Poland still has one of the least expensive labor forces in the EU. Labor costs in Poland are four times lower than in Luxembourg, Sweden, Denmark and the UK, according to a report by HR consultancy Sedlak & Sedlak, which made use of Eurostat figures.

Source: Eurostat

Poland’s labor costs are thus still attractive for foreign investors, but local employers consider them to be too high.

“Polish entrepreneurs are not complaining about labor costs as such, but rather about total labor-related expenditures,” said Adam Ambrozik, an expert from the Confederation of Polish Employers (KPP).

“For every zł.1 paid to a worker, the employer has to pay zł.0.70 to the state in the form of different contributions. This frustrates employers and employees alike.”

Mr Ambrozik underscored that because Poland’s salary growth rate is greater than those of Western EU states, the gap between them has been narrowing. Thus, he and others warn that the Polish economy can’t afford to rely on cheap labor to attract investors.

“Looking at the pace of road infrastructure development in Poland, I see this as an area in which we could compete for foreign investments, rather than just with low salaries,” he said.