February 19, 2019

February 19, 2019

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February 18, 2019

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Since 2019, PPK (Employee Capital Plans) are obligatory for employers engaging at least 250 people

The legislation imposing an obligation to implement additional pension plans for employees (called Employee Capital Plans; Polish acronym: PPK) entered on January 1, 2019. 
It requires that the employers select a financial institution which will manage the PPK. The employer decides about selection of the financial institution together with employees’ 
representatives. First employers (employing at least 250 people) will be subject to this obligation since July 1, 2019. 

Highlighted below are the most important dates for such employers.

Date of 
determination 
of the 
headcount 

Date of 
application 
of the act 

Date of 
conclusion of 
the agreement 
on 
management 
of PPK with a 
selected 
financial 
institution 

 Date of 
conclusion of 
the agreement 
on 
management 
of PPK with a 
selected 
financial 
institution

 31 December 
2018

 1 July 
2019

 26 September 
2019

 10 October 2019 (in case of people 
employed later - not later than on 
10th day of the month following the 
month in which 3 months of 
employment have elapsed)

First contributions by 15 November 2019 
The obligation to make first contributions arises in the month following the calendar month in which the agreement on maintenance of PPK is concluded. According to the legislation, as a rule, contributions to PPK should be made until 15th day of month following the month in which they were calculated and charged. It means that first contributions should be made by entrepreneurs employing at least 250 people not later than on 15 November 2019.

The final decision is up to the participant 
All individuals subject to obligatory social insurance aged between 18 and 70 will be eligible to participate in PPK (as a principle, the individuals aged between 55 and 70 will have to submit a declaration of participation to PPK in order to be covered by the plan). Each person will be entitled to declare to employer in written form that they do not want to participate in PPK (until an agreement on maintenance of PPK is concluded) or resignation from PPK (at any subsequent time). Every four years, until the end of February, employers will be obliged to inform employees who submitted such declaration about the resumption of contributions for them.

Obligations for other employers starting from 1 January 2020 
Since 2020 other employers will be successively covered by the obligation to create PPK. The date in which the act should be applied depends on the headcount, including not only employees, but also e.g. home based workers, people engaged on the basis of agency agreements, contracts of mandate, contracts for providing services, and members of supervisory boards remunerated for performing those functions.

Headcount 

 Date of determination of the headcount

Date of application of the act 

 Date of conclusion of the agreement on management of PPK

 Date of conclusion of the agreement on maintenance of PPK

 At least 50 people

 30 June 2019

 1 January 2020

 27 March 2020

 10 April 2020

 At least 20 people

Other

31 December 2019
 

 1 July 2020

1 January 2021

 28 September 2020

26 March 2021

12 October 2020

12 April 2021

 Public finance sector

 -

 1 January 2021

 26 March 2021

 10 April 2021

Copyright 2019 K & L Gates

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About this Author

Dr. Izabela Szczygielska, KLGates, Employment lawyer
Counsel

Izabela Szczygielska is a counsel in the firm's Warsaw office. She focuses her practice on a full spectrum of issues connected with employment law, including legal individual and collective labour law, labour disputes involving individuals and collective redundancies, and negotiations with trade unions. She advises clients in developing internal policies and strategies, including review of internal documentation and adjusting it to Polish law, preparation of internal regulations and policies, including whistleblowing polices and anti-harassment procedures. Ms....

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