Rules for making contributions to PPK
The Act of 4.10.2018 on Employee Capital Plans (Journal of Laws of 2018, item 2215, hereinafter referred to as: PPKU) defines the rules for making contributions to employee capital plans (PPK):
- payments to PPK are to be financed from own funds by the employing entity and the participant;
- an employing entity that fails to comply with the obligation to make contributions to PPK, shall be subject to a fine from PLN 1,000 to PLN 1,000,000 within the time limit provided for by the provisions;
- each participant will receive a welcome payment and an annual surcharge to the account.
Rules for making contributions to PPK
According to art. 25 PPKU, payments to PPK are to be financed from own funds by the employing entity and the participant. Payments are divided into basic and additional:
Payments shall be made from the month following the month in which the legal relationship arising from the PPK contract was established. The employing entity is obliged to calculate and make payments financed by this entity to a selected financial institution and to calculate, collect from a PPK participants and make payments to a selected financial institution, payments financed by a PPK participant. Payments financed by the employing entity and payments financed by the PPK participant are calculated and collected from the PPK participant at the time of payment of remuneration by the employing entity. Payments are made by the 15th day of the month following the month in which they were calculated and collected. If the remuneration is paid out in periods shorter than one month, payments are made by the last day of the month.
Due to the civil law nature of the claim for payments made to PPK, to the extent not regulated by the Act, the provisions of the Civil Code (Article 29 of PPKU) apply to the payments made.
Limitation of claims for payments to PPK
Claims for payments to PPK will be barred after 5 years from the date on which the payments became due. The Act on Employee Capital Plans introduces a criminal provision (Article 107PPKU), according to which an employing entity that fails to pay PPK within the time limit provided for by the provisions of the Act is subject to a fine of PLN 1,000 to PLN 1,000,000.
The Act also introduces an anti-crisis mechanism consisting in releasing the employing entity and the participant from the obligation to finance the basic payment and the additional payment, respectively, in the case of:
Additional payments to the PPK participant’s account
The Act provides for a number of incentives to support the attractiveness of PPK. In accordance with art. 31 PPKU, each participant will receive a welcome payment of PLN 250, which will be financed from the Labour Fund. Another incentive for systematic saving in PPK are annual surcharges to the participant’s account in PPK.
Taxation on PPK contributions
In the coming weeks, more articles on PPK will appear – we encourage you to keep up to date with the Law Firm’s news. If you have any questions or concerns regarding the implementation of PPK, please contact our Law Firm.
