Poland wages rise rapidly: Does the economy become a danger to Austria?

Poland wages rise rapidly: Does the economy become a danger to Austria?

Wrocław, Polen - More and more Austrian companies are deciding to shift their business to neighboring Poland. Polish employees not only work by 25 percent more, but also cost 30 percent less than their Austrian colleagues. These alarming facts were confirmed by the President of the Lower Austria IV, Kari Ochsner, who had an urgent appealing to Austrian politics, to become active in order to counteract this worrying development. "It is no longer possible," says Ochsner, who expects concrete solutions to secure the competitiveness of domestic companies, such as krone.at reported.

rising wages and pressure on companies

Löhne in Poland increases under the pressure of dynamic economic growth, and in the first quarter of 2024 the average salary was already 1,900 euros, which corresponds to a full increase of 14.3 percent compared to the previous year. These developments are directly related to inflation and an increase in the minimum wage by 20 percent, with further increases for 2025. As GTAI , industries such as engineering and technology were particularly benefited, while IT specialists had to accept stagnating salaries. Nevertheless, Poland remains attractive in an international comparison, since the labor costs in 2023 were 14.50 euros per hour and therefore less than half of the EU average.

The salary differences between different regions of Poland are considerable. Employers in western Polish voivodities sometimes pay up to a quarter more than in the less developed Eastern Polish areas. These salary differences are particularly relevant for foreign investors, since large companies usually offer higher wages than local companies. The pressure on domestic industry for increasing efficiency and adapting to the changing wage environment is enormous, and companies have to develop creative strategies to remain competitive.