Employee’s Capital Pension Scheme – the bill was published in the Journal of Laws


On 28 November 2018 the bill on establishing of the Employees’ Capital Pension Schemes (hereinafter called Pracownicze Plany Kapitałowe – PPK) was published in the Journal of Laws.

The bill will come into force on 1 January 2019.


Key assumptions of Employees’ Capital Pension Scheme


Employees’ Capital Pension Scheme would be a new, mandatory for employers and voluntary for employees system for collecting long-term pension savings system. The new scheme is intended to improve the structure of Polish pension savings and shall be complementary to the voluntary Employee Pension Schemes (PPE).


The participants of the new system will be all employees under 55, who will automatically be registered under the PPK scheme with the right to opt out of the program. Employees between 55 and 69 will be able to join the program voluntarily.


PPK will be mandatory for all employers, who hire employees and persons engaged in home work within the meaning of the Labour Code, members of agricultural production cooperatives and members of farmers’ circle, persons performing work on the basis of a contract of agency, contract of mandate or other contracts on performance of services within the meaning of the Civil Code as well as members of supervisory boards remunerated for these functions.

The obligation will not apply to employers if the persons engaged by them are not subject to mandatory pension and disability insurance in Poland. In particular, such  situation may concern foreign employers who second the employees to work in Poland, if  during the secondment the employees are still compulsorily covered by the national social security system and exempt from Polish social security contributions on the basis of a relevant certificate (e.g. A1).

If it is not possible to obtain a required certificate for an employee, the obligation to create a PPK, generally, will apply to the foreign employing entity.

Under the bill, the obligation to implement PPK will initially cover all employers employing over 250 people. What is important, the PPK provisions will not be applicable to the employers who have already established the employees' Retirement Pension Scheme (PPE - which is a voluntary program), provided that the mandatory employer’s contribution to PPE will not be lower than 3,5% and at least 25% of the employees joined PPE.

The exemption from the obligation to create PPK will also apply to individuals who engage other people outside the scope of business activity unless the engagement is not related to their business activity.

The exemption may also be used by micro-entrepreneurs if all employed persons submit a declaration of resignation from participation in PPK.

The financial institution cannot charge any fees from welcome payments made to PPK, withdrawals, refunds, transfers and annual payments.


Employees’ Capital Pension Scheme will be based on the co-operation of employers and employees in creating of employees’ long-term pension savings in the investment funds (both employers and employees will make contributions). The employee's contribution will be 2% of the employee’s remuneration (with the possibility of an additional voluntary contribution of 2%). The employer's contribution will be 1.5% of the employee’s remuneration (with the possibility of the additional voluntary contribution of 2.5%).

The additional voluntary contribution paid by the employer can be differentiated depending on the period of employment or on the basis of the employer’s rules of remuneration or the collective labor agreement.

Employees contribution can be lower than 2% (but not less than 0.5%) for those employees whose income is lower than the equivalent of 1.2 of Polish minimum wage in a given month.

Employers will be able to choose a financial institution (among all institutions authorised on PPK portal), which will be managing employees’ pension savings. Since the first contributions. the savings , will be private, assigned to a specific person and subject to inheritance.

Fiscal incentives

Participation in PPK will be associated with some fiscal incentives. The employer’s contributions will be exempted from pension & disability contributions and may be treated as the employer’s tax deductible costs. Also other expenses connected with the functioning of PPK, which are incurred by the employer, can be deducted from employer’s income. The employee’s contributions will be financed from employee’s net remuneration. There will also be a co-financing from the State of PLN 250 (i.e. a so-

called welcome contribution) and the additional payment of 240 PLN (i.e. the annual premium). Both extra payments will be free of tax. Disbursement of funds accumulated in PPK will also be exempted from taxation in well-defined cases.

Implementation schedule

  • From 1 July 2019 – the obligation to create PPK will lay on all entrepreneurs employing at least 250 people
  • From 1 January 2020 - the obligation to create PPK will lay on all entrepreneurs employing between 50 to 249 people
  • From 1 July 2020– the obligation to create PPK will lay on all entrepreneurs employing at least 20 people
  • From 1 January 2021 - the obligation to create PPK will lay on remaining employers and public-sector.

Contact us

Joanna Narkiewicz-Tarłowska


Tel: +48 22 746 4764

Katarzyna Urbańska

Vicedirector Financial Services Regulatory in Tax & Legal Department

Tel: +48 519 507 169

Mateusz Ordyk

Counsel, Attorney-at-law

Tel: +48 519 506 284

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