Contributions to PPK can only be made for a participant of this program

The employing entity (e.g. employer, client) "enrolls" the employed person in the PPK, i.e. concludes - in their name and on their behalf - a PPK management agreement with the financial institution with which it has a PPK management agreement, no earlier than after 14 days of employment and no later than by the 10th day of the month following the month in which 3 months (90 days) of employment of that person have elapsed. The employing entity does not do this if the person - before the expiry of this period - declared not to make payments to the PPK or ceased to be an employee in relation to that entity. The period of employment required to conclude a PPK management agreement includes periods of employment from the previous 12 months, which took place in the current employing entity, as well as periods of employment in other employing entities, if - under separate regulations - the current employing entity is the legal successor in legal relations established by the entity that previously employed that person.

In a situation where the employing entity has not fulfilled the obligation to conclude a PPK management agreement no later than by the 10th day of the month following the month in which 3 months (90 days) of employment of a given person have elapsed, it is assumed that on the first day after the expiry of this period - by operation of law - a legal relationship resulting from the PPK management agreement was established between the employed person and the financial institution with which the employing entity has concluded a PPK management agreement. The PPK management agreement is then considered to have been concluded on the terms resulting from the PPK management agreement. This is the only situation where an employed person becomes a PPK participant by operation of law.

Example. An employer hired an employee (aged 25) on June 2, and therefore has until September 10 to “enroll” him in PPK. If he fails to do so, the employee will become a PPK participant by operation of law on September 11.

Payments only for PPK participants

Participation of an employed person in PPK enables the employer to make payments to PPK for them. The first payments to PPK are calculated and collected from the remuneration paid to the PPK participant after the legal relationship resulting from the PPK management agreement has arisen – this relationship may arise as a result of “enrolling” a given person in PPK or by operation of law. The first payments are made (i.e. transferred to the financial institution) by the 15th day of the month following the month in which they were calculated and collected.

Example. On 2 December, the principal employed a contractor (aged 34) who was subject to mandatory retirement and disability insurance under this assignment, i.e. had the status of an "employed person" within the meaning of the PPK Act.

Due to his mistake, the principal did not "enroll" the contractor in PPK. As of April 11, the contractor became a participant in PPK by operation of law.

Despite the contractor's "failure to register" in the PPK, on ​​the dates of payment of remuneration to this person - at the end of December, January, February, March, April and May - the principal calculated and collected PPK contributions from these remunerations, but did not transfer these contributions to the financial institution. PPK contributions calculated and collected from remunerations paid to the contractor at the end of April and May (i.e. after 11 April, when the contractor became a PPK participant by operation of law) should be transferred to the financial institution. However, PPK contributions calculated and collected from remunerations paid to him earlier cannot be made, because on the date of payment of these remunerations the contractor was not yet a PPK participant.

Consequences of employees' decisions

It should be remembered that the employer "enrolls" in PPK automatically - without the need for the employee to take any action - only employees who have not yet reached the age of 55. Employees who are already at least 55 but not yet 70 are "enrolled" in PPK only at their own request. It is not possible to "enroll" in PPK an employee who is already at least 70 years old.

In addition, an employed person who has not yet reached the age of 55 also has a choice regarding their participation in PPK. If they do not want the employer to "enroll" them in PPK, they can declare to them that they will not make payments to PPK, and later, for example, change their mind and submit an application to make payments to PPK. Such decisions of employed persons affect their participation in PPK, and thus payments to this program.

Example. On December 2, the employer hired employee A (aged 56) and employee B (aged 32). At that time, these individuals were not interested in participating in the PPK - employee A did not submit an application for a PPK management agreement, and employee B immediately submitted a declaration of resignation from making PPK contributions on the first day of employment. Later, these individuals changed their minds - on May 5, employee A submitted an application to the employer for a PPK management agreement, and employee B submitted an application to make PPK contributions. The employer should have immediately "enrolled" these employees in the PPK (they already had the required period of employment), but did so. Employees A and B did not become PPK participants by operation of law. The employer should conclude PPK management agreements on their behalf and for their benefit as soon as possible. The first PPK payments should be calculated and deducted from the salaries of employees A and B paid after they were "enrolled" in the PPK. The damage caused to employees A and B by “not enrolling” them in the PPK immediately after they submitted their applications in this matter should be redressed by the employer in accordance with the provisions of the Civil Code.

More about PPK at mojeppk.pl and by phone at 800 775 775. We also encourage you to take advantage of free training courses conducted by PFR Portal PPK experts. You can sign up for training here: https://www.mojeppk.pl/szkolenia.html.