Despite the fact that the institution of Employee Capital Plans has been operating for many years, we still receive questions from clients of our accounting office in Krakow and accounting office in Warsaw regarding the general principles of participation in Employee Capital Plans (PPK).

Below we present a short summary of this topic.

The so-called auto-enrollment applies to Employee Capital Plans. This means that for employees aged 18-55, employed under contracts for which mandatory pension and disability contributions are paid, the employer is obliged to conclude agreements on maintaining Employee Capital Plans. People who resign from this possibility will not be registered for PPK. They must do this by submitting to the employer a special declaration of resignation from transferring payments to Employee Capital Plans. This must be an independent decision of the employee. The employer cannot encourage or force the employee to submit such a declaration.

Employee auto-enrolment is renewed every 4 years. The first one took place in 2023, so the next auto-enrolment will take place in 2027. This means that employees who resigned from participating in PPK in 2023 will have to renew it at the next date.

The employer is obliged to conclude an agreement with a financial institution managing Employee Capital Plans. The choice of the financial institution is made in agreement with the employer’s company union, and if there is no such organization, then after consultation with the employee representation selected specifically for the purpose of choosing the financial institution managing Employee Capital Plans. The lack of agreement with employees on this matter gives the employer the possibility to choose the financial institution independently.
Among others, employers with the status of a micro-entrepreneur within the meaning of the Entrepreneurs’ Law Act, to whom all employees submit a declaration of resignation from making payments to PPK, are exempt from the obligation to conclude an agreement with a financial institution dealing with the management of Employee Capital Plans. However, both of these conditions must be met together.

The employer shall conclude an agreement to run PPK on behalf of and for the benefit of the employee no earlier than after 14 days from the date of employment and no later than by the 10th day of the month following the month in which 3 months have elapsed since the employee’s employment. The agreement does not need to be concluded if the person subject to auto-enrolment has resigned from participation in PPK or has ended cooperation with the employer.

People who have reached the age of 55 may also participate in Employee Capital Plans, but this can only happen upon their application to enrol for participation in PPK.

If you have a problem in this area as part of your business, we invite you to our accounting office in Krakow and our accounting office in Warsaw, where we provide accounting services and HR and payroll services.

You can contact us by e-mail or phone:

Accounting office in Warsaw

PHONE: +48 22 292 47 21
EMAIL: biuro.warszawa@prwt.pl

Accounting office in Krakow

PHONE: +48 12 345 21 06
EMAIL: biuro.krakow@prwt.pl