PPK - Pracownicze Plany Kapitałowe
The PPK is a long-term saving scheme for employees created and co-financed by employers and the State Treasury.The main objective of the PPK is to systematically save funds that will provide to theirparticipants an additional financial buffer after the age of 60.Participation in and contributing funds to the PPK is voluntary for employees –
all employees who have attained the age of 18 years but have not attained the age of 55 years
will be automatically enrolled in the PPK by their employers, but they will be able to opt out of
paying contributions to the PPK at any time.
Employees who have attained the age of 55 years but have not attained the age of 70 year
may enrol in the PPK if they file a request with their employer.
After the age of 70, the enrolment in the PPK will not be possible.The funds in the PPK are private property – employee can freely dispose of them beforе
and after the age of 60. Employee will also be able to identify those who will receive the funds
accumulated in the PPK in the event of his death. Contributions to the PPK will be invested
in the defined date sub-funds where the level of investment risk will be reduced as you
employee get closer to the age of 60, i.e. the time of withdrawal of the funds from the PPK.
Employee will be able to withdraw the savings in the PPK in full, but it is most advantageous
to withdraw 25% on a one-off basis and 75% in at least 120 instalments and over a minimum of 10 years.
In such case, employee will pay no tax on capital gains.Employee will have the opportunity to make early use of his savings if he, his spouse
or his child get(s) seriously ill – up to 25% of the funds without the obligation to return them;
if employee want to pay his own contribution when taking out a loan for an apartment or
construction of a house – up to 100% of the funds with the obligation to return them within 15 years
(for people who have not attained the age of 45 years).