One in five firms will freeze or cut wages to pay for staff pensions after introduction of new rules

Hard-pressed bosses are planning to ‘freeze  or cut’ their workers’ salaries as a result of the Government’s state pension  reforms, a bleak report warns today. 

Since October, new rules have forced bosses,  for the first time, to pay money into a pension for their  workers.

All staff over 22 who do not have a private  pension are automatically signed up to the state scheme. But the report, from  the Institute of Directors, says one in five bosses plan to recoup the cost by  freezing, or even cutting, their workers’ pay.

The new rules currently affect only large  firms, but will eventually involve all sizes.

A survey of more than 1,300 bosses asked: ‘How do you expect to meet the cost of automatic enrolement [into pensions]?’ ….







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