The Department for Work and Pensions has published its research and analysis for the Review of the Automatic Enrolment Earnings Trigger and Qualifying Earnings Band for 2023/24.
The Pensions Act 2008 requires that the earnings trigger and the lower & upper limit qualifying earnings bands are reviewed each tax year.
It has been proposed that the secretary of state will maintain the current levels set in the 2022/23 tax year into the 2023/24 tax year.
This means there is no change for payroll professionals or providers to implement in the new tax year.
| Trigger | Lower limit qualifying earnings band | Upper limit qualifying earnings band |
|---|---|---|---|
Current (2022/23) | £10,000 | £6,240 | £50,270 |
Proposed (2023/24) | £10,000 | £6,240 | £50,270 |
The automatic enrolment earnings trigger determines at what point an eligible person 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.
Under automatic enrolment, employers must enrol all workers into a workplace pension if they satisfy age and earnings criteria.