-budget construction are over for good, and 2020 will be marked by rising labor costs.
(WBJ)
