Auto-enrolment and rising longevity stifle wage growth #AS2013

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Increasing employer pension contributions driven by rising longevity, auto-enrolment (AE) and poor defined benefit (DB) scheme returns has held back wage growth, according to Treasury figures.

The Autumn Statement document released today showed that the total proportion of employee compensation accounted for by earnings has fallen since 2000. The proportion of compensation afforded to non-wage benefits such as pension contributions grew from 13% in 2000 to 17.3%, the Treasury said. "This has been primarily driven by increasing pension contributions and employer National Insurance Contributions (NICs). Between 2000 and 2010 these costs increased by over 50% in real terms," the report said. It added that increased pension contributions have been driven partly by "policy an...

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