Pension auto-enrolment triggers and qualifying earnings bands announced

Pension auto-enrolment triggers and qualifying earnings bands announced
 

The Department of Work and Pensions has announced the auto-enrolment pensions thresholds that will apply for the 2016/17 tax year covering:

• the level of earnings from which a worker becomes eligible for auto-enrolment (the automatic enrolment trigger); and
• the qualifying earnings bands i.e. the range of earnings on which the employer is required to pay contributions (if a defined contribution scheme is being used for auto-enrolment purposes).

The proposed thresholds will be as follows:

• the earnings trigger will stay at £10,000; and
• the qualifying earnings band will be £5,824 – £43,000.