Many auto enrolling employers contributing more than legal obligations
17 November 2014
New research by the Chartered Institute of Personnel and Development (CIPD) shows that many employers are contributing substantially more in respect of their auto enrolled employees than the legislation requires.
The report on the latest CIPD survey of 1,080 employers shows that the average employer contribution is 5.6 per cent of salary, with employees typically contributing 4.7 per cent, compared to the legal minimum of 1% for both employers and workers.
One potential worry for the future is that nearly half of employers yet to enrol in the scheme anticipate restricting future pay growth to pay for auto-enrolment, while 19 per cent envisage job cuts and hiring reductions.