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Employee Capital Plans

The Act of October 4th 2018 imposes an obligation on entrepreneurs to join Employee Capital Plans – a program for collecting retirement savings. The largest employers (those employing over 250 people) will be the first to introduce the ECP’s on 1st of July.

 

Obligated next, to apply the new law, will be employers employing at least 50 people – from January 1st , 2020. Companies employing at least 20 people – from July 1st, 2020. For other entities, the obligation to apply the new regulations, will take place on January 1st, 2021.

 

The basic payment financed by the ECP participant is between 2% and 4% of his remuneration, whereas the employer will pay a premium of 1.5% to 4% of employee’s remuneration, so the maximum payment for ECP can amount to 8% for one employee. A one-time welcome contribution – PLN 250 and an annual surcharge of PLN 240 will be financed from the state budget.

 

An entity that does not enter into a ECP contract, within the prescribed period, will be fined up to 1.5% of the entire remuneration fund. The employer who encourages employees, to give up savings in Employee Capital Plans, is subject to the same penalty. There is also a fine of PLN 1,000 to PLN 1,000,000 for not concluding a contract for running a ECP, not making payments for ECP, not keeping relevant documentation or providing false data in the case of ECP.

 

Source: https://inforfk.pl