This paper presents the selected results of the wage setting survey among over 1200 firms that was carried out in Poland in November 2007. Similar surveys were conducted in 17 countries as part of the ECB Wage Dynamics Network project. We present a selection of results in order to assess the determinants of flexibility of wages and employment in Poland in comparison with other EU countries. The results of the survey have been used to measure the wage and employment flexibility in Poland and their potential consequences for the accession of Poland to European Monetary Union (EMU). According to the results, firm in Poland seem to be close to average in terms of downward nominal wage rigidity but have relatively flexible real wages. The role of labour market instructions in wage setting process is limited because of weak trade unions in the commercial sector, relatively small coverage of collective agreements and relatively low minimum wage. Companies declare that reduction in employment is more important than reduction in wages as a cost-saving measure but majority of companies try to reduce other non-labour costs first. The possible accession to the EMU would increase the importance of labour cost channel as a way to adjust to asymmetric shocks. That could result in more volatile employment fluctuations. EMU accession could also lead to slower real wage adjustment as the inflation target in EMU is lower than in Poland. It appears that the best way to prepare for the labour market consequences of the accession to the EMU, is to improve the efficiency of employee-employer matching and to introduce polices aimed at avoiding the skill loss and discouraged worker effect among the unemployed in the periods of temporary higher unemployment. However this kind of reforms are worth to be introduced even without joining EMU.