Employee Capital Plan is a prosocial programme - PM

2019-01-08, 17:26 update: 2019-01-10, 10:34
Photo: PAP/Rafał Guz
Photo: PAP/Rafał Guz
The Employee Capital Plan (PPK) is a social programme without any pitfalls for 11 million employees, Prime Minister Mateusz Morawiecki said on Tuesday launching a voluntary private pension saving scheme, co-sponsored by employees, employers and the state.

Morawiecki stressed that this marks the establishment of a general, long-term savings system in Poland, one which will also serve as a further impulse to economic development.

The PM expressed hope that the creation of the PPK program will be continued beyond political divisions, because it is important for millions of Poles. On the one hand, because it will increase the wealth of citizens, on the other, because it will enable the sustainable economic growth of the country.

He stressed that long-term savings are absolutely fundamental to long-term economic development. "This is not only understood by economists, we all know (...) that we need domestic savings, so as not to fall into excessive dependence on the rest of the world," Morawiecki said.

The head of the Polish government also underlined the prosocial nature of the PPK scheme. "This is a programme for over 11 million employees, a programme without any small print, without any pitfalls and dangers because (...) three parties are taking part in it: the state, employers and employees on a voluntary basis," he said.

Morawiecki noted that less than four months ago, Poland became recognised as one of the developed countries which already have programmes like PPK. "Poland in a symbolic way, thanks to the programme (PPK - PAP), joins the group of developed countries," indicated the PM .

President Andrzej Duda signed the PPK law on November 19, 2018. The act came into force on January 1, 2019. 

The new legislation envisages establishment of a long-term saving system geared to aid low-income earners. It is also planned as a stimulus for Poles to save more money. The plan foresees monthly rates for participants at 2 to 4 percent and a 0.5 percent rate for the lowest-bracket earners, with employers contributing 1.5 to 4 percent of their gross income to the scheme. The programme is to embrace about 11.5 million employees, for whom it will ensure an additional retirement pension.