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The best job sectors for pension contributions
Auto-enrolment rules mean most staff have a workplace pension but some employers are more generous than others. We reveal the sectors that contribute the most.
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(Image credit: Getty Images/jean-marc payet)
Marc Shoffman
29 September 2025
in Features
Auto-enrolment continues to encourage more people to start pension saving and some employers are even contributing as much as 9% towards employee’s retirement savings.
Launched in 2012, auto-enrolment aims to encourage people to save for their retirement by automatically putting staff into pension schemes.
Anyone aged over 22 who earns a minimum of £10,000 salary from a job should be auto-enrolled into a pension.
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Government data shows saving levels have remained unchanged since the minimum contribution rates last increased in 2019 to 8% of qualifying earnings – made up of a minimum of 3% from employers and 5% from staff.
Median total contribution rates as a percentage of total pay are currently around 8%, with both employees and employers contributing around 4% of total pay on average.
But in some industries, employees could be earning as much 9% – we reveal the top sectors to make the most of your retirement pot.
The best jobs for pension contributions
A pension is a valuable perk of a job as it can reduce your tax bill and ensure you have money set aside for retirement.
Government data shows employees working in sectors such as hospitality are more likely to save at the minimum required level compared with sectors such as finance and insurance where higher wages mean they can afford to save more.
But some employers are more generous than others.
Official figures show the median employer contribution rate in financial services is 9.4% and staff in electricity, gas, steam and air conditioning supply are typically getting 8.4%.
Employers in mining and quarrying are contributing a median rate of 7%.
The media figure drops in lower paid sectors such as accommodation and agriculture where it is at 2.3% and 2.6% respectively.
Swipe to scroll horizontally
At AE Minimum
At or below 8% of total pay
Median Employee Contribution Rate
Median Employer Contribution Rate
Median Total Contribution Rate
Accommodation and food service activities
Agriculture, Forestry and Fishing
Administrative and support service activities
Construction
Human health and social work activities
Wholesale and retail trade; repair of motor vehicles and motorcycles
Arts, entertainment and recreation
Other Service Activities
Transportation and storage
Real estate activities
Manufacturing
Professional, scientific and technical activities
Water Supply, sewerage, waste management and remediation activities
Mining and Quarrying
Information and communication
Financial and insurance activities
Electricity, gas, steam and air conditioning supply
Should you choose a job based on the pension?
Most employers legally have to provide their staff with a pension but you may not find out how much they contribute until you actually start working unless you ask at a job interview.
Kevin Bailey, managing director of Wessex Investment Management, said low auto-enrolment rates are a good indication as to the value an employer places on you as an employee.
He added: “Yes, consider all emoluments however if auto-enrolment is no more than the minimum required then do not expect the employer to be too responsive to your needs as an employee.”
Samuel Mather-Holgate, financial adviser at Mather & Murray Financial, said the overall package needs to be considered when looking at job opportunities.
He said: “Whilst the auto-enrolment minimum contributions might not buy you a carton of milk when you retire, some employers are ultra generous. We recently came across a client whose employer was matching her 20% employee contributions. This is huge, and is a nailed-on way of securing a comfortable retirement with peace of mind.”
Even if your employer only contributes the minimum, that doesn’t have to stop you putting more into your pension.
Unsurprisingly, the government data shows the level of pension contributions is linked to how much people earn.
Almost half of those earning £10,000 to £20,000 per year are saving at the minimum levels compared with just one in 10 of those earning £60,000 to £70,000.
Eamonn Prendergast, chartered financial adviser at Palantir Financial Planning, said: “With the cost-of-living biting, many people prioritise take-home pay to cover mortgages and bills over long-term savings.
“Constant speculation about government reforms , from changes to tax-free cash, pension allowances, and even inheritance tax treatment only adds to the scepticism and discourages people from seeing pensions as a major factor when joining a company.
“That said, generous employer contributions can still make a meaningful difference over time, so they shouldn’t be overlooked, even if they’re no longer the deciding factor they once were.”
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Marc Shoffman
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Contributing editor
Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.
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