Automatic Enrolment Earnings Trigger and Qualifying Earnings Band Rates set for 2012/2013Friday, July 6, 2012
The DWP has confirmed the levels of the earnings thresholds for the initial 2012/13 auto enrolment year. The earnings trigger, which must be met before the auto enrolment obligations apply, is to be set by reference to PAYE personal allowance rates. Therefore, it will initially be set at £8,105 (as opposed to £7,475 as previously reported).
The qualifying earnings band (the band of earnings on which minimum contributions are required) is to be set by reference to the lower and upper limits for National Insurance Contributions. Therefore, the band for the tax year 2012/2013 will be £5,564 and £42,475 respectively.