Automatic enrolment earnings thresholds announced

The Government has announced the pensions auto-enrolment thresholds for the 2013/14 tax year. 

From 6 April 2013, the auto-enrolment earnings trigger will increase from £8,105 to £9,440 in line with the income tax threshold; the lower limit of qualifying earnings will increase from £5,564 to £5,668 (in line with the national insurance contributions (NICs) lower earnings limit); and the upper limit of qualifying earnings will decrease from £42,465 to £41,450 to align with the NICs upper earnings limit. 

The proposals are contained in the Government response to the consultation on revision proposals for the automatic enrolment earnings trigger and the qualifying earnings band 2013/14 (PDF format, 121K) (on the DWP website), which follows the Government's consultation, launched in September 2012, on changes to the auto-enrolment earnings thresholds. 

From their staging date, employers must auto-enrol eligible employees when they earn more than the earnings trigger for auto-enrolment, but contributions will kick in only from the employee threshold for national insurance contributions. Employers also have certain duties in respect of workers who earn at or below the earnings trigger for auto-enrolment. 

Also 

Automatic enrolment earnings thresholds review and revision 2013 / 2014 - consultation on revision proposals for the automatic enrolment earnings trigger and the qualifying earnings band (PDF format 89K) Read the Government's consultation document launched in September 2012 (on the DWP website). 

Pensions auto-enrolment flowchart This flowchart guides employers through the issues that they need to consider prior to their pensions auto-enrolment staging date. 

Pensions auto-enrolment: checklist XpertHR presents a checklist to help employers prepare for pensions auto-enrolment.