From 1 January 2021, the fourth group of entities has been obliged to implement employee capital plans

Entities which employ less than 20 employees (the so-called other employing entities) and public finance sector entities (regardless of the state of employment) since 1 January 2021, the Employee Capital Plans Act of 4 October 2018 (the “Employee Capital Plans Act”) applies also to them. This is the last stage of implementation of employee capital plans.

Employee capital plans

Employee capital plans (the “ECP”) form a new, voluntary system of saving, which is supplementary to a pension from the Social Security Agency. ECPs were created in order to systematically accumulate certain amounts to be paid out after the eligible person attains the age of 60.

What are employing entities?

The obligation to apply the Employee Capital Plans Act is imposed by the legislator on the employing entities, i.e. as defined in Article 2 paragraph 1 point 21 of the Employee Capital Plans Act:

  • employers referred to in Article 3 of the Labour Code,
  • outwork employers,
  • farming co-operatives or co-operative associations of farmers,
  • recipients of services,
  • entities with the supervisory board, provided that its members are remunerated for the performance of their functions.

If your company meets the above criteria and employs less than 20 people or is a part of the public finance sector, you should immediately take action to implement the ECPs for your employees.

In opposition to the earlier stages of implementation, the Employee Capital Plans Act provides for separate deadlines for the conclusion of an agreement on the ECPs management as well as an agreement on the ECPs maintenance for the other entities employing (employing less than 20 people) and for the entities comprising the public finance sector.

Other employing entitiesPublic finance sector entities 
Deadline for concluding an agreement on the ECPs management 23 April 202126 March 2021
Deadline for concluding an agreement on the ECPs maintenance 10 May 2021 10 April 2021

Payments towards the employee capital plans. How much are they?

Payments towards the ECPs are basic or supplementary. They are financed by both the employer and the ECP participant.

Basic payment (obligatory) Supplementary payment (voluntary) 
Employer’s share1.5% of the gross remunerationup to 2.5% of the gross remuneration
Employee’s share2% of the gross remuneration*up to 2% of the gross remuneration

*The basic payment by an employee may be up to 2% of his/her gross remuneration, but not less than 0.5%, provided that his/her remuneration earned from various sources in a certain month does not exceed 1.2 times the minimum remuneration.

Law office D.Dobkowski sp.k. offers legal assistance to employers who are required to implement PPK

We are aware that the Employee Capital Plans Act is a challenge for every employer. Therefore, our team of ECP specialists assists employers through:

  • preparation of internal regulations concerning the introduction of the ECPs,
  • assistance in selection of a financial institution managing the ECPs,
  • providing support in negotiating the ECPs management and maintenance agreements with a financial institution (including a review of compliance with agreements terms proposed by a financial institution),
  • representing the employer in negotiations with the employee’s representation,
  • fulfilling the employers’ information obligations towards the ECPs participants and a financial institution with which the employer has concluded the ECP management agreement.

If you are interested in more detailed information on the above-mentioned issues, please contact us.

Information contained in this publication is of general nature and does not relate to the situation of a particular company. Due to frequent changes in Polish legislation, we kindly request that you make sure that on the day you are reading this publication the information contained therein is still up to date. We suggest that you consult our advisers before making any decisions.