[Poland] Additional contribution to the PPK

Mandatory basic contributions and voluntary additional contributions are the source for PPK financing. So far very few companies have used the latter form. So, is it worth to decide for such a solution?

According to the applicable regulations on Employee Capital Plans, both an employer and an employee can make the additional contribution:

• employer may finance the additional contribution of up to 2.5% of the employee’s gross remuneration
• employee may declare the maximum additional contribution of 2%

Additional contribution – benefits for employers

As the statistics show, the majority of companies do not decide to co-finance additional contributions to the PPK. By the end of the first quarter of 2020, only 17 782 employers decided to co-finance it to employees. The additional contribution however may bring measurable benefits to employers.

The financing of an additional contribution can constitute a part of employer branding and distinguish the company on the labour market. It can also be used as an element of the incentive system as well as can help a company to attract and retain employees.

Additional contribution to the PPK – terms of granting

The additional contribution financed by the employer cannot exceed 2.5% of the employee’s gross remuneration. However, the contributions financed by employers are not included in the remuneration constituting the basis for determining the amount of obligatory contributions for pension insurance.

The additional contribution made by the employer cannot be granted on a discretionary basis, and both its amount and the terms of granting it shall be determined by the employing entity under the PPK management agreement concluded with the selected Financial Institution.

Employer may change the amount of additional contribution granted to employees during the PPK program, but it should be remembered that this requires appropriate changes to the concluded PPK management agreement and remuneration regulations.

Therefore, before entering the rules for granting additional contributions to employees, it is worth to carefully consider what kind of rules should be defined so that there will be no need to change them in the future and so that they will motivate the crew.

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