Changing AE earning trigger will hurt target market - TUC

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More than half a million low-paid workers could lose out on thousands of pounds in employer pension contributions if the government increases the auto-enrolment earning trigger, unions have claimed.

The TUC said 80% of those affected would be low earning women. At present employers and employees will pay contributions on earnings above £5,564, but only if staff earn above £8,105. However, the government is currently consulting on raising the lower earnings limit and the earnings trigger to £5,720 and £9,205 respectively. The TUC said increasing the threshold would mean thousands of low paid workers miss out unless they voluntarily sign up. TUC analysis of official earnings data shows that around 3.5 million workers earn less than £8,106 a year, and would therefore not be autom...

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