Soaring labor costs in Poland

Recent months have brought a significant increase in labor costs in Poland. This is caused by an unfortunate coincidence of several factors. The already present relatively high inflation was exacerbated by the impact of the tax and social security reform under the so-called Polish Deal, an increase in minimum wage, the NBP’s interest rate hikes that have significantly raised the credit burden, as well as a worsening of the socio-economic environment due to the war in Ukraine that started at the end of February.

More details available in our Alert.