Following a consultation process, it was determined by the Department for Work and Pensions (DWP) that the auto enrolment earning threshold limits for 2015/16 are as follows:
- Lower Qualifying Earning Limit (LQL) Â£5,824
- Upper Qualifying Earning Limit (UQL) Â£42,385
- Earnings Trigger: Â£10,000
Unsurprisingly, the LQL and UQL have remained in line with the National Insurance Lower Earnings Limit and Upper Earnings Limit. This reduces the administrative complexity and makes it simple for employers and employees to understand.
As part of the review, there were some calls to remove the LQL and UQL altogether. While this would obviously make the scheme simpler both to understand and administer, and would increase the contributions made by everyone, especially lower income workers, it was felt the increased financial burden on employers was unacceptable.