Poland’s recently introduced Employee Capital Plans (PPK). This was introduced to deliver long-term financial security for Poles but are not proving as popular as hoped.
Despite considerable encouragement and support from the Polish state, latest figures show fewer than 40% of qualifying employees have so far elected to participate in PPK, which is effectively a voluntary pension top-up scheme.
Every employee who meets the statutory criteria for PPK, introduced in 2018, will be automatically enrolled into this comprehensive, long-
term saving system, based on them paying in 2% of their annual salary.
Furthermore, employers, who are joining the PPK scheme in phases up to January 2021, are required to make a contribution equal to 1.5% of their employees’ salaries into PPK, while the state pays an entry bonus to employees for joining the scheme and also contributes a small amount towards it each year.
However, PPK is only voluntary for employees, and they may withdraw from the scheme at any time.
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