Contact Us

Employers of UK SMEs are increasingly going above and beyond their automatic enrolment pension duties by contributing considerably more than the bare minimum.

A new CIPD survey has found that while the legal minimum requirement is that employers and employees contribute one per cent each, the average employer has increased this number to 5.6 per cent of an employee’s annual salary.

The average percentage in the private sector drops a little to 4.5 per cent; however the fact it is still four times the minimum requirement remains an encouraging sign.

Charles Cotton, performance and reward adviser, CIPD, said: “So far, pension automatic enrolment has been a success.

“It’s been the wake-up call we needed to get the UK saving for the future. Employers are in many cases going above and beyond the requirements and the majority of workers have opted to stay in the scheme.

“However, in the coming months, we need to keep a close eye on the number of workers leaving the pension scheme and what can be done to encourage them to stay.

“We also need to explore ways that we can increase the amount of money going into saving for retirement.

“To do this, it’s essential that employees are encouraged to look at their employer’s pension contribution as well as their take home pay when thinking about their total earnings.

“This is particularly important at a time when many people are experiencing either wage freezes or subdued wage growth.”

Thousands of SMEs are yet to enrol in automatic pension schemes. 48 per cent of those surveyed who are yet to enrol expect they will have to limit future pay growth in order to pay for the scheme while almost one-in-five (19 per cent) forecast a reduction in hiring and even an increase in job cuts.


Image: Simon Cunningham

Date published 20 Nov 2014 | Last updated 20 Nov 2014

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

0800 0523 555

Or contact us