Home / Insights / Blog / Businesses Urged To Prepare For Pension Auto Enrolment

Businesses Urged To Prepare For Pension Auto Enrolment

Businesses Urged To Prepare For Pension Auto Enrolment

Small businesses are facing costs of £8,900 to comply with new pension auto-enrolment legislation, according to research. For small to medium-sized businesses, the figure is £12,600 to meet the requirements, which require a total of 33 administrative tasks, according to a report by economic consultancy Centre for Economic Business Research (Cebr).

Hefty Auto Enrolment Costs for London Firms

For companies employing up to 250 people, the cost is £15,600 while large companies employing up to 500 staff the average one-off cost would be £22,300. It would be even more for large companies in London, where the cost of labour would push the total cost up to £28,300. London-based firms should think about speaking to West-London based employment solicitors, who would be able to offer best practice guidance on meeting the new system. As well as the cost implication, experts believe the substantial administrative task for businesses will pose a challenge.

David White of Creative Auto Enrolment, which commissioned the research, recommended that companies begin discussing how they are going to tackle the challenge. He said: “With the clock ticking, businesses need to start thinking now about what their duties are under the new legislation and who within or outside their business can help them achieve this.”

Our Employment team provides advice on the employment aspects of all major business decisions, including upcoming pensions auto-enrolment. For advice, contact a member of the team, call us on 01895 207892 or email employment@ibblaw.co.uk.