IT pay rising fastest outside Warsaw

More information on this topic is presented in the PMR report:

Wage pressures continue to build in Poland’s IT sector, as growing demand for manpower outstrips limited supply. Salaries in IT are more than twice the national average and rising at an accelerating pace. Working in Warsaw still pays the best, but IT professionals in other cities are seeing quicker growth in pay.

IT is very much an employee’s market in Poland, and IT professionals are among the best-paid workers. According to a new report from PMR, “IT labour market and salary structure in Poland 2018. Market analysis and development forecasts for 2018-2023,” the median gross monthly salary of an IT professional in Poland amounted to nearly PLN 10,400 (€2,400) in 2017, having risen by more than PLN 700 (€162) from the year before. (In 2016, the median IT pay increased by just under PLN 600 or €137). IT professionals earn way above the average salary: in 2017, the average gross monthly salary in the Polish economy was PLN 4,270 (€987).

Salaries in IT vary considerably depending on a range of factors, including specialty, position, experience, and location. Those with highly specialised or particularly in-demand skills and several years of relevant prior experience are particularly well remunerated. Also, salaries are highest in the biggest agglomerations, led by Warsaw, Krakow and Wroclaw.

Warsaw still tops the IT salaries chart, with the median at PLN 12,800 (€3,000), but salaries in other big cities are growing at a faster pace. This reflects the steady development and convergence of regional IT markets in Poland, with locations outside Warsaw gaining in importance. The capital’s already high levels of IT pay, its relatively greater manpower pool, and high degree of technological development are also helping constrain the wage pressure in Warsaw. According to our calculations, Wroclaw, Krakow and Poznan saw the biggest absolute increases in median IT pay in 2017, outpacing Warsaw’s by around PLN 100 (€23). IT professionals in the Tri-city and Szczecin also received higher pay rises than their Warsaw peers in 2017. Crucially from an IT pay perspective, all these five cities are attracting a lot of foreign direct investment, both in IT and other sectors. This is fuelling growth in IT pay in two ways: first, it increases the number of vacancies for IT professionals, adding to wage pressure; and second, foreign companies tend to pay IT professionals more than domestic companies, all other things being equal.

We expect the upward pressure on IT salaries in Poland to moderate gradually during 2018-2023, however. That’s because the IT pay gap between Poland and EU countries to its west keeps narrowing, as salaries in Poland rise while those in western EU countries are stable. The wage pressure will ease the most in Szczecin, Poznan, Krakow and Wroclaw, i.e. cities where IT salaries are growing particularly fast at the moment.

 


More information on this topic is presented in the PMR report:
IT labour market and salary structure in Poland 2018. Market analysis and development forecasts for 2018-2023elopment forecasts for 2018-2023