The government has set the earnings threshold at which workers are auto-enrolled at £9,440 for 2013/14.
This comes after a consultation process in which the Department for Work and Pensions (DWP) asked for viewpoints on increasing the upper and lower earnings thresholds.
The move links the lower earnings trigger to the personal tax allowance for 2013/14 as the DWP proposed, which was due to be £9,205 but was increased by the Chancellor to £9,440 in the Autumn Statement.
In its original consultation, the DWP asked for opinions on linking the upper earnings limit to the top National Insurance contribution band, which is due to fall by £1,025 to £41,450 in the next tax year.
It debated the merits of maintaining simplicity by linking the two limits over the reduction to pension saving that cutting the limit might create.
In today's announcement the DWP said it will go ahead with the link to the upper earnings band despite the reduction to savings.
Workers will still be able to opt into workplace schemes provided they earn £5,668 per year or more, but will not qualify for auto-enrolment.
Hargreaves Lansdown head of pensions research Tom McPhail said: "Many employers will welcome this news. It will reduce their overall pensions bill, it keeps their administration simple and it takes more of their lower paid employees out of the system.
"Unfortunately it will mean that hundreds of thousands more workers will miss out on the opportunity to build a good retirement pot and because most of them are women it will exacerbate inequalities in the pension system.
"It is vital that all employers have in place a good communication programme to ensure that eligible and non-eligible jobholders are given every opportunity to make the most of the auto-enrolment reforms."
FCA checked files
Properties do not exist
Follows active fee cuts in June