Key findings
- Defined contribution (DC) is the common scheme type for the main population, at 89.2% of organisations (n = 269). Defined benefit (DB) is rare at 9.3%, and hybrid schemes are rare at 1.5%. (What default pension contribution rate do UK employers set for auto-enrolled joiners?)
- 52.0% of organisations offer pension via salary sacrifice by default (n = 269). This is the common answer. The other 48.0% do not. (Have UK employers assessed the cost of the 2029 salary sacrifice NIC cap?)
Every figure on this page comes from the lumi reward benchmark, with the number of organisations answering shown beside it. The papers below give the full distributions, and the public figures link to one page per metric. The register lists 32 metrics in this area, among them default contribution for auto-enrolled joiners, pension contribution matching level and pension via salary sacrifice by default; every one has a public definition in the metric register.
What the research says
2 papers
Have UK employers assessed the cost of the 2029 salary sacrifice NIC cap?
51.4%n = 222have not yet assessed the cost
- 52.0% of organisations offer pension via salary sacrifice by default (n = 269). This is the common answer. The other 48.0% do not.
- 51.4% have not yet assessed the workforce cost impact of the £2,000 NIC cap on pension salary sacrifice from April 2029 (n = 222). 32.9% have modelled it and 15.8% have carried out a high-level review.
- 71.2% intend to maintain their pension salary sacrifice scheme unchanged under the cap (n = 212, "Not applicable" excluded). 15.1% intend to restructure, for example through employer contributions, and 8.0% intend to withdraw salary sacrifice.
Also in the paper
- 83.0% do not share employer NIC savings from pension salary sacrifice with employees (n = 194, "Not applicable" excluded). 17.0% share them fully or partially (9.3% + 7.7%).
- The common participation band for salary sacrifice arrangements is 10–24% of employees, reported by 31.4% of organisations (n = 220, "Not applicable" excluded). 14.5% report participation of 50% or more.
- Among organisations answering on a salary sacrifice car scheme, 68.4% run it as EV-led and 23.5% as EV-only (n = 98, "Not applicable" excluded).
What default pension contribution rate do UK employers set for auto-enrolled joiners?
81.4%n = 237set the default at the statutory minimum
- Defined contribution (DC) is the common scheme type for the main population, at 89.2% of organisations (n = 269). Defined benefit (DB) is rare at 9.3%, and hybrid schemes are rare at 1.5%.
- None, meaning no pension contribution matching, is the common answer, at 51.7% (n = 269). 48.2% offer matching at some level (19.3% + 14.1% + 10.0% + 4.8%).
- Qualifying earnings (band) is the common basis for calculating contributions, at 45.3% (n = 265). Basic pay is an alternative, at 38.1%.
Also in the paper
- 19.7% say their scheme meets the PLSA quality-mark threshold of 12% total and 6% employer (n = 264).
- 81.4% set the default employee contribution rate for auto-enrolled joiners at the statutory minimum only (n = 237, "Not applicable" excluded).
- 35.1% operate auto-escalation of pension contributions (19.8% by default + 15.3% on an opt-in basis; n = 268).
- Employer pension contributions cost a median of 7% of total reward spend, with a 25th percentile of 5.5% and a 75th percentile of 9.5% (n = 268).
The public figures
18 metric pagesOne page per metric, each with its figure, its base and its collection window, from lumi's public UK reward metrics. The register lists 32 metrics in this area; a figure is published where enough organisations have answered.
- Pension scheme type (main population)89.1% “DC”n = 267
- Meets PLSA quality-mark threshold80.5% “No”n = 262
- Pension contribution matching level51.7% “None”n = 267
- Pension via salary sacrifice by default51.7% “Yes”n = 267
- Employer pension cost share of total rewardThe median employer pension cost share of total reward is 7%n = 267
- Earnings basis for pension contributions45.6% “Qualifying earnings (band)”n = 263
- 2029 salary sacrifice cap impact assessed50.9% “Not yet”n = 220
- Intended response to the 2029 salary-sacrifice reform71.9% “Maintain scheme unchanged”n = 210
- Employer NIC savings shared with employees9.4% have employer NIC savings shared with employees in place; a further 7.8% have it partly in placen = 192
- Default contribution for auto-enrolled joiners81.3% “Statutory minimum only”n = 235
- Pension contribution auto-escalation65% “No”n = 266
- Mid-life MOT / retirement-planning support72.1% “No”n = 262
- ESG or net-zero default pension fund51.7% “Standard default”n = 203
- Temporary pension contribution flexibility77.4% “No”n = 266
- Workplace savings alongside the pension25.8% have workplace savings alongside the pension in placen = 264
- Help to Save promotion for eligible staff64.4% “No”n = 264
- Payroll-deducted loans / hardship fund61.7% “No”n = 264
- Payroll giving90.5% “No”n = 263
Read off lumi's public metric pages as at 2026-10-31. Members see every metric in the register, against the peer group they choose.
Guides and templates
2 items
Frequently asked questions
What default pension contribution rate do UK employers set for auto-enrolled joiners?
In the lumi reward benchmark, defined contribution (DC) is the common scheme type for the main population, at 89.2% of organisations (n = 269). Defined benefit (DB) is rare at 9.3%, and hybrid schemes are rare at 1.5%.
Have UK employers assessed the cost of the 2029 salary sacrifice NIC cap?
In the lumi reward benchmark, 52.0% of organisations offer pension via salary sacrifice by default (n = 269). This is the common answer. The other 48.0% do not.
What is the average employer pension contribution in the UK?
The floor is set by law: a defined contribution (DC) scheme used for automatic enrolment must receive at least 8% of qualifying earnings, with at least 3% from the employer (for 2026/27, qualifying earnings are pay between £6,240 and £50,270 a year). In the lumi reward benchmark, 81.4% of UK organisations set the default contribution rate for auto-enrolled joiners at the statutory minimum only (n = 237), 51.7% offer no pension contribution matching (n = 269), and employer pension contributions cost a median of 7% of total reward spend (n = 268).
What is the 2029 salary sacrifice cap, and what are UK employers doing about it?
From 6 April 2029, only the first £2,000 a year of pension salary sacrifice will be free of National Insurance; amounts above that attract National Insurance. In the lumi reward benchmark, 51.4% of UK organisations have not yet assessed the workforce cost impact of the cap, 32.9% have modelled it and 15.8% have carried out a high-level review (n = 222); 71.2% intend to maintain their pension salary sacrifice scheme unchanged under the cap (n = 212).