Employee Capital Plan (PPK)

What is the Employee Capital Plan (PPK)?

  • 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 their participants 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 are automatically enrolled in the PPK by their employers, but they are 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 years may enrol in the PPK if they file a request with their employer. After the age of 70, the enrolment in the PPK is not possible.
  • The funds in the PPK are private property – employee can freely dispose of them before and after the age of 60. Employee is also able to identify those who will receive the funds accumulated in the PPK in the event of his death.
  • Contributions to the PPK are invested in the defined date sub-funds where the level of investment risk will be reduced as employee get closer to the age of 60, i.e. the time of withdrawal of the funds from the PPK. Employee is 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 pays no tax on capital gains.
  • Employee has 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).

When PPK becomes binding for employers?

The date of implementation of the PPK and the commencement of contributions to the PPK depend on the size of the company.

Number of employees

Companies employing at least 250 people (as at 31 December, 2018)

Companies employing at least 50 people (as at 30 June, 2019)

Companies employing at least 20 people (as at 31 December, 2019)

Other employers, including public finance sector entities regardless of their size

Effective date of implementation of the provisions of PPK Act

as of 1 July, 2019

as of 1 January, 2020

as of 1 July, 2020

as of 1 January, 2021

Deadline for entry into PPK management agreement

25 October, 2019

27 October, 2020

27 October, 2020

23 April, 2021 (26 March, 2021 for public finance sector)

Deadline for entry into PPK administration agreement

12 November, 2019

10 November, 2020

10 November, 2020

10 May, 2021 (10 April 2021 for public finance sector)

Important note! Business groups can launch PPK in all Group companies with the deadline provided in the Act for the employer from the Group with the highest number of employees.

The deadlines indicated in the table above are based on the information published at


How does it work? - obligations of employer and employee


  • Select a financial institution to manage PPK in agreement with the trade union or representation of employees
  • Conclude PPK management agreement and PPK maintenance agreement with the institution of choice
  • Inform all employees about the selected institution managing PPK
  • Make contributions to employees’ PPK accounts
  • Possibility to make additional contributions to employees’ accounts in PPK (up to2.5% of the employee’s gross salary)


  • Employee’s individual PPK account is automatically established after concluding PPK agreement by the employer with the financial institution of choice on behalf of the employee.
  • The employee may resign from making payments to PPK
  • Possibility to make additional payments to one’s own account in PPK (up to 2% of the employee’s gross salary)
  • Possibility to withdraw 25% of the amount paid as a one-off once the employee turns 60, with the remaining part paid in monthly instalments (at least 120 instalments)

What is the contribution to PPK?

Contributions to PPK (by both employer and employee) are calculated on the basis of the salary* of the employee. The amount of the basic and additional contribution constitutes the following:




Basic (mandatory) contribution



Additional (voluntary) contribution

Up to 2,5%

Up to 2%

Additionally contributions from the State Treasury

PLN 250 – welcome contribution (if the employee saves under the PPK for at least 3 months).
PLN 240 – annual additional contribution (after fulfilment of the conditions laid down in the PPK Act).

* base for employee pension and disability insurance contribution stipulated in the Act of 13 October 1998 on the social insurance system, without applying the restriction referred to in art. 19 paragraph 1 of this Act and excluding pension contributions assessment basis for pension and disability insurance of those on parental leave or receiving maternity allowance or benefits equal to maternity allowance

**basic contribution financed by the employee may amount to less than 2% of the remuneration, but not less than 0.5% of the remuneration, if the employee’s remuneration from different sources in a given month does not exceed the amount equal to 1.2x of the minimum remuneration.

What are the benefits of running PPKs?


  • PPK as an additional component of an attractive benefit package offered by the employer (e.g. making additional contributions for employees after a certain time of service on top of the basic (obligatory) contribution of 1.5%).
  • Employer’s costs associated with the financing of contributions to PPK can be treated as income deductible expenses.
  • Contributions financed by the employer are excluded from the base salary, which is used to calculate social security and disability insurance premiums.


  • Additional savings after the age of 60 (an Employee joining the PPK at the age of 20 with a gross monthly salary of PLN 4,000 may save ca PLN 240,000*).
  • Capital investment in accordance with a strategy aligned with the employee’s age which will be adjusted with time.
  • The savings in PPK are treated as entirely private assets, unlike the pension premiums paid to ZUS and OFE.
  • No tax** imposed on money withdrawn by the employee from PPK past the age of 60.
  • Acquisition of PPK assets through succession is not subject to donation or inheritance tax.

** After 40 years of saving assuming an adequate rate of return (the fund, however, does not guarantee achievement of the investment goal) - calculations made using the PPK Calculator available at https://www.mojeppk.pl/kalkulator.html. Calculation assumptions: age of an employee enrolled in the PPK – 20 years, PLN 4,000 gross remuneration, basic (mandatory) contribution of the employee to the PPK: 2% of gross remuneration, basic (mandatory) contribution of the employer to the PPK: 1.5% of gross remuneration, projected annual rate of return in the withdrawal period: 2.75%, projected annual increase in remuneration: 2.8%, projected annual average rate of return in the investment period: 3.5%, no additional contributions, saving up to the age of 60, management costs – 0,40%.

** A flat-rate 19% capital gains tax (pursuant to Art. 30a sec. 1 item 11b of the PIT Act) will not be charged on withdrawals made after the participant turns 60 in accordance with the following terms: 25% of total amount of money will be withdrawn at one time and the remaining 75% (or 100% if a decision is made to withdraw the whole amount of money in instalments) over a period of 10 years, in at least 120 monthly instalments. If the withdrawal terms are changed (fewer instalments or withdrawal of all money at one time under the circumstances provided for in the PPK Act), personal income tax will be charged on the disbursed funds and the value of the taxable income will be determined in accordance with Art. 30a sec. 13 of the PIT Act as an amount of proceeds from the repurchase of participation units or redemption of settlement units, less the cost incurred in connection with the purchase of these participation units, or cost of acquisition of these redeemed settlement units.

How and by whom the funds in the PPK are invested?

Throughout the period of participation in the PPK, employee saves in one sub-fund matching the risk level to his age, i.e. in the so-called defined date fund.
Each PPK participant is automatically assigned to the specific defined date sub-fund corresponding to their age. In line with the provisions of the PPK Act, the investment policy of such sub-funds reduces the investment risk as you get closer to the age of 60. Knowing exactly the investment perspective (date of attainment of the age of 60 years), it is possible to initially invest more of the funds (assets) into shares and then (as you get closer to the age of 60) to gradually invest more and more funds in debt instruments characterised by lower investment risk.

Allocation of the defined date sub-funds:

Share part (including shares)

Debt part (including bonds)

from the creation of the sub-fund to 20 years before the defined date

60 – 80%

20 – 40%

20 years before the defined date

40 – 70%

30 – 60%

10 years before the defined date

25 – 50%

50 – 75%

5 years before the defined date

10 – 30%

70 – 90%

starting from the defined date

max. 15%

min. 85%

Sub-funds of Santander PPK SFIO

Eight sub-funds of Santander PPK SFIO investment fund have been made available to PPK participants:

PPK in Santander TFI

  • 8 defined date sub-funds for PPK participants under Santander PPK SFIO.
  • 0% permanent management fee until 31 December 2020, and no more than 0.4% from 1 January 2021 - details in the table below.
  • 0% success fee until 31 December 2021, and no more than 0.1% from 1 January 2022
  • 0% conversion fee (for changing the investment allocation) from 11 October 2019 until further notice.
  • Processes requiring submission of paper documentation can be handled at selected branches of Santander Bank Polska S.A. located throughout the country.
    The scope of orders placed through the branches will be available at SantanderTFI.pl.
  • No additional charges from employers or employees for access to dedicated PPK online services and the helpline.

Our advantages

  • More than 20 years in the investment fund market.
  • One of the largest and most experienced management companies in the Polish market.
  • Assets under management with a value over PLN 14 billion.*
  • Near 140 thousand loyal customers.
  • Years of experience in the establishment and management of Employee Pension Schemes (since 2001) and Individual Pension Accounts
  • (since 2004), the value of assets accumulated in Individual Pension Accounts maintained by Santander TFI is more than PLN 350 million.*

*as at 31 July 2020

Contact us

Zbigniew Najman

Zbigniew Najman Sales Director

Contact us

801 123 801 tfi@santander.pl