What is PPK (Employee Capital Plan) in Poland?

The Employee Capital Plan (PPK) is a pension savings program in Poland designed to help employees save for retirement with contributions from both employees and employers.


Contributions

  • Employee: 2% of gross salary, deducted from the paycheck and taxed as income.

  • Employer: 1.5% of the employee’s gross salary, paid directly into the PPK account.

  • Government: One-time contribution of 250 PLN upon enrollment, plus 240 PLN annually, if the employee remains in the program.

Key Points

  • Taxation: Contributions are taxed as income, but the funds grow tax-free in the account.

  • 90-Day Waiting Period: Employees must wait 90 days after starting a job to enroll in the PPK.

  • Automatic Enrollment: Employees between 18 and 55 are automatically enrolled but can opt out within the first 4 months. After 4 years, re-enrollment happens unless the employee opts out again.

How It Works

  • Employee and employer contributions are invested in pension funds.

  • Funds grow over time and are tax-free until withdrawn at retirement age (typically 60).

  • Early withdrawal is possible under certain conditions, but may incur penalties.


If you would like to enroll to the PPK, please reach out to support@joinhorizons.com and our team will support you. 


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