OECD data, converted at purchasing power parity (PPP) and expressed in constant 2024 prices, show clear changes in the European wage hierarchy. IN 1995. average A Pole earned the equivalent $21,256 annually. At the same time mediocre Briton he earned more than twice as much – $45,386., resident Italian — $49,665a Spain — $52,046
To this day, these proportions have changed dramatically. Polish earnings increased to $44,211., which means an increase of 108 percent British wages increased by 40 percent, while in Italy and Spain there was practically stagnation (increase by approximately 3 and approximately 5 percent, respectively). Even economic powers like Germany (increase by 22 percent) or France (by 27%), grew much slower than Poland.
In terms of the purchasing power of wages, we have already achieved 86.7%. Italian and 81 percent Spanish salary level. The distance to Great Britain shrank to approximately 30 percent, and in the mid-1990s the difference exceeded 100 percent.
wage growth rate between 1995 and 2004
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From hyperinflation to economic miracle
In 1990, the average salary was PLN 1.03 million (i.e. PLN 103 after denomination). Inflation exceeded 585 percent, which means that in 1991 you could buy as many products for PLN 103 as the year before for approximately PLN 15. In 1995, a denomination was necessary, in which 10,000 the old zlotys were replaced by one new one.
To understand the scale of the change, it is worth looking at specific examples. According to calculations by the Polish Economic Institute (PIE Economic Weekly, May 2019), in 1990 for a monthly salary could be bought 158 kg of rice, 40 kg of beef, 1030 eggs or 278 liters of gasoline.
Down 2017 purchasing power has increased significantly. You could buy anything for the same average salary 794 kg of rice (five times more), 90 kg of meat (more than twice as much), 4056 eggs (almost four times as much) i 647 liters of gasoline (more than twice as much).
Even more spectacular was the fall in prices of durable goods. In 1990, purchasing a bathtub cost an entire month's salary, while in 2017 it was just one sixth. payouts.
What drove wage growth?
— The strong dynamics of wage growth in Poland over the past 30 years is the result of several overlapping factors. First, the base level of wages was very low and was additionally driven by rapid GDP growth in 1995-97 – explains Dr. Wojciech Nagel, chief analyst of the Center for the World Economy of Cardinal Stefan Wyszyński University. — Cumulative GDP growth during this period amounted to nearly 18%.
The transformation of human capital turned out to be crucial. — Qualified staff, necessary during the transformation of companies and their privatization, began to enter the market. They were looking for specialists who were paid very well – adds the expert.
Another impulse was provided by Poland's accession to the European Union in 2004. — Right after accession, despite the global crisis in 2007, the economy developed without any obstacles – emphasizes the economist. The inflow of structural funds and foreign direct investments fueled development and demand for qualified employees.
The minimum wage policy turned out to be an important factor of the last decade. — Since 2015, the minimum wage in Poland has increased as a result of official decisions, from PLN 1,750 at that time to PLN 4,300 in 2025. This directly influenced the dynamics of wage growth in the economy explains Dr. Nagel. — According to the latest data, the median salary was nearly PLN 7,400. Relatively recently, this was the average wage in the economy, he adds.
Read also: They earn more than large companies, but they pay their employees little. Every fourth Pole works in micro-enterprises
20 years in the European Union. From 48 to 72 percent OECD average
At the time of Poland's accession to the European Union in 2004, average wages in Poland reached approximately 48 percent. OECD average — this was the level at which Hungary is today.
EU membership opened access to structural funds. According to data from the Ministry of Finance and the European Commission, in the years 2004-2024 Poland received EUR 245.5 billion from the EU budget, while paying EUR 83.7 billion. This translated into 161.6 billion euros in positive territory, which is the largest net amount among all member states.
This money was invested in infrastructure, education, innovation and business support. Effect? Data from PAP and the Ministry of Finance (balance sheet of 20 years in the EU, 2024) show that Poland's GDP doubled between 2004 and 2022a foreign investments increased sixfold – from EUR 67 billion to EUR 360 billion.
However, funds are not everything. Increasing labor productivity turned out to be crucial. According to the EY report from March 2025, in the years 2019-2024 it increased in Poland by 9.6 percentwhile in the United States – by 7.3 percent, and in Germany by only 0.7 percent. At the same time, France recorded a decline in productivity by 1.5 percent. Forecasts indicate that this positive trend will continue – until 2027, productivity will continue to grow, driven by, among others, by implementing artificial intelligence in business.
The British rub their eyes in surprise
The next “target” becomes Great Britain. The distance separating us from the United Kingdom has already decreased to approximately 30%. We are talking about a country to which, 10-15 years ago, Poles emigrated en masse for a better life. Today, economic emigration to Great Britain is no longer profitable.
Experts forecast that if the current growth rate is maintained, Poland has a chance to overtake Great Britain within the next decade. However, this is a scenario subject to several conditions. The key factors will be: further increase in the productivity of the Polish economy, the condition of Great Britain after Brexit, as well as the response to demographic challenges (including the growing employee deficit in Poland) and political and economic stability in both countries.
