Automatic Workplace Pensions

Under Statutory Instrument 2012/1506 (soon to be in force), for 2012/13 workers who earn above the income tax threshold (£8,105) will be automatically enrolled in workplace pensions. Employers will have to pay pensions contributions equal to at least eight per cent of those workers’ earnings between £5,564 and £42,475.

Automatic enrolment starts from October 2012. The automatic enrolment and re-enrolment “earnings trigger” is the level of earnings at which employers are obliged to automatically enrol (and re-enrol) eligible jobholders into a qualifying workplace pension scheme. The earnings trigger will be the same as the PAYE income tax personal allowance for the tax year 2012/13: £8,105. Employers are then obliged to pay contributions at least equal to eight per cent of a band of “qualifying earnings” made up of salary, wages, commission, bonuses, overtime and statutory sickness, maternity, paternity and adoption pay.

 

 

NICK BARNETT

Published on 13/08/2012

Hewetts News

09/09/2020: New Notice Periods For Tenant Evictions

With the ongoing effect of the Coronavirus, notice periods for tenants have been extended yet again Read +

06/07/2020: Extended Court Hours to Tackle Backlog

Guidance has recently been released indicating that extended court hours will be introduced to try and help ease the backlog created by the recent pandemic. Read +

More News...

Request a Callback

×

Please provide the following information and we'll arrange for one of our solicitors to give you a call-back within the next 2 working days.