Support for PPK - Employee Capital Plans

PPK - Employee Capital Plans is an instrument of voluntary and universal saving supported by the state in order to allow additional savings in the long term for all employees. The universality and joint distribution of burdens and obligations, as well as the ease of saving makes the PPK an opportunity for employees in accumulating additional funds, as well as an opportunity for employers to use PPK as a tool to increase the level of trust in the company, increase its attractiveness and motivation of employees. In global terms, the accumulation of savings will strengthen the capital market and should become an additional development impulse for the Polish economy.

Legal basis - Act of October 4, 2018 on employee capital plans Dz. Of Laws of 2018, item 2215, from 2019 item 1074, 1572.

Employer

Obligations arising from the Act

- Article 7 point 1 Acts on PPK

The employing entity concludes a PPK management contract if it employs at least one person employed on behalf of which, pursuant to the provisions of Chapter 3, it is obliged to conclude a contract for running PPK.

- Article 13 point 1 Acts on PPK

The provisions of the Act shall not apply to:

  • Micro-entrepreneurs * referred to in Article 7 (1) (1) of the Act of March 6, 2018 -The right of entrepreneurs (Journal of Laws items 646, 1479, 1629, 1633 and 2122), if all employed persons submit to the employing entity the declaration referred to in Article 23 (2)-przepisy Article 23 (5) and (6) shall apply accordingly;
  • an employing entity that is a natural person who employs, to the extent not related to the economic activity of that entity, a natural person, to the extent not related to the economic activity of that person

micro-entrepreneur * - an entrepreneur who in at least one year of the last two financial years met the following conditions jointly:
a) employed, on average, less than 10 employees in a year, and
b) achieved an annual net turnover from the sale of goods, products and services and from financial operations not exceeding the PLN equivalent of EUR 2 million, or the sum of its balance sheet assets prepared at the end of one of these years did not exceed the equivalent of PLN 2 million.

Employee

Rights arising from the Act

- Article 23, points 1 and 2 Acts on PPK

  1. Participation in the PPK is voluntary. The provisions apply to the employed person Article 18³ª §1-5 of the Act of June 26, 1974 -Labor Code. The obligation of equal treatment set out in these provisions also applies to an employed person, regardless of whether he or she is a PPK participant.
  2. A PPK participant may opt out of making payments to PPK on the basis of a declaration submitted to the employing entity in writing. The declaration contains data on the employing entity and the PPK participant and a statement of the PPK participant about his knowledge of the consequences of its submission. Resignation from making payments to PPK does not require an amendment to the PPK contract.

Employee Capital Plans - our service offer - stages of action

Employee Capital Plans - PPK management contract

- Articles 7 to 13 Acts on PPK

  1. Contract conclusion mode.

The employing entity selects a financial institution in consultation with the trade union organization. If a trade union organization does not operate in the employing entity, the choice of financial institution shall be made in consultation with the representation of the employees. Such representation is emerging in the manner adopted in a given employing entity. If, one month before the expiry of the period during which the employing entity is obliged to conclude a PPK management agreement, no agreement is reached, the employing entity selects a financial institution based on the assessment resulting from the analysis of the conditions proposed by the financial institutions regarding the proposed conditions for managing resources, their effectiveness in asset management and experience. The choice must be guided by the interests of employees.

  1. Date of conclusion of the contract.

Not later than 10 business days before the day on which the first employee is obliged to conclude a contract. This deadline was specified in art.16 of the Act on the day no later than on the 10th day of the month following the month in which the period of 3 months of employment expired, unless the employed person declares not to make payments to PPK on the basis of a declaration before this period expires or ceases to be in relation to that employing entity employed person.


Transitional deadlines in connection with the entry into force of the Act

Employment volume *
(at least)
Deadline for joining PPK **Date of conclusion of the PPK management contract
(no later than by)
250July 01, 2019.25 October 2019
5001 January 202024 April 2020
20July 01, 2020.27 October 2020
Other employers01 January 202123 April 2021

* - applies only to employees of the employing entity as at the date of joining PPK

** - it is only from that day that a PPK management contract can be concluded


As part of the service offer, we enable the conclusion of an online contract with selected financial institutions.

Employee Capital Plans - Contract for running PPK

- art.14 Act on PPK

  1. The employing entity concludes, on behalf of and for the benefit of persons employed in the entity employing the contract for running PPK ......

Transitional deadlines in connection with the entry into force of the Act

Employment volume *
(at least)
Date of concluding the PPK contract
(no later than by)
250November 12, 2019
50May 11, 2020
20November 10, 2020
Other employersMay 10, 2021

* - applies only to employees of the employing entity as at the date of joining PPK


The PPK program can be used by employees who are subject to compulsory retirement and disability insurance in this respect in Poland. Therefore, they will include both employees employed under an employment contract and contractors who are over 18 years of age, as well as members of supervisory boards remunerated for performing these functions. Foreigners employed in Poland can also use PPK.

Information obligations towards employees

The employed person should be informed by the employer of:

  • the possibility for an employed person who is 55 or older to submit an application for concluding a PPK contract,
  • an obligation to submit on its behalf an application for transfer payment of funds accumulated on her PPK account maintained by a financial institution, whose PPK management contract was terminated by the employing entity, on its PPK account, kept by another financial institution.

Information obligations towards PPK participants

The PPK participant is informed by the employing entity about:

  • an obligation to submit on his behalf an application for transfer payment of funds accumulated on his PPK accounts kept by financial institutions with whom PPK contracts were concluded on his behalf and on behalf of other employing entities, on his PPK account maintained by a financial institution with which a contract for running the PPK was concluded by this employing entity (if the PPK participant submitted to the employer a statement on contracts concluded on his behalf for conducting PPK concluded by other employing entities),
  • the possibility of declaring an additional payment and the possibility of reducing the basic payment (from 2% to not less than 0,5% of gross remuneration),
  • re-making payments to PPK, if the participant submitted a declaration of resignation from making payments to PPK (obligation fulfilled from 1 January 2023 every 4 years by the last day of February in a given year).

As part of the offer, we prepare a list of PPK participants in accordance with the provisions of the PPK Act and send it to a selected financial institution. A PPK contract will be concluded for all persons (except those who have submitted a declaration of resignation from making payments).

After concluding both types of contracts (one-off activity), the employing entity has a monthly obligation:

  1. Calculating the amount of payments, for which the basis is the amount of contributions for the retirement and disability insurance of a PPK participant in the part financed by:

  • employing entity - basic payment in the amount of 1,5% of the base. He may also declare in the PPK management contract an additional payment of up to 2,5% of the base (the additional payment may be differentiated in the manner specified in the remuneration regulations or collective agreement).
  • employed PPK participant - the basic payment is 2% of the base, but not less than 0,5% of the base, if the PPK participant's remuneration obtained from various sources in a given month does not exceed the amount corresponding to 120% of the minimum remuneration. A PPK participant may declare an additional payment of up to 2% of the base.

Payments are calculated and collected at the time the salary is paid.

  1. Information on payments made to:

  • Financial institution
    • The employing entity notifies the selected financial institution of:
      • submission by the PPK participant of a declaration of resignation from payments to PPK,
      • re-making payments for a PPK participant who previously submitted a declaration of resignation from making payments to PPK, and after 4 years was automatically re-enrolled in the PPK,
    • It transfers to the Financial Institution both basic and additional contributions by the 15th day of the next month after the month in which they were calculated on the date of payment of remuneration.
    • It submits monthly information together with the payment of contributions about the amount of payments collected, broken down into contributions of the employing entity and the PPK participant for each participant separately.
  • ZUS
    • The employing entity notifies the Social Insurance Institution in the ZUS RCA report about the amount of tax revenue arising in connection with the financing by the employing entity of payments made for a participant. The employing entity shows these payments in the ZUS RCA personal monthly report.

The amount paid by the employing entity on PPK is an additional income of the participant exempt from ZUS contribution, but taxed with income tax.

Odpowiedzialność criminal entity of the employing entity

The provisions of the Act on Employee Capital Plans list three cases of the employer's failure to meet the obligations arising from the offer and establishment of PPK, together with specific financial penalties.

  1. Failure to conclude a PPK management agreement on time - a financial penalty in the amount corresponding to 1,5% of the employer's remuneration fund in the financial year preceding the act.
  2. Failure to conclude an agreement on running PPK on time, including: failure to make payments to PPK on time, failure to report data provided for in the Act, reporting false data, providing false explanations or refusal to provide them, not keeping documentation related to payments to PPK - financial penalty in the amount from 1.000 PLN to 1.000.000.
  3. Encouraging employees to resign from PPK - a financial penalty of 1,5% of the employer's remuneration fund in the year.

using our new offer You can protect yourself from criminal liability and ensure proper functioning of the PPK program in your unit.

We invite you to cooperation.