Research: The Pension Policy Institute - Briefing Note 112

The latest briefing note from The Pension Policy Institute is out now, and finds imminent rises to pension auto-enrolment contribution rates will actually impact higher earners more than those on lower pay.

Its own number-crunching reveals those earning between £12,600 and £16,000 will see an increase in their take-home pay after taking into account all of the policy changes. Meanwhile, those employees who would have paid the reduced higher NI contribution of 2% will now have a greater proportion of their income subject to the 12% NI contributions.

It finds:

* The effect on take-home pay is greatest when income hits £47,600 where the effects of higher contributions and the shift in the NI upper earnings limit are compounded

* The results are an overall reduction of 1.9% in take- home pay