Minimum wage increase will be neutral for GDP growth - MF

The increase in the minimum wage in 2020 to PLN 2,600 will be neutral for the dynamics of Poland's GDP - the Ministry of Finance (MF) wrote in response to a parliamentary question. The Ministry specified that a negative impact on the supply side will be compensated by the positive impact on the demand side.

The Ministry added that the complexity of economic dependencies makes it impossible to "precisely quantify" the impact of raising the minimum wage, but its effect on inflation is expected to be not more than 0.1 percent.

(PAP)