The Employee Capital Plans is a system created last year for the purpose of long-term joint savings that involves employee, his employer and the State. Find out more about the rules of their functioning.

Every company or institution that employs at least one employee should create Employee Capital Plans (PPK – Pracownicze Plany Kapitalowe) – except from the matters specified by the act (cf. article 13, paragraph 1 and article 133, paragraph 1). It’s a voluntary and completely private system of long-term savings that aims at increasing the financial security of Poles. To the PPK account will be transferred contributions from employee (remuneration deductions), employer and the State. It is an obligatory element of benefit packages for employees.

The Act is required to be applied by:

• companies employing at least 250 people as of 31 December 2018;
• companies employing at least 50 people as of 30 June 2019; the deadline for concluding a management contract is 27 October 2020; the deadline for concluding a contract to carry out PPK activities is 10 November 2020;
• companies employing at least 20 people as of 31 December 2019; the deadline for concluding a management contract is 27 October 2020; the deadline for concluding a contract to carry out PPK activities is 10 November 2020;
• for other entities: contract for the management of PPK until 23 April 2021; a contract to carry out PPK activities - no later than 10 May 2021.

 Schedule for introducing Employee Capital Plans

 Within the binding deadline, the employer must create a PPK for employees. In order to do this, the employer concludes:

• a PPK management contract with a financial institution selected in agreement with the trade union organization;
• a contract to carry out PPK activities on behalf of and for the benefit of employees.

 If there is no trade union organization within a company, the employer selects a financial institution in agreement with the representation of employees. The selection of such a representation follows the rules adopted in a company.

 Managing entities offering PPK can be found at: https://www.mojeppk.pl/lista-instytucji-finansowych.html

 Participation in the PPK system is voluntary. The employee may resign from making payments to the PPK at any time by submitting to his employer a declaration of resignation from making payments to the PPK.

The employer's and employee's contributions to PPK are calculated as a percentage of the employee's remuneration. The employer is obliged to finance the basic payment but may decide to finance the additional payment as well, but not higher than 2.5% of the salary. The state, in turn, will pay fixed amounts (after meeting the appropriate conditions) - regardless of the employee's income.

The amount of contributions financed by the employer:

• basic contribution (obligatory): 1.5% of remuneration;
• additional payment (voluntary): up to 2.5% of remuneration.

The Act on Employee Capital Plans specifies the following obligations of the employer:

• selection of the financial institution where the PPK accounts for employees will be created;
• signing a PPK management contract with a selected financial institution and a contract to carry out PPK activities on behalf of and for the benefit of employees,
• correct calculation of the amount of payments and their prompt transfer to the selected financial institution;
• collecting and archiving documentation on PPK;
• providing employees and a selected financial institution with information related to the created PPK.

Thanks to the PPK system, companies make a measurable contribution to the long-term building of private employee savings. In order to minimize the burden on employers, the method of creating PPK has been simplified for them as much as possible. Most of the administrative duties, including those related to the service of PPK participants, will rest with the financial institutions managing the PPK.