Salaries to rise by 9% as Sejm cuts ZUS contributions

It means that net salaries will rise by 9%. The amendment was passed by Parliament unanimously. The deputies of the League of Polish Families agreed to support the amendment on condition that a tax allowance for families with children be introduced, a move which will cost the budget zł.2.7 billion. Although Finance Minister Zyta Gilowska was enthusiastic about the results of the vote, economists warn that the results of the amendments may not be all optimistic since higher salaries lead to increased consumption and inflation. "As a result the Monetary Policy Council may increase the interest rates more than the government expects," said Ryszard Petru, the chief economist with Bank BPH. (Rzeczpospolita, June 16-17, pp. A1, B1; Parkiet, June 16-17, p. 1; Gazeta Wyborcza, June 16-17, p. 1) E.B.