3.07.2020 PPK

[Poland] The next PPK phase has just started


As from July 1, 2020, the obligation to implement Employee Capital Plans (PPK) has been extended to companies with at least 20 employees. Due to the coronavirus pandemic, the same deadlines for the PPK implementation apply to companies from the second phase of the programme (50 – 249 employees). What actions do employers have to take in order to prepare for the PPK implementation and how much time do they have for that?

The implementation of Employee Capital Plans consists of several stages. Companies covered by the II and III phases of the programme must first choose a financial institution. The PPK management agreement must be signed on 27 October 2020 at the latest and the PPK operating agreement on 10 November 2020 at the latest.

The PPK implementation is also connected with the implementation of PPK administration processes and preparation for the ongoing operation of the programme.

Stages of PPK implementation for companies with 20 – 249 employees:

  • JULY-SEPTEMBER 2020: Selection of a financial institution together with an information campaign
  • SEPTEMBER – OCTOBER 2020: Implementation of PPK administration processes
  • NOVEMBER 2020: Ongoing PPK administration

Selection of a financial institution and the information campaign

The first stage of the preparation for the PPK implementation should start with the selection of the representation of employees to choose the Financial Institution. Once the decision on the selection of the Institution has been made and the PPK management agreement has been concluded, an information campaign for employees should start. It is worth remembering to prepare the necessary documentation of this process, which will certainly be useful in case of PIP inspection. This stage ends with signing the agreement for PPK running.

Implementation of PPK administration processes

During this stage of preparation, the company should adapt its internal procedures to PPK:

  • incorporate information obligations for PPK into onboarding and HR services
  • establish and implement a document flow process for PPK
  • determine how to create lists of participants, register new participants and process data on employee declarations in order to transfer relevant data to payrolls
  • determine the scope and manner of data exchange with the Financial Institution and the potential use of the Financial Institution’s systems

The ongoing PPK administration

The final stage is to start operating the program, which means:

  • ongoing registration of new participants and processing data on employees` declarations
  • execution of the transfer payment process
  • reporting obligations
  • verification of the 1.2 times the minimum remuneration (with the submitted declaration of reduction of the employee’s basic payment)
  • calculation of PPK contributions on payrolls
  • adjustment of PPK contributions, inter alia, if a declaration of resignation from PPK is submitted
  • exchange of data with the Financial Institution concerning the PPK (13 files within the Standard recommended by the PPK Project Group)
  • re-subscription every 4 years – from 2023 onwards.

Learn more: Webinar: Effective PPK implementation. Practical information and examples

How can we help?

We offer comprehensive support at the stage of PPK implementation and ongoing PPK services.

PPK support services


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