Beta version#
BETA TEST VERSION OF THIS ITEM
This online calculator is currently under heavy development. It may or it may NOT work correctly.
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However, please VERIFY all results on your own, as the level of completion of this item is NOT CONFIRMED.
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This online calculator is currently under heavy development. It may or it may NOT work correctly.
You CAN try to use it. You CAN even get the proper results.
However, please VERIFY all results on your own, as the level of completion of this item is NOT CONFIRMED.
Feel free to send any ideas and comments !
Calculation data - your age, state-pension preferences and macroeconomic data#
| Saving period and earnings | ||
| Your age now | ||
| Your desired state pension age | ||
| Monthly gross salary | ||
| 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 PPK | ||
| 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 saving | 20433.00 | |
| Regular pay-outs | ||
| The amount you will be paying-out monthly until the end of funds | 517.86 | |
| Years of regular pay-outs | 10 | |
Summary - capital, which you'll collect in PPK#
| Saving period and earnings | ||
| Total saving time | 30 | |
| Monthly gross salary | 5000.00 | |
| Monthly PPK contributions | ||
| Worker contribution | 100.00 | |
| Employer contribution | 75.00 | |
| Government contribution | 20.00 | |
| Total amount of contributions | 195.00 | |
| Collected capital | ||
| Sum of worker contributions | 36000.00 | |
| Sum of employer contributions | 27000.00 | |
| Sum of government contributions | 7200.00 | |
| Total collected capital | 81730.27 | |
Summary - cost of participation in PPK and taxes#
| Monthly cost | ||
| Employer contribution | 75.00 | |
| Worker contribution | 100.00 | |
| Employer contribution income tax | 14.00 | |
| Total cost | 189.00 | |
| Annual cost | ||
| Employer contributions | 900.00 | |
| Worker contributions | 1200.00 | |
| Employer contributions income tax | 168.00 | |
| Total cost | 2268.00 | |
| Net-sallary increase after withdraw from PPK (assuming that the employer's cost is identical) | ||
| Monthly salary increase "on hand" | 161.00 | |
| Annual salary increase "on hand" | 1932.00 | |
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.
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 contributions | Predicted investment results | Capital 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 surcharge | Investment 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] | |||||||||
| 1 | 0.00 | 1200.00 | 900.00 | 490.00 | 168.00 | 322.00 | 0.00 | 0.00 | 0.00 | 2590.00 | 31 |
| 2 | 2590.00 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 90.65 | -64.75 | 25.90 | 4955.90 | 32 |
| 3 | 4955.90 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 173.46 | -123.90 | 49.56 | 7345.46 | 33 |
| 4 | 7345.46 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 257.09 | -183.64 | 73.45 | 9758.91 | 34 |
| 5 | 9758.91 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 341.56 | -243.97 | 97.59 | 12196.50 | 35 |
| 6 | 12196.50 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 426.88 | -304.91 | 121.97 | 14658.47 | 36 |
| 7 | 14658.47 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 513.05 | -366.46 | 146.58 | 17145.05 | 37 |
| 8 | 17145.05 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 600.08 | -428.63 | 171.45 | 19656.50 | 38 |
| 9 | 19656.50 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 687.98 | -491.41 | 196.57 | 22193.07 | 39 |
| 10 | 22193.07 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 776.76 | -554.83 | 221.93 | 24755.00 | 40 |
| 11 | 24755.00 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 866.42 | -618.87 | 247.55 | 27342.55 | 41 |
| 12 | 27342.55 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 956.99 | -683.56 | 273.43 | 29955.97 | 42 |
| 13 | 29955.97 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1048.46 | -748.90 | 299.56 | 32595.53 | 43 |
| 14 | 32595.53 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1140.84 | -814.89 | 325.96 | 35261.49 | 44 |
| 15 | 35261.49 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1234.15 | -881.54 | 352.61 | 37954.10 | 45 |
| 16 | 37954.10 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1328.39 | -948.85 | 379.54 | 40673.65 | 46 |
| 17 | 40673.65 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1423.58 | -1016.84 | 406.74 | 43420.38 | 47 |
| 18 | 43420.38 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1519.71 | -1085.51 | 434.20 | 46194.59 | 48 |
| 19 | 46194.59 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1616.81 | -1154.86 | 461.95 | 48996.53 | 49 |
| 20 | 48996.53 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1714.88 | -1224.91 | 489.97 | 51826.50 | 50 |
| 21 | 51826.50 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1813.93 | -1295.66 | 518.26 | 54684.76 | 51 |
| 22 | 54684.76 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 1913.97 | -1367.12 | 546.85 | 57571.61 | 52 |
| 23 | 57571.61 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 2015.01 | -1439.29 | 575.72 | 60487.33 | 53 |
| 24 | 60487.33 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 2117.06 | -1512.18 | 604.87 | 63432.20 | 54 |
| 25 | 63432.20 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 2220.13 | -1585.80 | 634.32 | 66406.52 | 55 |
| 26 | 66406.52 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 2324.23 | -1660.16 | 664.07 | 69410.59 | 56 |
| 27 | 69410.59 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 2429.37 | -1735.26 | 694.11 | 72444.69 | 57 |
| 28 | 72444.69 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 2535.56 | -1811.12 | 724.45 | 75509.14 | 58 |
| 29 | 75509.14 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 2642.82 | -1887.73 | 755.09 | 78604.23 | 59 |
| 30 | 78604.23 | 1200.00 | 900.00 | 240.00 | 168.00 | 72.00 | 2751.15 | -1965.11 | 786.04 | 81730.27 | 60 |
| SUM | 81730.27 | 36000.00 | 27000.00 | 7450.00 | 5040.00 | 2410.00 | 39480.95 | -28200.68 | 11280.27 | 81730.27 | - |
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.
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.
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 results | Capital 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] | |||||
| 1 | 61297.27 | 1685.67 | -1532.43 | 153.24 | -6214.33 | 55236.19 | 61 |
| 2 | 55236.19 | 1519.00 | -1380.90 | 138.09 | -6214.33 | 49159.95 | 62 |
| 3 | 49159.95 | 1351.90 | -1229.00 | 122.90 | -6214.33 | 43068.53 | 63 |
| 4 | 43068.53 | 1184.38 | -1076.71 | 107.67 | -6214.33 | 36961.87 | 64 |
| 5 | 36961.87 | 1016.45 | -924.05 | 92.40 | -6214.33 | 30839.95 | 65 |
| 6 | 30839.95 | 848.10 | -771.00 | 77.10 | -6214.33 | 24702.72 | 66 |
| 7 | 24702.72 | 679.32 | -617.57 | 61.76 | -6214.33 | 18550.15 | 67 |
| 8 | 18550.15 | 510.13 | -463.75 | 46.38 | -6214.33 | 12382.20 | 68 |
| 9 | 12382.20 | 340.51 | -309.56 | 30.96 | -6214.33 | 6198.83 | 69 |
| 10 | 6198.83 | 170.47 | -154.97 | 15.50 | -6214.33 | 0.00 | 70 |
Step IV: PPK assets run-out#
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).
- employee contribution (from 1.5% to 4%) - part deducted from salary which is tax-free,
- 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.
- as one-time pay-out of part or all of the savings,
- 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.
- in the case of a one-time payment the amount does not exceed 25% of the accumulated capital,
- 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
- enterprises and institutions employing at least 250 people at the day of December 31, 2018 - scheduled from July 1, 2019,
See also#
If you want to learn more about taxes and other levies paid in Poland, check out our other calculators:
- Polish salary #1 (yearly) - see what is happening with your salary month by month, the calculator supports both an employment contract, a specific task contract and a job order contract",
- Polish earnings #2 (tax↔no tax) - simple conversion between gross and net earnings (on-the-hand),
- Polish earnings #3 (written order) - earnings calculator for the contract of job order contract,
- Polish earnings during sickness - calculator of salary during illnes paid by ZUS and your employer,
- Polish ZUS payments - a simple calculator of all social security contributions (polish: ZUS) for an employment contract with a breakdown into contributions paid by the employee and the employer (employer's cost),
- Polish ZUS: rates and base - current and archival social security contributions (polish: ZUS) for entrepreneurs (self-employed),
- Polish ZUS retirement - state pension calculator using "old rules", paid entirely from ZUS, the so-called "old pension",
- Polish OFE retirement - state pension calcualtor using "new rules paid from ZUS and OFE,
- Work time - check how many seconds, minutes, hours, days etc. of your life you spend at work,
- State pension age - check when you will be able to stop working and retire (polish retirement age calculator),
- Polish salary #4 (self-employment) - check how much you will earn on the invoice as the so-called freelancer in Poland [waek](self-employed),
- Average and minimum wages in Poland - current and archival minimum and average salaries in Poland,
- PL: Tax-free threshold archive - the amount below which you will not pay income tax, current and archival rates,
- PL: Tax-decreasing amount - calculator of the amount that reduces your income tax,
- Polish Employee Capital Plans (PPK) - calculator of contributions and future retirement pay outs from Employee Capital Plans (polish: PPK),
- Polish disability pension - calculator of the disability pension paid from ZUS,
- PIT rates in Poland (archive) - current and archival personal income tax rates (PIT) in Poland,
- CIT rates in Poland (archive) - current and archival corporate tax rates (CIT) in Poland,
- Real work cost in Poland (archive) - effective labor cost in Poland, historical and current values are presented,
- Polish accident insurance - the amount of the accident insurance contribution depending on the type of activity (polish PKD codes),
- Polish ZUS: preferential - calculator of preferential social security contributions (polish: ZUS) for entrepreneurs who start their business,
- Polish lump-sum tax rates - lump-sum tax rates by type of activity (polish PKWiU codes), both current and historical data are presented,
- Polish health contribution (lump-sum tax) - the amount of health contribution if you use lump-sum tax in Poland.
Tags and links to this website#
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