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2 December 2020

Employee Capital Plans (PPK) for small businesses – deadlines

Is your company ready for stage IV of Employee Capital Plans?

Employee Capital Plans are a voluntary long-term savings program created and co-financed by employees, employers, and the Polish state.

The system consists of monthly payments in the amount of 2% gross, collected from the employee’s income, with the possibility of increasing this amount even up to 4%. The basic employer’s contribution is 1.5% of the employee’s income, but the employer may also pay the employee additional contributions of up to 2.5%. Moreover, the state is obliged to contribute a “welcoming payment” of 250 PLN, and also a PPK participant may receive annual payments of 240 PLN after meeting the conditions contained in the Law.

The process of implementing Employee Capital Plans has been divided into four stages, covering groups of employers depending on the number of employees, according to the following diagram:

  • stage I – companies employing at least 250 people,
  • stage II – companies employing at least 50 people,
  • stage III – companies employing at least 20 people,
  • stage IV – other employing entities (less than 20 employees) and public finance sector entities.

Note that the last, IV stage of PPK implementation will begin on January 1st, 2021.


Stage IV – what should you remember?

The last stage of PPK implementation covers the smallest entities and the public finance sector, i.e. all companies employing no more than 20 employees.

The units covered by Stage IV will be required to sign two types of contracts: for the management and maintenance of PPK.

Dates of concluding contracts for units of the public finance sector:

  • PPK management contract – deadline: March 26th, 2021
  • PPK administration contract – deadline: April 10th, 2021

Deadlines for other entities with less than 20 employees:

  • PPK management contract – deadline: April 23rd, 2021
  • PPK administration contract – deadline: May 10th, 2021

The presented dates are final deadlines, thus we advise you to plan the signing of a management contract well in advance, especially as it does not cause additional costs for employees or employers.

Only the management contract is the basis for paying contributions to the PPK.

Employee Capital Plans – eligibility rules

Employees between 18 and 55 years of age will be automatically enrolled in the Employee Capital Plans. If an employee from the eligible age group does not want to join the PPK, he or she must submit a resignation form to the employer. Those over 55 years of age may join the PPK at their request. Persons over 70 years of age are not eligible to join the PPK.

Financial institutions

Please refer to the list of available institutions at mojeppk.pl for more information.


Learn about the ARPI Accounting offer

We provide full support in the process of PPK implementation in your company:

  • assistance in choosing an employee representative and the institution providing the PPK,
  • coordinating the conclusion of an agreement with the institution (PPK provider),
  • assistance in preparing information for employees,
  • preparation of documents (instructions of employees related to joining the PPK),
  • HR activities related to the calculation of PPK contributions
  • acting as an entity authorized to administer the system of a financial institution.

Feel free to contact us at contact@arpiaccounting.com

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ARPI Accounting is a part of ARPI Group, a Norwegian holding which started to operate in Poland in 2001.

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