What employers are in for

Adaptation of accounting and IT systems, the necessity of selecting – in consultation with the employees – of a financial institution and, inevitably, extra costs. These are some of the challenges faced by companies in connection with implementation of employee capital plans, or PPKs.

Employee capital plans must be implemented in the first order of sequence (beginning in July 2019) by large companies employing at least 250 workers. As of 1 January 2020, this duty will also extend to medium-sized enterprises, and – later on – also to small enterprises. Which is not to say that owners of small enterprises can take it easy until then. “PPK implementation at smaller entities may be more of a challenge than at large ones”, opines Leszek Koziorowski, partner in GESSEL. “Let us keep in mind that large companies can generally fall back on large legal and HR teams, and that they tend to have larger budgets. For example, enterprises ought to prioritise timely execution of contracts with financial institutions – once the statutory deadline has elapsed, lack of a contract for PPK management may incur a penalty of up to 1.5% of the given employer’s remunerations budget for the previous financial year; failure to execute a contract for PPK operation, meanwhile, may incur a penalty of up to PLN 1 mln (…)”

Full text (in Polish) is available in My Company Polska