Employee Capital Plan (PPK)
On January 1, 2019 the Act On Employee Capital Plans (PPK) came into force (hereinafter, the ”Act” or the ”PPK Act”) and imposed an obligation on employers to launch PPK schemes in their organizations (the deadline for implementation depends on the company size). In practical terms, this means that between July 1, 2019 and January 1, 2021 different groups of employers (from the biggest to the smallest ones*) were gradually required to implement PPKs and enrol their employees in the plans.
* The following employers do not have to join the Employee Capital Plan:
- employers who introduced Employee Pension Programmes, calculate and pay the basic contribution for their employees (for at least 25% of employees) in the amount of at least 3.5% of remuneration within the time limits specified in the Act on Employee Capital Plans,
- employers who are natural persons conducting business activity and employ natural persons to the extent not related to their business activity and the business activity of these persons,
- employers who are micro-entrepreneurs referred to in Article 7(1)(1) of the Act of 6 March 2018 – Entrepreneurs’ Law (Journal of Laws, item 646, as amended), if all persons employed, who are 18 and under 55 years of age, submit a declaration on the resignation from contributions to the employing entity, and none of the persons over 55 years of age and under the age of 70 has not submitted an application for the conclusion of a PPK contract for them.
An employer who has implemented PPK and then PPE and pays basic contributions to PPE in the amount of at least 3.5% of salary, may, in agreement with the trade union organization, not finance contributions to the PPK for employees who joined the PPE (for a month following the month in which the PPE was registered).