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PLN 300 billion a year thanks to the greater participation of women in the labor market

According to the McKinsey report “Win-win: How to better harness the potential of women in the Polish economy”, Poland's GDP by 2030 could be 9% higher if women's professional potential were better utilized. This 9% represents the equivalent of almost PLN 300 billion per year.

PLN 300 billion a year thanks to the greater participation of women in the labor market

In addition to the macroeconomic value benefits, increasing diversity in companies can bring concrete benefits to businesses. According to a McKinsey study, having more women in leadership positions results in better financial results for companies. Companies with gender-diverse executives are 26 percent more likely to earn higher profits.

Interestingly, 81 percent of women — 11 percent more than men — admitted that career development is important to them (according to ManpowerGroup's “What Employees Want”). Women want to develop, work and occupy positions appropriate to their competencies and ambitions. What is the cause of the gender imbalance in the economy? According to the report “Win-win: How to better harness the potential of women in the Polish economy”, two factors are crucial:

  • 28% of women surveyed believe that gender makes it difficult for them to get a raise or a promotion;
  • 25% of women surveyed admit that they cannot develop a career due to an imbalance between private life and work (for comparison - only 7% of men admit the same).

In addition, McKinsey, in its “Women in the Workplace 2022” report, indicated that in 2021, only 87 women will be promoted out of 100 men who advance from core roles to managerial positions. As a result, men significantly outnumber women at the managerial level, and women cannot catch up with them.

Regulatory changes and the Work-Life Balance Directive come to the rescue

The introduction of new provisions in the Labour Code and amendments to other acts constitutes the implementation into Polish law of two directives, namely the so-called parental directive and work-life balance. The aim of these changes is to adapt to changing labour market trends and to introduce solutions that will make it easier for working parents to reconcile work and family life. First of all, this is about women, because as ZUS data show, in 2021 99% of women and only 1% of men took parental leave. One of the objectives of the amendment is therefore to achieve equal opportunities for women and men in the labour market, including equal treatment at the workplace and the fair sharing of childcare responsibilities between women and men.

Key changes

  • Paternity leave can be used by the father until the child turns 12 months old (it was 24 months early for this). The change is intended to encourage fathers to take their leave early so that they become active in caring for the child during the most important period of his life.
  • Extension of the dimension of parental leave, provided that the dimension of leave is provided for both parents. Parents have a lot of configuration options, as they can freely divide this holiday among themselves. For example, nothing prevents parents from dividing the leave into about 20 weeks for each and taking it at the same time. What you need to keep in mind is the fact that 9 weeks is reserved only for one of the parents (non-transferable part of this leave).
  • Facilitating women's decisions on the use of parental leave. Parents, right after childbirth do not have to immediately decide on the use of parental leave and the choice of options. The only thing a woman will have to do after giving birth is to decide on the amount of the allowance and possibly apply for a percentage of 81.5% (if such an option is decided). In turn, the application for parental leave itself can be submitted at a later time, at least 21 days before the day of the start of the leave. Parental leave is granted once or in no more than 5 parts, no later than the end of the calendar year in which the child turns 6 years old.
  • Independence of the right to parental leave from the mother of the child remaining in employment (insurance) on the day of birth (i.e. the father of the child, the employee will be able to take parental leave even though the child's mother was not in an employment/insurance relationship on the day of delivery).
  • New unpaid parental leave of 5 days per calendar year - to provide personal care or support to a person who is a relative (son, daughter, mother, father or spouse) or staying in a common household who needs care or support for serious medical reasons.
  • The introduction of a leave of absence due to force majeure — in the amount of 2 days or 16 hours per calendar year — in urgent family matters caused by illness or accident, if the immediate presence of the employee is necessary, with the right to half of the salary (calculated as vacation pay) for the duration of this dismissal.
  • Flexible work organisation option for employees who are parents or guardians and raise a child up to the age of 8.

Without a doubt, parental leave, including, above all, maternity leave, plays a significant role in family life. Maternity leave is very important for women, as it allows you to build a strong foundation for your children and family (therefore, maternity leave is also granted to employees from the vending machine with the day of delivery). By creating an environment where women are free to decide on further parental leave, and men are encouraged to become more active with family life through the new regulations, women will have more opportunities to further develop their professional opportunities after becoming a parent. What is important is also the possibility of combining the use of parental leave with the performance of work at the employer granting this leave in an amount not higher than half of the full working time (parental leave is then granted for the rest of the working time). Today, the law already gives employees a wide range of choices regarding the form and time of taking leave.

Additional benefits

Equal opportunities in the labour market for women and men, as well as greater involvement of men in family life, are benefits that will have positive effects for society as a whole. Equal opportunities in the labour market will give women greater financial independence and enable them to develop their professional careers. At the same time, greater involvement of men in family life helps to create stronger family ties and fosters positive role models for children.

Action within the framework of equality in the workplace (including equal pay) is more than just a competitive tool for employers in the labour market. It is also an opportunity to increase employee engagement, retain talent, enhance brand reputation and attract investors. The work environment is changing very quickly, but today's actions will undoubtedly have an impact on what happens in the future.

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