The minimum contribution level required for an automatic enrolment scheme is based on qualifying earnings.
There is a minimum total amount that has to be contributed by the employee, the employer, and the government in the form of tax relief.
Qualifying earnings include:
For 2017/18 the qualifying earnings start at £5,876 up to a limit of £45,000.
For example, if you were earning £18,000 a year, your contribution would be a percentage of £12,124 (the difference between £5,876 and £18,000).
The qualifying earnings bands are expected to change each tax year.
To allow you to spread the cost of your employer duties you can phase in the minimum contributions from 2013 to 2019.
There is a minimum total amount that has to be contributed by the employee, the employer, and the government in the form of tax relief.
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