Auto-enrolment earnings thresholds

: Last Updated: 15 April 2020

What are the contribution limits and earnings thresholds for employer pension automatic enrolment?

This is an 'At a glance' guide. Click here for detailed guidance (subscribers' version) to auto-enrolment together with links to sample letters for clients.

Contribution Levels
Both employee and employer make regular contributions to the employee's pension scheme under pensions automatic enrolment.

The minimum total contribution, which is made up of employer's and employee's contributions inclusive of tax relief, are based on a percentage applied to earnings above the threshold up to the upper limit which are linked to the NIC thresholds. The percentages increased during the transitional 'phasing' period as follows;

	Employers staging date	Employer	Employee	Total minimum contribution
Phase 1	To 05/04/18	1%	1%	2%
Phase 2	06/04/18 - 05/04/19	2%	3%	5%
Phase 3	06/04/19 onwards	3%	5%	8%

For example:

John earns £11,000 per annum. If his employer was required to auto-enrol him in 2016/17 the employer and employee will have to contribute a minimum of 2% of his salary in excess of the lower earnings threshold of £5,824, giving a contribution of £103.52 in total, of which at least half must be contributed by the employer.

Note that the increases in total contributions to 5% and then 8% were originally scheduled to take place in October 2017 and October 2018. The six month delay to align the increases with the tax year was announced at the Autumn Statement 2015.

There is an alternative contribution model, the Pensionable earnings basis

Pensionable earnings are the higher of:

The employer's definition of pensionable earnings, and
Basic pay (which excludes variable elements of pay such as commission, bonuses and overtime)

Under the pensionable earnings basis, contributions are based on the employee's earnings from £1 upwards and not by reference to earnings within the bandings.

Employers using a defined contribution scheme can choose not to base contributions on banded earnings if they satisfy one of the following minimum contributions requirements.

	Basis 1	Basis 2	Basis 3
Total Contribution	9% pensionable earnings	8% pensionable earnings	7% total earnings
Including employee contribution of up to	5%	5%	4%
Reference to total earnings	None	Pensionable earning must be no less than 85% of total earnings	All earnings must be pensionable

Earnings thresholds

You are automatically enroled into your employer's pension when your earnings trigger the qualifying earnings threholds.

2020/21	Annual	1 week	Fortnight	4 weeks	1 month	1 quarter	Bi-annual
Lower level of qualifying earnings	£6,240	£120	£240	£480	£520	£1,508	£3,120
Earnings trigger for automatic enrolment	£10,000	£192	£384	£768	£833	£2,499	£4,998
Upper level of qualifying earnings	£50,000	£962	£1,924	£3,847	£4,167	£11,588	£25,000

2019/20	Annual	1 week	Fortnight	4 weeks	1 month	1 quarter	Bi-annual
Lower level of qualifying earnings	£6,136	£118	£236	£472	£512	£1,508	£3,068
Earnings trigger for automatic enrolment	£10,000	£192	£384	£768	£833	£2,499	£4,998
Upper level of qualifying earnings	£50,000	£962	£1,924	£3,847	£4,167	£11,588	£25,000

2018/19	Annual	1 week	Fortnight	4 weeks	1 month	1 quarter	Bi-annual
Lower level of qualifying earnings	£6,032	£116	£232	£464	£503	£1,508	£3,016
Earnings trigger for automatic enrolment	£10,000	£192	£384	£768	£833	£2,499	£4,998
Upper level of qualifying earnings	£46,350	£892	£1,783	£3,566	£3,863	£11,588	£23,175

2017/18	Annual	1 week	Fortnight	4 weeks	1 month	1 quarter	Bi-annual
Lower level of qualifying earnings	£5,876	£113	£226	£452	£490	£1,469	£2,938
Earnings trigger for automatic enrolment	£10,000	£192	£384	£768	£833	£2,499	£4,998
Upper level of qualifying earnings	£45,000	£866	£1,731	£3,462	£3,750	£11,250	£22,500

2016/17	Annual	1 week	Fortnight	4 weeks	1 month	1 quarter	Bi-annual
Lower level of qualifying earnings	£5,824	£112	£224	£448	£485	£1,456	£2,912
Earnings trigger for automatic enrolment	£10,000	£192	£384	£768	£833	£2,499	£4,998
Upper level of qualifying earnings	£43,000	£827	£1,654	£3,308	£3,583	£10,750	£21,500

2015/16	Annual	1 week	Fortnight	4 weeks	1 month	1 quarter	Bi-annual
Lower level of qualifying earnings	£5,824	£112	£224	£448	£485	£1,456	£2,912
Earnings trigger for automatic enrolment	£10,000	£192	£384	£768	£833	£2,499	£4,998
Upper level of qualifying earnings	£42,385	£815	£1,630	£3,260	£3,532	£10,596	£21,193

2014/15	Annual	1 week	Fortnight	4 weeks	1 month	1 quarter	Bi-annual
Lower level of qualifying earnings	£5,772	£111	£222	£444	£481	£1,443	£2,886
Earnings trigger for automatic enrolment	£10,000	£192	£384	£768	£833	£2,499	£4,998
Upper level of qualifying earnings	£41,865	£805	£1,611	£3,221	£3,489	£10,467	£20,933

2013/14	Annual	1 week	Fortnight	4 weeks	1 month	1 quarter	Bi-annual
Lower level of qualifying earnings	£5,668	£109	£218	£436	£473	£1,417	£2,834
Earnings trigger for automatic enrolment	£9,440	£182	£364	£727	£787	£2,360	£4,720
Upper level of qualifying earnings	£41,450	£797	£1,594	£3,188	£3,454	£10,363	£20,725