Workplace pensions £17b

£17 billion extra a year will be saved into workplace pensions as a result of auto-enrolment by 2019/20, according to the Department for Work and Pensions.

Estimates show that this figure will be made up of around:

  • £8 billion in employee contributions
  • £6 billion in employer contributions
  • £2 billion of tax relief on employee contributions.

Further findings:

  • 11 million workers are estimated to be eligible for auto-enrolment
  • 10 million workers are estimated to be saving more as a result of auto-enrolment by 2018
  • three quarters of all workers are estimated to be eligible for auto-enrolment.

Richard Harrington, minister for pensions, said:

“For some people, this may be the first time they have saved in this way and we must help them build a big enough savings pot so they can enjoy a comfortable retirement.”

Minimum contributions

The employer and employee are required to pay a minimum percentage of qualifying earnings.

For 2016/17 qualifying earnings are between £5,824 and £43,000 a year. The first £5,824 is not included in the calculation of an employee’s contribution, setting an upper limit of qualifying earnings of £37,176.

Salary, overtime, bonuses, commission and statutory pay are all included when calculating qualifying earnings.

The minimum contribution levels are:

  Until April 2018 2018/19 From 6 April 2019
Employer 1% 2% 3%
Employee 0.8% 2.4% 4%
Government tax relief 0.2% 0.6% 1%


Our team can advise you on auto-enrolment.