Tripartite Commission discusses private and public sector pay increases

Trade unions, employers and the government have, as usual, failed to reach an agreement on salary increases, as a result of which wages in the public sector as well as the minimum wage shall increase by 3% next year, in line with the government proposal. Meanwhile, the government and employers' organizations agreed on the benchmark salary increase in the private sector at 4.5%, although trade unions had sought a figure of 5.5%. One thing the Tripartite Commission did agree on yesterday, was to continue working on lowering the income tax burden on employees with the lowest incomes. This proposal will be a part of the government's National Plan for Employment to be unveiled shortly. However, although Economy and Labor Minister Jerzy Hausner is keen on introducing the tax incentive, Prime Minister Marek Belka and Finance Minister Mirosław Gronicki indicated that they are unwilling to introduce any changes in the tax system next year, which could delay introduction the measure to 2006. (Gazeta Wyborcza, p. 25) T.J.