• The Automatic Enrolment earnings trigger is to be frozen at £10,000 Feb 6, 2018
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    The automatic enrolment trigger determines whether a person is eligible to be automatically enrolled into a workplace pension scheme. The trigger is to be frozen at £10,000 and the lower and upper thresholds are to remain aligned with the National Insurance Contributions (NICs) Lower Earnings Limit (LEL) and Upper Earnings Limit (UEL).

    The qualifying earnings band sets minimum contribution levels for money purchase pension schemes. The band is also used to define who can opt-in if they are under the earnings trigger. The table below shows the proposed automatic enrolment earnings trigger and qualifying earnings band for 2018-19.


    The government reviews/revises these earnings triggers every year. The supporting analysis states that these decisions have been reached as a result of several key considerations.

    Stability for employers is crucial. The automatic enrolment review 2017 highlights the need for stability as the post staging period of the policy is implemented. Staging is not yet complete, but the phasing of contributions is set to begin in April 2018. The current triggers are there to provide consistency for both individuals and employers in the coming year while balancing levels of affordability and saving.


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    Written by Holly Mc Hugh | BrightPay Payroll Software
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