The Department for Work and Pensions has announced the auto enrolment qualifying earnings band and earnings trigger. The thresholds are reviewed each year and revised if appropriate, taking into account the prevailing thresholds for National Insurance contributions, PAYE personal tax allowance, basic state pension, inflation and any other factors that the Secretary of State considers relevant. Both the earnings trigger and lower band remain fixed however the upper earnings limit has risen. These are in line with the earning limits for National Insurance purposes.
For the tax year 2016/17 the bands will be as follows:-
Upper band £43,000
Lower band £5,824
Earnings Trigger £10,000
The draft order also confirms the correct rounded amounts which employers should use for pay reference periods of lengths ranging from one week to six months. The draft order is due to come into force on 6 April 2016 subject to parliamentary approvals.