– We have prepared a budget for construction and strength – this is how Prime Minister Donald Tusk described the draft budget act for 2025 adopted on Wednesday by the Council of Ministers. Record spending will be allocated to safety, health care and infrastructure. And what about education? As Andrzej Domański, the Minister of Finance, informed, teachers can expect a 5 percent raise, or rather indexation like the entire so-called budget, i.e. as much as the forecasted inflation next year. – This year, the raises for teachers amounted to 30 percent. At the moment, we want the real value of their salaries not to fall – declared the Minister of Finance. (update)
Teachers’ salaries next year were originally supposed to be raised by 4.1 percent. Minister of Education Barbara Nowacka applied to the Ministry of Finance for 10 percent. ZNP demanded a 15 percent raise for teachers. Ultimately, the draft budget included 5 percent.
– There will be a budget meeting, one, two, I hope that the pay rises for teachers will be more than 4.1% – said the head of the Ministry of National Education on Monday on Radio Zet. – I am talking to the Minister of Finance, he knows how important Polish education is and we will strive to make it worthwhile to be a teacher – she assured.
Let us remind you that the current basic salary rates for teachers are:
>> beginner teacher – PLN 4,908 gross/ PLN 3,675.95 net (net);
>> tenured teacher – PLN 5,057 gross/ PLN 3,776.95 net;
>> certified teacher – PLN 5,915 gross/ PLN 4,362.69 net.
“The ZNP expects urgent processing of the citizens’ bill, which will regulate teachers’ salaries in a systemic manner. The bill assumes linking teachers’ salaries to the average salary in the economy. Such a solution will make salaries independent of political arrangements and decisions!” – we read, among others, on the Union’s Facebook page.
“A teacher’s assistant, basic education, PLN 4,250, minimum basic salary, 20% bonus, is already PLN 5,100, plus in Warsaw PLN 250, a supplement for a teacher’s assistant, is already PLN 5,350, some seniority is already about PLN 6,000. A beginner teacher, PLN 4,908, plus a 5% raise, i.e. 245, gives PLN 5,153, there is no seniority, and let the motivational bonus be PLN 347, so what! that gives PLN 5,500, a higher master’s degree with pedagogical preparation. WELCOME TO THE SCHOOL OF ABSURDITY,” commented Urszula Woźniak, vice-president of the ZNP Main Board, on ZNP FB.
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During Wednesday’s press conference of Prime Minister Donald Tusk and Minister of Finance Andrzej Domański, the draft budget act for 2025 was announced, which was adopted by the coalition government. This is the first original financial plan of Donald Tusk’s government.
– The budget is ready and it is not the easiest situation – said the Prime Minister, pointing to the war or the state of the country inherited from his predecessors from PiS.
LIVE | Press conference of Prime Minister Donald Tusk and Minister of Finance Andrzej Domański.
— Chancellery of the Prime Minister (@PremierRP) August 28, 2024
The Prime Minister assured that this is a “generous” but responsible budget. – Next year’s budget is an increase in spending on armaments and defense – he explained.
– In 2025, inflation will be under control, there will be record economic growth, and the minimum wage will increase in real terms – the head of government announced. He indicated that economic growth in 2025 will amount to 3.9 percent. These are more optimistic forecasts than the June assumptions of the Ministry of Finance indicated.
– This is a budget of construction and power – the prime minister argued. He said that over PLN 186 billion (4.7 percent of GDP) had been allocated for defense, and “we will build everything that is necessary for security reasons.” – Health will be equally important, spending on it will increase to PLN 222 billion.
Premier @DonaldTusk w #Chancellery of the Prime Minister: In 2024, we adjusted the budget after our predecessors. Despite this, we not only provided financing #800plusbut we decided on record-high pay rises for teachers, a 20% increase for the entire budget sector, we recently adopted such…
— Chancellery of the Prime Minister (@PremierRP) August 28, 2024
The head of the Ministry of Finance, Andrzej Domański, announced that the deficit will amount to 5.5% of GDP. Excluding the Covid-related 2020, there has not been such a large deficit in relation to GDP since 2010.
In nominal terms, it will amount to PLN 289 billion, which is a record level. The Minister explained what this results from. – This increase includes the statutory increase in health expenditure, the lack of profit payment from the NBP compared to the expectations from the act for 2024. If we compared “apples to apples”, the deficit in conditions comparable to 2024 would amount to PLN 181 billion – he said.
📰 ANNOUNCEMENT | Record spending on defense and health, benefits for citizens, economic recovery, GDP growth by 3.9% and a drop in unemployment – these are the main directions of fiscal policy next year. pic.twitter.com/eQ2VDOARBc
— Government Information Center (@KPRM_CIR) August 28, 2024
Budget revenues in 2025 are to amount to PLN 632.6 billion. The government expects VAT revenues to increase by PLN 50 billion, CIT by PLN 9 billion and excise tax by over PLN 8 billion.
– Inflation is significantly lower, we expect it to be below 4% in 2024 – Andrzej Domański emphasized. However, he indicated that 2025 will be different. – Inflation will rebound next year and reach 5% – he admitted. The good news is that average wages will also increase. According to the data provided, they will grow at a rate of 7%.
In mid-June, the government adopted the assumptions for the draft budget for 2025. The Ministry of Finance predicted that GDP growth in 2025 would amount to 3.7%, and average annual inflation would amount to 4.1%. It was assumed that registered unemployment at the end of 2025 would reach 4.9%. It assumed that wages in the national economy would increase by 7.1%, and in the corporate sector itself by 7.3%. The government then proposed an average annual wage growth rate in the state budget sector in 2025 of 4.1%.
The government has until 30 September 2024 to pass the final draft budget act for the next year and submit it to the Sejm, along with a justification. In accordance with the budget procedure presented on the website of the Ministry of Finance, the ministry prepares a preliminary draft budget in August. It is then sent to the Council of Ministers and submitted for opinion to the Social Dialogue Council.
– We still have a long way to go until the finale, i.e. the president’s signature – said the head of government. – I expect some turbulence in the work on the budget – he added.
Details of the draft budget for 2025 can be found here here. The document is to appear on the website of the Government Legislation Centre on Thursday.
(GN)
Photo: Chancellery of the Prime Minister
Minister Nowacka: “We will strive to make it worthwhile to be a teacher”
Joint position of the largest trade unions on the assumptions of the draft budget for 2025.
Government on the budget for 2025, increases for the public sector, minimum wage and pension indexation
