PPK reform - UNDERSTANDING TAX IMPACT AND CONTRIBUTIONS IN POLAND

Hi all, Not sure if you are aware of the PPK reform, but essentially it'a an auto-enrolment pension scheme which starts roll out in 2019.

I understand generally the contribution aspects and how the scheme works, but have two basic question:

1. When the deduction of between 2-4% is made from the employee, is it taken from net pay or gross pay (i.e. is the pension contribution taxed). if it is taxed at point of contribution, do you then receive the pension tax free in old age or are you essentially taxed twice?

2. Are the contributions made based on gross salary, or do they include other aspects like car allowance/benefits etc. For e.g. if I had a theoretical salary of 12k and a car allowance of 3k, would my 4% contribution be 4% X 15k or 4% x 12k?

thanks in advance

Out of interest went on the relevant Polish websites.
Contributions will be taken from the gross amount, this is the amount on which other deductions (such as income tax and insurance contributions ) are based. When you get to the age of 60 (same age for men and women) and the fund pays out, rules relating to income tax apply, so that if your earnings are above the tax-free amount, you will pay tax.

Thanks Tezza.