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Funds grow over time and are tax-free until withdrawn at retirement age (typically 60).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