One in five automatically-enrolled members will benefit from generous employers who will pay more than their minimum 2% pension contributions, a survey by The People's Pension reveals.
As total contribution rates rise from 2% to 5% today - with minimum employer contributions rising from 1% to 2% - many employees will see their pension contributions triple from 1% to 3%.
However, 20% of employers said they will now pay more than their minimum contribution meaning savers have a smaller difference to make up, and therefore a smaller impact on their take-home pay.
The findings come from a telephone survey of 120 employers conducted by The People's Pension between February and March.
Head of policy Andy Tarrant said this may show "that these employers realise the value of their pension contributions" both for the employee and the business.
"We know that employer pension contributions are among the most valued employee benefits and are an important consideration for people when they're looking for a job," he continued. "By increasing contributions to above the minimum requirement, employers will not only help their staff save more for their retirement, but they may also benefit their business by helping to improve its recruitment and retention."
However, although these employers are being more generous than required, it is a smaller number than the 22% who until today were paying more than the 1% minimum required. Furthermore, fewer already have plans to do so when minimum employer contributions rise to 3% next April, with just 13% saying that would be the case.
Similarly, at the time of the survey, another 10% said they were unsure or did not want to say how they would act this financial year, while 18% said the same in relation to next year's rate rise.
"These figures signpost a need for continued employer engagement over the next 12 months, as they clearly show an increased number of employers unsure about what to do next year - perhaps unsurprisingly as the economic outlook is particularly uncertain," Tarrant continued.
The master trust's research also found that over three quarters (79%) of respondents said they had communicated the rate rise to their employees, with almost half (47%) saying they had sent out letters to their employees.
Another 30% had informed employees in a team or company meeting, while 23% had e-mailed their employees.
The research comes as a similar survey of employees by Now Pensions found more than four in five will continue to save into pensions now contribution rates have risen, with 64% having been aware of the increase ahead of the change.
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