Pensions and auto-enrolment

37% of small businesses are paying above the 1% legal minimum contribution to an employee’s workplace pension.

The People’s Pension survey of 898 business owners that have already passed their staging date found that the majority (70%) said auto-enrolment was beneficial to their staff.

50% said it was good for their business.

Further findings:

  • 60% said auto-enrolment should apply to all firms
  • 51% support lower paid workers and self-employed people currently outside the process
  • 46% say firms have a key role to play in minimising opt outs for employees
  • 43% said there should be no opt outs for workers.

Darren Philip, director of policy and market engagement at The People’s Pension, said:

“Those that have already staged are more positive, which might be because having been through the process they know it’s not as hard as they expect – and can see how beneficial it is for their employees.”

Managing contributions

Both your business and employees are required to pay money into a workplace pension scheme. The following contributions apply:

Date Employer minimum contributions Employee minimum contributions
Until 5 April 2018 1% 0.8%
Between April 2018 and April 2019 2% 2.4%
From April 2019 3% 4%


Some schemes may have additional charges or one-off set up costs which could affect your contributions. According to The Pensions Regulator some schemes have monthly fees ranging from £0 – £36.

How you manage your payroll may also lead to additional costs on top of your contributions.

Our team can help you with auto-enrolment.