Auto-Enrolment Earnings Thresholds for 2019/20
By Carley Jones on
The government has confirmed the auto-enrolment earnings trigger and qualifying earnings bands for 2019/20 following its annual review.
The earnings trigger determines who is eligible to be automatically enrolled in a workplace pension by their employer in terms of how much they earn.
The band is defined by the lower earnings limit and the upper earnings limit. These are set in legislation and are reviewed annually.
It has been confirmed that the earnings threshold for Automatic Enrolment will stay frozen at £10,000 for 2019/18. However, it has been announced that the lower limit qualifying earnings band will increase from £6,032 to £6,136 and the upper limited will increase from £46,350 to £50,000.
From April 2019 the minimum contributions for a qualifying pension scheme will rise from 5% to 8% of qualifying earnings and the minimum employer contribution will increase from 2% to 3%.
The government estimates by 2019/20 there will be an extra £18.4 billion of workplace pension savings per year as a result of Auto-Enrolment, this is before any changes to the thresholds are considered.