Pension qualifying earnings band figures and minimum contributions for tax year 2019/20
The Automatic Enrollment Order for 2019 has now been published. As expected, the earnings trigger has remained frozen for another year, which determines when an eligible worker is entitled to be automatically enrolled into a qualifying workplace pension scheme, at £10,000 from 6 April 2019. It also continues to align the qualifying earnings band with National Insurance Contributions from 6 April 2019, this means the lower limit of the band will increase from £6,032 to £6,136 and the upper limit will increase from £46,350 to £50,000. The qualifying earnings band is used to calculate minimum contribution levels for money purchase schemes.
In addition, the minimum total contribution to a workplace pension scheme will increase from 06 April 2019, it is currently 5% but this will increase to 8% of qualifying earnings. 3% of this (up from 2%) must come from the employer. The remaining contribution must come from the worker which is 5% of qualifying earnings (up from 3%).
Our clients will be reminded of the pension increases by Accounts Navigator.
Posted by Cassey Nixon on
1st February 2019
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