Auto Enrolment triggers remain unchanged

The automatic enrolment (AE) earnings trigger and qualifying earnings band for 2018/19 remain unchanged, following a government review.

The existing earnings trigger of £10,000 was found to be at the correct level and will not change for 2018/19. In addition, the link with the National Insurance Contributions (NICs) Lower Earnings Limit will be maintained at its 2018/19 value of £6,032 as the lower limit of the qualifying earnings band.

The review also confirmed that mandatory employer contributions should still be capped at the NICs Upper Earnings Limit at its 2018/19 value of £46,350.

The review considered the latest analytical evidence, the policy objectives of AE and the evidence received during the course of the Automatic Enrolment Review 2017.

The Secretary of State reached these decisions as a result of several key considerations, in particular, the need for stability for employers.

‘With staging not yet complete and the phasing (the planned increases in minimum contribution rates for qualifying scheme) of contributions set to begin in April 2018. The Automatic Enrolment Review 2017 highlights the need for stability as the post staging period of the policy is implemented,’ stated the report.

Additionally, it was felt that the current triggers and limits were understood and would continue to provide an important element of consistency for both employers and individuals in the coming year, while striking a balance between meaningful levels of saving and affordability.

Further information about the government review can be found here: https://www.gov.uk/government/publications/automatic-enrolment-review-of-the-earnings-trigger-and-qualifying-earnings-band-for-201819.

For further information on the earnings thresholds for automatic enrolment please visit: http://www.thepensionsregulator.gov.uk/automatic-enrolment-earnings-threshold.aspx

  •  
  •  
  •  
  •  

Comments are closed.

Latest News