The Government has confirmed that the earnings level at which automatic enrolment is triggered will increase to £10,000 with effect from April of this year. The previous earnings level was £9,440 and the result is that 170,000 people will not be eligible to for automatic enrolment in a pension scheme.
The full document entitled Review Of The Automatic Enrolment Earnings Trigger And Qualifying Earnings Band For 2014/15: Supporting Analysis was published by the Department for Work and Pensions (DWP) in December last year.
Lower and Upper Earnings Limits
The lower and upper earnings limits on which auto enrolment contributions are based have been set at £5,772 and £41,865 respectively and the DWP says: “Around 10 million individuals are estimated to be in the eligible target population for auto-enrolment, of which around 37 per cent are women.”
For help with automatic enrolment, contact Nicola Prince, Employee Benefits Director, on 01284 773763 or email email@example.com