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This document sets out the government’s response to the consultation to review the earnings thresholds for automatic enrolment into a workplace pension for April 2015 to March 2016.
We received 37 responses to the consultation.
We propose to lay a draft Revision Order before Parliament in early 2015 which specifies the following amounts:
- £5,824 for the lower limit of the qualifying earnings band
- £42,385 for the upper limit of the qualifying earnings band
Employers use amount someone earns between the lower and upper qualifying bands to work out how much that person must pay into a workplace pension.
The amount someone must earn to be automatically enrolled into a workplace pension (the earnings trigger) will remain at £10,000.
Automatic enrolment means that employers must enrol all workers into a workplace pension if they meet certain conditions.
How much someone earns helps to decide:
- whether they will be enrolled into a workplace pension
- the minimum amount they must pay into the pension
The government reviews these earnings levels every year.
This consultation seeks views on:
- what we should take into account when reviewing the earnings thresholds for April 2015 to March 2016
- the proposed earnings levels for April 2015 to March 2016
We are interested in hearing from:
- trade unions
- employee representatives
- pension industry professionals, including scheme administrators, payroll professionals, accountants, independent financial advisers and employee benefit consultants
- anyone else with an interest
Read more about automatic enrolment into workplace pensions.