Updated: 3.04.2025
What are Employee Capital Plans (ECP)?
Employee Capital Plans (ECP) are long-term savings programs for employees, implemented and co-created by employees, employers and the state, which enable the systematic accumulation of savings for the employee.
Who is obliged to set up an ECP in Poland?
In principle, every employer with at least one employee is obliged to set up an employee capital plan (ECP). However, there are exceptions to this rule, which will be discussed below.
The employer must select a financial institution that offers ECP management and conclude a contract with this institution for ECP management, as well as conclude a contract for ECP management on behalf of its employees.
The selection of such an institution should be made in consultation with the company trade union, and if there is no such union at the employer’s company, in consultation with the representation of employees.
Which entities are exempt from the obligation to establish an Employee Capital Plan in Poland?
The Employee Capital Plan Act provides for exceptions to the obligation for employers to establish and operate an Employee Capital Plan. These include:
- entrepreneurs with the status of micro-entrepreneurs – provided that all their employees opt out of joining the Employee Capital Plan,
- an entrepreneur who is a natural person and who employs a natural person in an area not related to their business activity,
- an entrepreneur running an Employee Pension Program (PPE), which at least 25% of employees have joined, provided that the entrepreneur calculates and pays basic contributions to the PPE in the amount of at least 3.5% of the salary.
Does an employee have to join the ECP in Poland?
Participation in the ECP in Poland is voluntary for each employee. An employee can at any time resign from participation in the ECP. They can also join the ECP at any time if they have previously resigned from it.
The employer is obliged to enrol all employees who work on the basis of contracts from which compulsory pension contributions are paid into the program. This obligation does not apply to employees who submit a declaration of resignation from paying contributions to the ECP.
Employees subject to registration for the ECP in Poland are:
- employees (i.e. persons employed under an employment contract, appointment, election, nomination or cooperative employment contract)
- natural persons performing outwork
- members of agricultural production cooperatives or cooperatives of agricultural circles
- natural persons – performing work under an agency contract or contract of mandate or other service contract
- members of supervisory boards remunerated for performing these functions
- persons on parental leave or receiving maternity benefits or benefits equal to maternity benefits.
Automatic enrollment in the Employee Capital Plan in Poland
All employees who are over 18 and under 55 are automatically enrolled in the ECP by their employer, unless they waive this option and submit a declaration of resignation to their employer. This rule is referred to as the ECP “auto-enrollment”.
IMPORTANT: People who are over 55 and under 70 can join the ECP program only upon their request.
People over 70 cannot join the ECP.
Repeat “auto-enrollment”
The employer is obliged to repeat the auto-enrollment process every 4 years. Employees who still do not want to participate in the ECP must then submit a new declaration of resignation.
Since the ECP regulations came into force, the first repeat auto-enrollment took place in 2023, the next one will take place in 2027, and the next one in 2031.
The auto-re-enrollment process – Important dates
- until February 28: The employer informs those who have submitted a declaration to opt out of saving in the ECP that payments to the ECP will resume from April 1; February 28 is also the last day of the previously submitted opt-out declaration.
- in March: The employer calculates and collects payments to the Employee Capital Plan.
- from April 1 to 17: The employer transfers these payments to the financial institution.
What are the employer’s obligations in relation to the Employee Capital Plan (PPK) in Poland?
The employer in Poland is obliged to:
- select the institution that will manage the Employee Capital Plan,
- conclude a contract with a financial institution for the operation and management of the ECP,
- accept the employees’ declaration of resignation from paying contributions to the ECP,
- inform employees about the so-called auto-subscription to the ECP and the need to re-submit the declaration of resignation from the ECP within the specified period,
- calculate and make timely payments to the ECP.
ECP management agreement in Poland
The employer concludes a ECP management agreement with a selected financial institution. The agreement must be in electronic form allowing its content to be recorded on a durable medium, i.e. USB, CD or as a PDF file sent by e-mail.
The choice of institution should be made in consultation with the company’s trade union organization, and if there is none at the employer’s, in consultation with the employees’ representatives.
If the employer does not reach an agreement with the employees’ representatives one month before the deadline for concluding the ECP management agreement, they may choose the financial institution with which they will conclude the ECP management agreement themselves.
The contract for managing the ECP sets out the general terms and conditions and principles of how the ECP will operate for a given employer. It is concluded between the employer and the financial institution.
How to choose a financial institution to manage the ECP in Poland?
There are several financial institutions on the Polish market that offer to run the ECPand have been entered in the register of ECP.
The institution can be selected from the list on the official portal dedicated to ECP.
What criteria should be considered when choosing an institution?
It is worth paying attention to:
- the institution’s experience in managing investment funds,
- the amount of fees for managing the fund,
- additional benefits for employees offered as part of running the ECP,
- additional services facilitating the use of the ECP (e.g. application for employees and employers, dedicated helpline or ECP training for employees or HR departments),
- the number of stationary branches,
- the net asset value invested in a given institution,
- the number of entrepreneurs who have entrusted the management of the ECP to a given institution.
ECP management agreement in Poland
The employer is obliged to sign a ECP management agreement on behalf of its employees. The employer concludes a single agreement for all employees.
The ECP management agreement is concluded with the same financial institution with which the ECP management agreement was concluded, with the employees and the financial institution as parties to the agreement.
The employer should conclude the contract no earlier than after 14 days of employment and no later than by the 10th day of the month following the month in which the 3-month employment period has expired. This obligation does not apply if the employee submits a declaration of resignation from joining the ECP before the expiry of this period or if his employment contract is terminated.
The period of employment includes previous periods of employment of this employee with the same employer from the previous 12 months and periods of employment in other entities, if the employer is their legal successor under separate regulations.
The employer attaches a list of employees to the contract with the financial institution. In case of changes in the number of people participating in the ECP, only the list of employees changes, while the contract itself remains unchanged.
The ECP management contract specifies the detailed conditions for managing the funds accumulated in the ECP, including the conditions for disposing of these funds, the conditions for opting out of saving, and information on costs and fees for ECP participants.
How much do I have to pay into the ECP in Poland?
The ECP savings program is financed by the employer, the employee and the state.
The employer is obliged to make basic payments to the ECP in the amount of 1.5% of the salary, and the employee in the amount of 2% of the salary.
The state contributes PLN 240 per year to employees and also pays a welcome bonus of PLN 250 in the first year of joining the ECP.
The employer and employee can also declare additional payments. The employer can contribute up to 2.5% of the employee’s salary and the employee can contribute up to 2% of their salary.
Contributions to the Employee Capital Program are calculated and deducted by the employer from the employee’s salary remaining after taxes and Social Insurance Institution contributions. They must be transferred to a financial institution by the 15th day of the month following the month in which the contributions were calculated and collected.
What penalties threaten employers for failing to fulfill their obligations related to the Employee Capital Program?
The ECP Act also contains penal provisions that establish penalties for employers for failure to fulfill the obligations imposed on them by the Act.
An employer who fails to fulfill the obligation to conclude a ECP management agreement within the time limit provided for by law is subject to a fine of up to 1.5% of the entire wage fund.
A fine of between PLN 1,000 and PLN 1,000,000 may be imposed on employers who:
- failed to fulfill the obligation to conclude an ECP management agreement within the time limit prescribed by law,
- have not fulfilled the obligation to make payments to the ECP within the time limit provided for by law,
- have not notified the data required by the ECP Act or have notified false data or have provided false explanations in these matters or have refused to provide them,
- do not keep records related to the calculation and payment of contributions to the ECP.
Understanding how the ECP works in Poland and choosing the right institution is often a challenge for employers, especially for foreign employers who are just starting out on the Polish labor market. The lawyers from our law firm’s labor law team support foreign employers in the process of concluding contracts with ECP providers and in fulfilling their ECP-related obligations.
Upon request, we can also draft comparisons of offers and lists of ECP providers. If you have any questions, please contact us at the e-mail address provided: [email protected]
FAQ – Employee Capital Plans (PPK) in Poland
What are the employer’s obligations regarding contribution payments to the ECP in Poland?
The employer is responsible for ensuring that contribution payments to the ECP are made on time. This includes paying the employer’s contribution, which amounts to 1.5% of the funds collected from the employee’s salary, and ensuring that the payments are transferred to the financial institution selected by the employer. The employer must also facilitate additional contributions, where applicable, and comply with the auto enrollment dates set by law.
How are the savings accumulated in an individual ECP account managed in Poland?
The savings accumulated in an individual ECP account are managed by a financial institution selected by the employer in consultation with employees or trade unions. These funds collected form part of the private savings of the employee and are intended as a supplement to the pension system. The institution manages the investments, ensuring compliance with legal regulations and financial security.
What are the tax obligations related to ECP contributions in Poland?
Both employer and employee contributions to ECP are deducted from the employed persons’ salaries after tax deductions. Employees pay tax on their own contribution, while employers’ payments are classified as part of the total wage fund. Contributions must be transferred to the financial institution selected by the auto enrollment dates. The employer must also maintain records related to the funds collected and report any necessary data to the appropriate authorities.
