Following its annual review of the automatic enrolment earnings trigger and the lower and upper limits of the qualifying earnings band for the 2024/25 financial year, the government has confirmed that all three current rates will be frozen. This means that:

• the automatic enrolment earnings trigger will remain at £10,000
• the lower limit of the qualifying earnings band will remain at £6,240
• the upper limit of the qualifying earnings band will remain at £50,270.

The earnings trigger determines the point at which an eligible worker must be automatically enrolled by their employer into a qualifying workplace pension scheme. If a worker earns under the earnings trigger but earns at least the lower limit of the qualifying earnings band, they will not be automatically enrolled but they can still require their employer to put them into the pension scheme by serving notice to opt in. The lower and upper limits of the qualifying earnings band also set minimum contribution levels for money purchase pension schemes.

Source: New feed