Starting this November, the Social Security Administration in Poland (ZUS) will commence with the process of verification of the PPK registrations at the companies.

Companies that have not complied with the obligation to sign a management contract with provider of PPK –  will start to successively receive requests from ZUS to clarify and conclude management contracts from November 18 to the end of December 2021 .

The consequence of failing to comply with the law can be huge financial penalties. Experts indicate that sanctions may be imposed on enterprises in the amount of up to 1.5 percent, of the annual payroll or even up to PLN 1 million.

Employers who have not signed a management contract in connection with PPK will receive requests for explanations in the near future, for this purpose  Electronic Services Platform will be used . If the response and clarifications are insufficient, there will be subsequent control and severe financial penalties.

Starting 1^st of January 2021 companies are obligated to implement the PPK (Employee Capital Plans)

Below you will find short summary of the process:

•  choosing the financial institution for PPK

For the PPK was created list of institution that may offer the PPK programs

For more data please visit official website Instytucje finansowe oferujące PPK — oficjalny portal Pracowniczych Planów Kapitałowych PPK (mojeppk.pl)

•  signing a contract for management the PPK

This is mandatory for the employer. The contract for running does not have to be signed if all employees resign from paying PPK contributions.

•  collecting all the PPK data for the registration process

Each PPK institution will deliver templates what kind of HR data is required for the PPK process.

Employer review list of employed person to select the enrollment data.

All employees who are 18 and under 55 are automatically admitted to the PPK. Employees from 55 to 70 years old independently ask the employer to conclude such an agreement on their behalf.

Employees may resign from the PPK plan.

•  signing an agreement for running PPK

In case at the company employees will resign the PPK program, therefore the agreement for running is postpone.

This agreement will be signed when at least 1 employee decided join the PPK program.

•  calculating PPK contribution at payroll reports

This process is when the PPK is active at the organization. The amounts of PPK contribution will be listed at payroll reports.

Amount of payments financed by the employer:

1. basic payment (obligatory): 1.5% of gross remuneration;
2. additional payment (voluntary): up to 2.5% of gross remuneration

Amount of payments financed by the employer:

1. basic payment (obligatory): 1.5% of gross remuneration;
2. additional payment (voluntary): up to 2.5% of gross remuneration

• reporting to the PPK institution

An employer reporting to the PPK by the 10th day following the month of exceeding 90 days of employment.

Each month there is obligation to send reports with PPK contributions, new enrollments and resignations of PPK.

• transferring the PPK amount into the PPK institution;

The process will end after the PPK contributions will be successfully transfer into the bank account of PPK institution.

Authors: Karolina Kot-Ciosek, Andrew Davis