The qualifying earnings band and earnings trigger amounts for auto enrolment have been published. The earnings trigger for 2019/20 will remain at £10,000 and the qualifying earnings band will be £6,136 – £50,000.
The automatic enrolment earnings trigger determines who is eligible to be automatically enrolled into a workplace pension by their employer in terms of how much they earn. There is also a qualifying earnings band in respect of which contributions to many auto enrolment schemes are made – the band is defined by the lower earnings limit and the upper earnings limit. The earnings trigger and the qualifying earnings bands are often jointly referred to as the Automatic Enrolment earnings thresholds. They are set in legislation and reviewed annually. It is a statutory requirement that the Secretary of State reviews all three thresholds in each tax year.
The lower earnings level of the band is also relevant to defining who falls into the category of ‘non-eligible job-holders’. People in this group can opt-in to their employer’s workplace pension and will received a mandatory employer contribution if they earn between the lower earnings limit and the earnings trigger.
Increase of minimum Auto Enrolment Contributions
On 6 April 2019, the minimum amount that will need to be paid into a workplace pension will increase to an overall minimum of 8% with employers contributing at least 3% of this.
The Pensions Regulator is contacting all employers to remind them of their duties.
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