Employment business ISS has launched the National Employment Savings Trust (Nest) to comply with its auto-enrolment duties.
From 1 July, all eligible employees had 1% of salary deducted, which ISS matched. In line with auto-enrolment legislation, employees’ pension contributions will rise to 3% of salary by 2017 with ISS adding another 2% to total 5%. Staff contributions will increase to 5% by October 2018 coupled with a 3% employer top up to total 8%.
Graeme Harker, director at ISS, said: “We welcome this government initiative and are delighted to be partnering with Nest as our scheme provider.
“Many of our staff are low to middle-income earners and pension planning for their retirement may not be high on their list of priorities.
“We are glad to help incentivise them to plan for retirement by contributing to their pension pot.
“Effective financial planning is very much at the core of the ISS ethos. We pride ourselves in the tax planning we offer our employees through our business model ensuring they take home more of their hard-earned pay.
“We feel it’s equally important they have adequate pension income for them to enjoy a comfortable and worry-free retirement. We feel this new pension initiative will help provide this.”