The latest figures from the Department for Work & Pensions reveal that more than one million employees have been automatically enrolled into a workplace pension since the initiative was launched in October last year.
The scheme forms part of the Government's drive to address the pensions crisis by encouraging more people to invest in their retirement.
All companies will be legally required to contribute a minimum of 2% of employee earnings, made up from 0.8% from employees, 1% from the employer and 0.2% as a result of tax relief.
However, these amounts will increase to a minimum of a 4% contribution from the employee, 3% from the employer, and 1% in tax relief from October 2018.
This means the equivalent of 8% of an employee's earnings (including overtime, but excluding any earnings over £42,275) will go into their pension pot.
So far, however, it is still early days for the initiative, with only the biggest companies (over 250 employees) being required to implement auto-enrolment.
Medium-sized firms will have to start auto-enrolling employees from April next year, while small businesses with 49 workers or less will be required to implement the changes from May 2017.
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