2021/2022 Automatic Enrolment Threshold and ‘Qualifying Earnings’

Automatic enrolment requires employers to enrol all workers, who work in the UK and who satisfy specific age and earnings criteria into a qualifying workplace pension, and to pay at least the minimum level of contributions. 

Automatic enrolment threshold

The automatic enrolment earnings trigger determines who is eligible to be automatically enrolled into a workplace pension by their employer, in terms of how much they earn. 

The earnings threshold to be auto-enrolled into a workplace pension has been frozen at £10,000 for 2021/2022.  

Qualifying earnings band 

‘Qualifying earnings’ are the minimum earnings that pension contributions are usually based on, if you contribute to a workplace pension: 

They include: 

• salary
• wages
• overtime
• bonuses and commission
• statutory sick pay
• any statutory pay received during paternity, maternity, adoption or any other kind of family leave. 

Some employers use a different earnings basis though – usually either pensionable earnings or total earnings.

The following changes will be made to the qualifying earnings band for 2021/2022: 

The upper limit has been increased in line with the National Insurance Upper Earnings Limit.