The Department for Works and Pension (DWP) have laid the draft regulations for a Pension Automatic Enrolment (AE) thresholds operational for pay reference periods commencing from 6th April 2021.
The draft regulation can be found at:-
And PAYadvice.UK had predicted, there is no change to lower earnings level, and the upper level is increased in line with National Insurance Upper Earnings Limit (UEL). There is no change to earnings trigger
Increase of amount
2. In section 13(1) of the Act (which deals with qualifying earnings and the amounts constituting the lower and upper thresholds of the qualifying earnings band), in paragraph (b), for “£50,000” substitute “£50,270”.
Rounded figures
3. For the purposes of sections 3(6B), 5(7B) and 13(2) of the Act, for a pay reference period referred to in an entry in column 1 of the table—
(a)the amount of a jobholder’s earnings which triggers the automatic enrolment, or as the case may be, the automatic re-enrolment of the jobholder pursuant to sections 3 and 5 respectively of the Act, is the rounded figure(5) in the corresponding entry in column 2 of the table;
(b)the lower amount of qualifying earnings (see section 13(1)(a) of the Act), is the rounded figure in the corresponding entry in column 3 of the table(6);
(c)the upper amount of qualifying earnings (see section 13(1)(b) of the Act), is the rounded figure in the corresponding entry in column 4 of the table(7).
PAYadvice.UK 21/1/2021 updated 20/2/2021
