16.04.2019 PPK

[Poland] How to introduce PPK in your company?


From 1 July 2019, a large proportion of businesses operating in Poland will have to introduce PPK (Employee Capital Plans). The scope of the new legislation imposes many new duties on employers. The pension reform imposes on employers a number of obligations and failure to comply with them leads to serious consequences, including financial penalties. If, however, the PPK scheme is implemented properly, it may be a source of satisfaction for your employees and, consequently, build your image as a friendly and reliable employer

Below we present the most important information that will prepare your company for the implementation of the PPK.

When should PPK be implemented in your company?

The PPK law will be introduced gradually, but eventually it will affect all businesses which employ at least one employee, subject to exclusions set out in the law. The deadline to implement the PPK depends on the number of employees and falls between 1 July 2019 and 1 January 2021.
It’s worth noting that the law defines an “employed person” more broadly than the Labour Code. Largest companies, that is those which on 31 December 2018 had at least 250 employed persons, must implement the PPK from 1 July 2019, and smaller companies by subsequent

More information: Employee Capital Plans – the most important information

First steps when implementing PPK in your company

  • Representation of the employed persons

Pursuant to the law, the decision regarding election of financial institution that will operate the PPK should be taken in agreement with the establishment’s trade union, and in the absence of such – with the representatives of the employed persons appointed to this end. The rules according to which such representation should be appointed or determining whether the existing one has been properly appointed may give rise to doubts. In this case, an audit of your internal rules and regulations would make you sure that representatives to consult the election of the PPK operating institution has been appointed properly.

  • The rules and amounts of potential voluntary contribution to be paid by employer

The law provides for the possibility to pay additional, voluntary PPK contribution. It is up to an employer to decide if it wants to pay voluntary contribution, and if so, whether its amount will depend on the employee’s seniority or on other factors that will have to be included in the salary regulations. An audit of your payroll would be helpful in this issue.

  • Training and implementation of PPK processes

PPK legislation put you under an obligation to undertake many actions and provide many information to your employees or financial institution operating the PPK. After carrying out a detailed analysis we found as much as 34 elements of implementation process and PPK management, which require from employers knowledge, time, planning and control. During this process it is worth using the support of external companies that provide you with comprehensive assistance on planning and coordination of all necessary actions required under the PPK legislation.

 Do you need help in introducing PPK in your company? Contact us.

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