01872 271947 | This email address is being protected from spambots. You need JavaScript enabled to view it.

Register for our Newsletter

Auto-enrolment qualifying earnings band figures for tax year 2019/20 confirmed

Source: The National Archives | | 21/01/2019

The draft Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2019 has now been published. As expected, it freezes the earnings trigger, which determines when an eligible worker is entitled to be automatically enrolled into a qualifying workplace pension scheme, at £10,000 from 6 April 2019. It also continues to align the qualifying earnings band with National Insurance Contributions from 6 April 2019, so the lower limit of the band will increase from £6,032 to £6,136 and the upper limit will increase from £46,350 to £50,000. The qualifying earnings band is used to calculate minimum contribution levels for money purchase schemes.

In addition, the minimum total contribution to a workplace pension scheme will increase from 5% to 8% of qualifying earnings from 6 April 2019. At least 3% of this (up from 2%) must come from the employer. The remaining contribution must come from the worker, so if the employer pays the minimum 3%, the worker’s minimum contribution will be 5% of qualifying earnings (up from 3%).



Latest News

What you can do with your pension pot
13/08/2019 - More...
Pension Wise is a free government...

When you can claim back VAT on purchase of a car
13/08/2019 - More...
There are complex VAT rules that...

Child Benefit charge if income exceeds £50,000
13/08/2019 - More...
The High Income Child Benefit charge...