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Automatic Enrolment: Thresholds for 2018/19

Published 19th December 2017

The Government has announced the salary thresholds for automatic enrolment for 2018/19.

The most relevant for local councils are:

  • the threshold above which employees aged between 22 and State Pension Age must be auto-enrolled in a qualifying pension scheme remains at a salary of £10,000 per annum
  • the threshold above which employees can 'opt in' to a qualifying pension scheme remains tied to the National Insurance Lower Earnings Limit, which for 2018/19 will be a salary of £6,032 per annum.

Councils should review the effect of these changes in the light of any salary increases for 2018/19, whether because of increments or a pay offer.‚Äč

The Government has also announced proposals for future changes to automatic enrolment, including reducing the age threshold from 22 to 18 and removing the Lower Earnings Limit threshold (so that all employees would be able to 'opt in' to a qualifying pension scheme and pension contributions will be based on the whole of an employee's salary). 

These changes, which require primary legislation, will not take effect for several years, probably in the mid-2020s.

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