The deadline for PPK implementation in small and medium-sized companies comes to an end
The companies covered by phase II and III must sign the agreement for the PPK management until 27 October 2020 at the latest. So far, only 25% of them have fulfilled this obligation, but the time is running out.
Due to the coronavirus pandemic, phase II and III of the PPK implementation have overlapped and the obligation to introduce Employee Capital Plans (PPK) has covered companies with 20 to 249 employees. The choice of a financial institution for many companies has already come to an end and it is time for the second stage, which will end with signing of an agreement for the PPK management (the deadline is 27 October).
However, according to the data collected by the Polish Development Fund, only a small part (20 thousand) of all employers covered by this obligation have so far signed the required agreements. It is also worth noting that small and medium-sized entities (80 thousand) obliged to implement the PPK under the second and third phase employ in total over 3.7 million people, and although the deadline for choosing a financial institution in consultation with the employee representation has already passed, a significant part of businesses still must sign the management agreements. There is not much time left, unfortunately, and the failure to fulfil this obligation is subject to high fines (from PLN 1,000 to even PLN 1,000,000).
3 stages of the PPK implementation
The PPK implementation process consists of 3 stages - selection of a financial institution together with an information campaign, implementation of administration processes and signing the agreement for PPK management (27 October) and the PPK ongoing administration with signing the agreement for PPK running. The final stage for small and medium-sized companies will end on 10 November 2020.
Learn more: PPK: Information obligations of employers