Automatic enrolment: earnings trigger and qualifying earnings band 2016/17
16 December 2015
After a review of the automatic enrolment earnings trigger and qualifying earnings band, the Government has decided to freeze thresholds at 2015-16 figures, apart from the qualifying earnings band upper level which will increase to £43,000.
The automatic enrolment earnings trigger determines who gets automatically enrolled into a workplace pension.
The qualifying earnings band sets minimum contribution levels for money purchase pension schemes. The minimum of the band is also relevant for defining who can opt in if they earn under the earnings trigger.
The government reviews these every year and revises them if appropriate. Analysis has been published which supports the review of the earnings trigger and qualifying earnings band for 2016/17.
- The lower level of qualifying earnings will remain at £5,824.
- The earnings trigger for automatic enrolment will remain at £10,000
- The upper level of qualifying earnings will increase from £42,385 to £43,000