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]?’ ….