PL: Employee Capital Plans calculator
Calculator shows how Employee Capital Plans (Polish: PPK) may affect the further state pension pay-outs in Poland.

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Calculation data - your age, state-pension preferences and macroeconomic data

Saving period and earnings
Your age nowyears old
Your desired state pension ageyears old
Monthly gross salaryPLN / month
Monthly PPK contributions
Worker contribution%
Employer contribution%
Pay-out period
The amount you will pay-out once after the end of saving
how long do you want to receive a pension from PPKyears
Estimated rates of return and inflation
Expected rate of return during saving%
Expected rate of return during paying-out%
Expected inflation rate%

Summary - your state-pension from PPK

One time pay-out
The amount you will pay-out once after the end of saving20433.00PLN
Capital gains tax (19%)PLN
The amount is at your disposal (on-hand)PLN
Regular pay-outs
The amount you will be paying-out monthly until the end of funds517.86PLN / month
Years of regular pay-outs10years

Summary - capital, which you'll collect in PPK

Saving period and earnings
Total saving time30years
Monthly gross salary5000.00PLN / month
Monthly PPK contributions
Worker contribution100.00PLN / month
Employer contribution75.00PLN / month
Government contribution20.00PLN / month
Total amount of contributions195.00PLN / month
Collected capital
Sum of worker contributions36000.00PLN
Sum of employer contributions27000.00PLN
Sum of government contributions7200.00PLN
Total collected capital81730.27PLN

Summary - cost of participation in PPK and taxes

Monthly cost
Employer contribution75.00PLN / month
Worker contribution100.00PLN / month
Employer contribution income tax14.00PLN / month
Total cost189.00PLN / month
Annual cost
Employer contributions900.00PLN / year
Worker contributions1200.00PLN / year
Employer contributions income tax168.00PLN / year
Total cost2268.00PLN / year
Net-sallary increase after withdraw from PPK
(assuming that the employer's cost is identical)
Monthly salary increase "on hand"161.00PLN / month
Annual salary increase "on hand"1932.00PLN / year

Step I: Collecting capital via monthly contributions

During 30 years of saving you will accumulate a total capital of 81730.27 PLN on your PPK account.
During this time, the monthly cost of participation in the program will be 189 PLN, including PIT tax on the employer's contribution.
If you withdraw from the program, your monthly net salary may be 161 PLN higher, assuming the same employer cost.
N.o.Saved capital [PLN]PPK contributionsPredicted investment resultsCapital at the end of year [PLN]Your age at the end of year
Contributions payed-in by worker [PLN]Contributions payed-in by employer [PLN]Government surchargeInvestment income [PLN]Capital part eaten by inflation [PLN]Effective investment income [PLN]
Contributions payed-in by government [PLN]Employer contribution tax [PLN]Effective government contribution (after the tax) [PLN]
10.001200.00900.00490.00168.00322.000.000.000.002590.0031
22590.001200.00900.00240.00168.0072.0090.65-64.7525.904955.9032
34955.901200.00900.00240.00168.0072.00173.46-123.9049.567345.4633
47345.461200.00900.00240.00168.0072.00257.09-183.6473.459758.9134
59758.911200.00900.00240.00168.0072.00341.56-243.9797.5912196.5035
612196.501200.00900.00240.00168.0072.00426.88-304.91121.9714658.4736
714658.471200.00900.00240.00168.0072.00513.05-366.46146.5817145.0537
817145.051200.00900.00240.00168.0072.00600.08-428.63171.4519656.5038
919656.501200.00900.00240.00168.0072.00687.98-491.41196.5722193.0739
1022193.071200.00900.00240.00168.0072.00776.76-554.83221.9324755.0040
1124755.001200.00900.00240.00168.0072.00866.42-618.87247.5527342.5541
1227342.551200.00900.00240.00168.0072.00956.99-683.56273.4329955.9742
1329955.971200.00900.00240.00168.0072.001048.46-748.90299.5632595.5343
1432595.531200.00900.00240.00168.0072.001140.84-814.89325.9635261.4944
1535261.491200.00900.00240.00168.0072.001234.15-881.54352.6137954.1045
1637954.101200.00900.00240.00168.0072.001328.39-948.85379.5440673.6546
1740673.651200.00900.00240.00168.0072.001423.58-1016.84406.7443420.3847
1843420.381200.00900.00240.00168.0072.001519.71-1085.51434.2046194.5948
1946194.591200.00900.00240.00168.0072.001616.81-1154.86461.9548996.5349
2048996.531200.00900.00240.00168.0072.001714.88-1224.91489.9751826.5050
2151826.501200.00900.00240.00168.0072.001813.93-1295.66518.2654684.7651
2254684.761200.00900.00240.00168.0072.001913.97-1367.12546.8557571.6152
2357571.611200.00900.00240.00168.0072.002015.01-1439.29575.7260487.3353
2460487.331200.00900.00240.00168.0072.002117.06-1512.18604.8763432.2054
2563432.201200.00900.00240.00168.0072.002220.13-1585.80634.3266406.5255
2666406.521200.00900.00240.00168.0072.002324.23-1660.16664.0769410.5956
2769410.591200.00900.00240.00168.0072.002429.37-1735.26694.1172444.6957
2872444.691200.00900.00240.00168.0072.002535.56-1811.12724.4575509.1458
2975509.141200.00900.00240.00168.0072.002642.82-1887.73755.0978604.2359
3078604.231200.00900.00240.00168.0072.002751.15-1965.11786.0481730.2760
SUM81730.2736000.0027000.007450.005040.002410.0039480.95-28200.6811280.2781730.27-

Step II: One-time pay-out after end of savings

After saving period, you'll pay-out once 20433.00 PLN (25% of capital)
This amount will be tax-free.

Step III: Payment of remaining capital via monthly pension

You'll have the amount of 81730.27 PLN to distribute as a regular, monthly payments.
The amount of a single payment will be 517.86 PLN per month.
The regular payout time will be 10 years.
N.o.Saved capital [PLN]Predicted investment resultsCapital pay-out [PLN]Capital at the end of year [PLN]Your age at the end of year
Investment income [PLN]Capital part eaten by inflation [PLN]Effective investment income [PLN]
161297.271685.67-1532.43153.24-6214.3355236.1961
255236.191519.00-1380.90138.09-6214.3349159.9562
349159.951351.90-1229.00122.90-6214.3343068.5363
443068.531184.38-1076.71107.67-6214.3336961.8764
536961.871016.45-924.0592.40-6214.3330839.9565
630839.95848.10-771.0077.10-6214.3324702.7266
724702.72679.32-617.5761.76-6214.3318550.1567
818550.15510.13-463.7546.38-6214.3312382.2068
912382.20340.51-309.5630.96-6214.336198.8369
106198.83170.47-154.9715.50-6214.330.0070

Step IV: PPK assets run-out

Funds accumulated in PPK will run out when you will be 70 years old.
After this time, you will only have a basic pension from ZUS (so-called the first pillar), IKE / IKZE (so-called third pillar) or other private savings.

Some facts

  • Employee capital plans (polish: PPK) is a private saving system for employees in Poland.
  • From the point of view of employees, participation in the PPK program is voluntary. However, if you opt out, you must repeat your decision every four years. Otherwise, as the employee you will be automatically enrolled in the program.
  • From the point of view of employers, participation in the PPK program is mandatory. The employer is obliged to ensure, that employees who want to participate in the PPK program can do it at his workplace.
  • The essence of the PPK program is based on additional, monthly contributions deducted from the amount earned by the employee. This contribution is independent of the pension contribution paid to Social Insurance Institution (polish: ZUS).
  • A single contribution was divided by the legislator into three parts:
    • employee contribution (from 1.5% to 4%) - part deducted from salary which is tax-free,
    • employer's contribution (from 2% to 4%) - part deducted from the salary on which PIT tax should be paid,
    • government surcharge - partial tax refund paid from the employer's contribution, the maximum tax refund in 2019 is 20 PLN per month (up to PLN 240 per year).
  • Funds collected on PPK account are invested in capital markets. Part of the funds is intended for purchase of shares (so-called share part), and part in debt securities (so-called debt part).
  • The introduction of PPK in Poland coincided with the liquidation of Open Pension Funds (polish: OFE). However, participation in PPK requires payment of an additional contribution. Contributions, which have been deducted from the salary to OFE so far, will be fully transferred to Social Insurance Institution (polish: ZUS).
  • PPK funds can be payed-out in two ways depending on the eployee's preferences:
    • as one-time pay-out of part or all of the savings,
    • as monthly pay-outs until the savings run out.
  • Payments from PPK are tax-free if the pay-out is made after the age of 60 and:
    • in the case of a one-time payment the amount does not exceed 25% of the accumulated capital,
    • in the case of monthly salaries, they are paid for not less than 10 years.
  • What distinguishes PPK from current pension solutions in Poland, e.g. OFE or ZUS is the fact that they do not guarantee a lifetime benefit. The total sum of pay-outs is limited to funds accumulated on the PPK account. The advantage of this solution is no extra-cost for current employees by the need to pay benefits to pensioners with increasing life expectancy. However, the disadvantage is that such pensioners says only with a basic pension from ZUS when PPK funds are depleted.
  • The deadline for implementing PPK by employers is scheduled for 2019-2021:
    • enterprises and institutions employing at least 250 people at the day of December 31, 2018 - scheduled from July 1, 2019,
    • enterprises and institutions employing at least 50 people at the day of June 30, 2019 - scheduled from January 1, 2020,
    • enterprises and institutions employing at least 20 people at the day of December 31, 2019 - scheduled from July 1, 2020,
    • other employers and public finance sector entities - scheduled from 1 January 2021

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