PPK in a small company: do I have to, what does it cost, how to choose an institution

Employee Capital Plans (PPK) are a private, long-term retirement savings programme financed jointly by the employee, the employer and the state. Introduced in 2019, they have covered all employers since 2021, including one-person businesses with a single employee. For many small employers PPK is still a source of uncertainty: “do I have to do this if I have one employee?”, “how much time will it take me each month?”, “how do I choose an institution?”.

The short answer: in principle yes, if you employ at least one person under an employment contract or a contract of mandate with full contributions (there are exclusions, described below). The longer answer is in this article.

Who must have PPK

The obligation covers all employers who employ people aged 18–54 under an employment contract or another contract with compulsory pension and disability insurance. There are no industry exceptions and no minimum number of employees.

It applies to:

• A sole trader business with employees
• Companies of all forms (civil-law partnership, general partnership, limited company, joint-stock company, limited partnership)
• Foundations and associations running activities with employees
• Public administration bodies and NGOs

It does not apply to (a micro-entrepreneur without employees):

• A sole trader business with no employees: you are not an “employee” in your own company
• Partnerships where only the partners work
• Companies where all employees have filed to opt out of PPK

Structure of contributions: who pays how much

PPK is co-financed by three parties:

The employee (compulsory)

• Basic contribution: 2% of gross pay
• Additional contribution (voluntary): up to 2% of gross pay
• Maximum in total: 4% of gross pay

With low earnings (up to 1.2 × the minimum wage, which in 2026 means up to about PLN 5,767 gross) the employee can reduce the basic contribution to 0.5%.

The employer (compulsory)

• Basic contribution: 1.5% of gross pay
• Additional contribution (voluntary): up to 2.5% of gross pay
• Maximum in total: 4% of gross pay

The state (bonus)

• Welcome payment: PLN 250, one-off (after 3 months)
• Annual top-up: PLN 240 a year (condition: contributions ≥ 3.5% × 6 × the minimum wage annually)

What it costs the company

The employer’s contribution is a tax-deductible cost (it reduces the tax base). It is not taxed in the employee’s hands as income (unlike, for example, private medical care).

Example for 5 employees (2026 conditions)

| Employee | Gross | Employer’s 1.5% contribution | |-----------|--------|-------------------------| | 1: minimum wage | PLN 4,806 | PLN 72.09 | | 2: specialist | PLN 6,500 | PLN 97.50 | | 3: specialist | PLN 7,200 | PLN 108.00 | | 4: manager | PLN 10,000 | PLN 150.00 | | 5: manager | PLN 12,000 | PLN 180.00 | | Total | PLN 40,506 | PLN 607.59 / month |

Annually: about PLN 7,290 for 5 employees. Proportionally less for a smaller company.

Choosing a financial institution

You choose a financial institution registered with the Polish Development Fund (PFR). Each one offers a similar product, and the differences mainly concern management fees and investment results.

The main selection criteria

1. Management fee: charged annually on assets. Differences in fees between institutions add up to significant sums over the long term.
2. Investment results: a 3–5 year history. Available in the PFR comparisons and on mojeppk.pl.
3. Quality of administrative service: how easy it is to register an employee, what the monthly report looks like, whether there is integration with your HR and payroll system.
4. Consultation with employee representatives: if you have a trade union or an employee council, consultation is required before the choice.

List of institutions

The current full list: mojeppk.pl/lista-instytucji.

Timetable: from when you calculate

You conclude the agreement to run PPK no earlier than after 14 days and no later than by the 10th day of the month following the month in which 3 months of the employee’s employment passed. You transfer the contributions by the 15th day of the month following the month in which they were calculated.

The employee can opt out of PPK at any time. The opt-out applies until the end of February in the 4-year cycle (so-called automatic enrolment). Every 4 years (the next is 1 April 2027) the employee is automatically brought back into PPK if they opted out earlier, and has 30 days to opt out again.

The employer’s monthly obligations

Every month you must:

1. Calculate the contributions: on each gross pay of employees in PPK (1.5% employer + 2% employee deducted from pay)
2. Deduct the employee’s contribution from the payroll
3. Transfer to the institution: by the 15th day of the following month
4. Keep the documentation: declarations, opt-outs, registrations

Many HR and payroll programs have a PPK module. It is enough to mark the employee as a “PPK participant”, and the program calculates and generates the transfers itself.

Once a year

• January: information to employees on the amount of funds in PPK (PIT-PPK for settlement purposes)
• February: preparation for automatic enrolment (every 4 years)
• December: closing the year, a report to the PFR

An employee’s opt-out: how it works

An employee who does not want to be in PPK files a declaration of opt-out (a form available from the financial institution). The opt-out:

• Applies from the month following the filing
• Is reversible: the employee can return at any time
• Is “reset” in the 4-year cycle: every 4 years automatic enrolment brings them back

Important: the declaration of opt-out is filed by the employee to the employer, not to the institution. The employer passes the information to the institution.

Employers often do not realise that their 1.5% contribution still has to be calculated: it is a “lost benefit” if the employee opts out. In practice, if your whole team opts out, the cost of PPK = PLN 0 (the company does not pay for non-participants).

PPK as a retention tool

Although PPK is formally provided by law, some companies treat the employer’s voluntary contributions (up to 2.5%) as part of the pay package:

• “In our company the employer pays 4% into PPK instead of the compulsory 1.5%”
• “The extra 2.5% is about PLN 180–250 a month of long-term saving”
• “After 30 years (work from age 25 to 55) at an average return of 5% a year, the result is about PLN 200,000 of capital”

This is a legal and effective way of rewarding key employees without burdening current contributions to the Social Insurance Institution (ZUS). The employer’s PPK contribution is not subject to ZUS contributions.

PPK is a legal obligation, but it is also worth treating as a tool for building loyalty.

Summary

PPK in a small company is not a source of big costs: about PLN 150 a month per employee on an average salary. It is compulsory for every employer, and the penalties for not having agreements are high. Choosing a financial institution takes 1–2 weeks, and the formal launch of the system about 30 days. At Profais we provide HR and payroll service; PPK is charged separately, according to the price list. If your company does not yet have PPK and employs at least one person, start with an audit.

Sources: mojeppk.pl, pfr.pl, the Act of 4 October 2018 on Employee Capital Plans (Journal of Laws 2018, item 2215).