# Pensions and savings: what UK employers provide in 2026

> UK pension benchmarks 2026: default contribution rates, matching, salary sacrifice and the 2029 NIC cap, with the base behind every figure.

Source: https://lumihr.co.uk/resources/pensions-savings
Author: David Whitfield (https://lumihr.co.uk/about/david-whitfield)
Data: lumi reward benchmark · national · collection window 2026 H1

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*lumi benchmarks · Pensions & savings · Collection window 2026 H1 · By David Whitfield*

> **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?](/research/workplace-pensions-2026))
> - 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?](/research/salary-sacrifice-2029-cap))

This area covers the workplace pension and the savings benefits around it: the scheme type, the default contribution rates for auto-enrolled joiners, matching above the default, salary sacrifice as the default route, and how employers are preparing for the £2,000 cap on pension salary sacrifice from April 2029.

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](/register).

## 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).

## Related

- [All resources](/resources) — every paper, guide and template, filterable by topic.
- [How the numbers are made](/methodology) — collection, the floor of three, and how positions are read.
- [Who is in the sample](/sample) — the organisations behind every figure, by sector and by size.

## What the research says

### Have UK employers assessed the cost of the 2029 salary sacrifice NIC cap?

- 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.
- 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).

Read the paper: https://lumihr.co.uk/research/salary-sacrifice-2029-cap

### What default pension contribution rate do UK employers set for auto-enrolled joiners?

- 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%.
- 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).

Read the paper: https://lumihr.co.uk/research/workplace-pensions-2026

## The public figures

- [Pension scheme type (main population)](https://lumihr.co.uk/metrics/pension-scheme-type-main-population): 89.1% answered “DC” on pension scheme type (main population) (n = 267)
- [Meets PLSA quality-mark threshold](https://lumihr.co.uk/metrics/meets-plsa-quality-mark-threshold): 80.5% answered “No” on meets PLSA quality-mark threshold (n = 262)
- [Pension contribution matching level](https://lumihr.co.uk/metrics/pension-contribution-matching-level): 51.7% answered “None” on pension contribution matching level (n = 267)
- [Pension via salary sacrifice by default](https://lumihr.co.uk/metrics/pension-via-salary-sacrifice-by-default): 51.7% answered “Yes” on pension via salary sacrifice by default (n = 267)
- [Employer pension cost share of total reward](https://lumihr.co.uk/metrics/employer-pension-cost-share-of-total-reward): The median employer pension cost share of total reward is 7% (n = 267)
- [Earnings basis for pension contributions](https://lumihr.co.uk/metrics/earnings-basis-for-pension-contributions): 45.6% answered “Qualifying earnings (band)” on earnings basis for pension contributions (n = 263)
- [2029 salary sacrifice cap impact assessed](https://lumihr.co.uk/metrics/2029-salary-sacrifice-cap-impact-assessed): 50.9% answered “Not yet” on 2029 salary sacrifice cap impact assessed (n = 220)
- [Intended response to the 2029 salary-sacrifice reform](https://lumihr.co.uk/metrics/intended-response-to-the-2029-salary-sacrifice-reform): 71.9% answered “Maintain scheme unchanged” on intended response to the 2029 salary-sacrifice reform (n = 210)
- [Employer NIC savings shared with employees](https://lumihr.co.uk/metrics/employer-nic-savings-shared-with-employees): 9.4% have employer NIC savings shared with employees in place; a further 7.8% have it partly in place (n = 192)
- [Default contribution for auto-enrolled joiners](https://lumihr.co.uk/metrics/default-contribution-for-auto-enrolled-joiners): 81.3% answered “Statutory minimum only” on default contribution for auto-enrolled joiners (n = 235)
- [Pension contribution auto-escalation](https://lumihr.co.uk/metrics/pension-contribution-auto-escalation): 65% answered “No” on pension contribution auto-escalation (n = 266)
- [Mid-life MOT / retirement-planning support](https://lumihr.co.uk/metrics/mid-life-mot-retirement-planning-support): 72.1% answered “No” on mid-life MOT / retirement-planning support (n = 262)
- [ESG or net-zero default pension fund](https://lumihr.co.uk/metrics/esg-or-net-zero-default-pension-fund): 51.7% answered “Standard default” on ESG or net-zero default pension fund (n = 203)
- [Temporary pension contribution flexibility](https://lumihr.co.uk/metrics/temporary-pension-contribution-flexibility): 77.4% answered “No” on temporary pension contribution flexibility (n = 266)
- [Workplace savings alongside the pension](https://lumihr.co.uk/metrics/workplace-savings-alongside-the-pension): 25.8% have workplace savings alongside the pension in place (n = 264)
- [Help to Save promotion for eligible staff](https://lumihr.co.uk/metrics/help-to-save-promotion-for-eligible-staff): 64.4% answered “No” on help to Save promotion for eligible staff (n = 264)
- [Payroll-deducted loans / hardship fund](https://lumihr.co.uk/metrics/payroll-deducted-loans-hardship-fund): 61.7% answered “No” on payroll-deducted loans / hardship fund (n = 264)
- [Payroll giving](https://lumihr.co.uk/metrics/payroll-giving): 90.5% answered “No” on payroll giving (n = 263)

## Guides and templates

- [How to prepare for the 2029 salary sacrifice cap](https://lumihr.co.uk/guides/how-to-prepare-salary-sacrifice-cap)
- [How to set employer pension contributions](https://lumihr.co.uk/guides/how-to-set-employer-pension-contributions)