The DWP has announced (and as now reflected in a draft statutory instrument that has been laid before Parliament) the thresholds that will apply for the 2016/17 tax year for the purposes of the automatic enrolment trigger (the level of earnings from which a worker becomes eligible for auto-enrolment) and the qualifying earnings bands (the range of earnings on which the employer is required to pay contributions if a defined contribution scheme is being used for auto-enrolment purposes). It is proposed that the thresholds will be as follows:
- the earnings trigger will remain at £10,000; and
- the qualifying earnings band will be £5,824 – £43,000 (a slight increase in the latter from £42,385 for the 15/16 tax year).
Employers subject to auto-enrolment (or for whom compliance is pending) should ensure that their payroll systems are suitably adapted to incorporate these values for the 16/17 tax year.