As reported in our Spring Newsletter, the Auto Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2012 came into force on 15 June 2012 and confirms that:
- the earnings trigger (which is the level of qualifying earnings an eligible job holder must earn in a pay reference period to trigger the requirement to be auto enrolled) will be set for the current tax year at £8,105. This amount aligns with the PAYE threshold; and
- the lower end of the qualifying earnings band (used for calculating minimum contributions) will be set at £5,564. This is the same level as the lower earnings limit for paying National Insurance Contributions. The upper end of the qualifying earnings band is set at £42,475 and equates to the earnings limit for National Insurance Contributions.
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