More than two thirds of employers have now automatically enrolled workers into a pension scheme, with many contributing substantially more than is legally required, CIPD figures have revealed
The average employer contribution is 5.6 per cent of salary, with employees typically contributing 4.7 per cent, the CIPD’s latest Labour Market Outlook report found. The legal minimum requirement for employers and workers is 1 per cent each.
In the private sector, employer contributions have typically been 4.5 per cent, while employees have contributed 3.9 per cent on average.
Opt-out rates have been lower than expected too. Just 7.4 per cent of eligible workers have chosen to leave the scheme, with the figure climbing slightly to 7.7 per cent in the private sector.
Chosen excerpts by Job Market Monitor. Read the whole story at Employers go ‘above and beyond’ on legal pension requirements – People Management Magazine Online.
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