Poland Is Trying to Put a Cap on Central Bank Salaries

(Bloomberg) -- Poland’s lower house of Parliament passed legislation to cap salaries at the central bank, defying a warning by the monetary authority that it may limit its independence.

The ruling Law & Justice party drafted the planned law after a pay scandal at the central bank that ignited worry inside the government about the need to avoid a public backlash before autumn general elections.

The European Central Bank issued an opinion on Wednesday saying that any cuts in remuneration of central bank staff shouldn’t compromise its ability to employ and retain people. It also said that sanctions for non-compliance with the duty to disclose financial assets shouldn’t establish new grounds for dismissing board members.

Media outcry erupted after reports of excessive wages paid to the closest aides of Governor Adam Glapinski, who presides over the panel responsible for Poland’s monetary policy. He has denied any wrongdoing and has dismissed talk that he may resign.

The central bank itself rejected as false reports that Glapinski’s top aide earns 65,000 zloty ($17,301) a month, about four times the prime minister’s base salary. It has declined to release details of specific employees’ earnings, giving only average salaries for workers of a similar seniority.

The bill needs to be approved by Senate and the President before it takes effect.

To contact the reporter on this story: Marek Strzelecki in Warsaw at mstrzelecki1@bloomberg.net

To contact the editors responsible for this story: Andrea Dudik at adudik@bloomberg.net, ;Maciej Onoszko at monoszko@bloomberg.net, Michael Winfrey, Andrew Langley

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