Almost half of medium size employers are paying more than the minimum 2 per cent pensions contributions to employees, The Pensions Regulator has revealed.
In its Ongoing Duties Survey – Summer 2018 published today, 11 October, TPR found 47 per cent of employers were paying over the minimum 2 per cent, with 34 percent paying more for all employees and a further 14 per cent paying more to some employees.
According to the research, 26 per cent of small businesses were paying over the minimum contribution and 22 per cent of micro employers were doing the same.
In April, pension contributions rose from 2 per cent to 5 per cent, and are set to increase again to 8 per cent in April next year.
The research, which surveyed 300 micro employers, 300 small employers and 200 medium employers, was aimed at tracking employers' awareness around their on-going automatic enrolment, re-enrolment duties.
Regarding awareness around the next rate rise in April 2019, 96 per cent of medium size employers were aware this was happening, compared to 64 per cent of micro employers and 83 per cent of small employers.
Commenting on the findings, TPR director of auto-enrolment, Darren Ryder, said: “It’s great news that employers are continuing to find their ongoing duties quick and easy to do, staff are saving more and we are continuing to build on the success of automatic enrolment.”
Despite the findings, average contributions into private sector DC pension schemes during 2017 fell to 3.4 per cent over September, according to the Office for National Statistics.
The ONS has found that contributions into private sector DC schemes fell from 4.2 per cent in 2016 and have decreased significantly from 2012’s level of 9.7 per cent.
On average, members contributed 1.2 per cent and employers 2.1 per cent.