Government maintains auto-enrolment earnings trigger at £10,000

Wage growth results in extra £3bn in contributions

Jasmine Urquhart
clock • 2 min read

The government has confirmed the auto-enrolment (AE) earnings trigger has been maintained at £10,000 for 2024/25, following its annual review.

The Department for Work and Pensions (DWP) announced today (6 February) that the earnings trigger being maintained at this figure "represents real terms decrease in the value of the trigger" and strikes a balance between employer and employee affordability. The DWP will also maintain the lower earnings limit (LEL) at which employers and employees must pay in pension contributions, at £6,240, but will follow through on the consultation to remove the LEL in line with the 2017 AE review "at the earliest opportunity". The qualifying earnings band or upper earnings limit (UEL) which caps e...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

QROPS in a post-LTA world: Everything advisers need to know

QROPS in a post-LTA world: Everything advisers need to know

So, what next for QROPS?

Lisa Webster
clock 15 May 2025 • 3 min read
Pension providers reaction to the Mansion House Accord

Pension providers reaction to the Mansion House Accord

Signatories point to improved outcomes for members

Jonathan Stapleton
clock 14 May 2025 • 12 min read
'Please change your language': Unengaged savers turned off by pensions speak

'Please change your language': Unengaged savers turned off by pensions speak

‘They want to know – just not in the way you are selling it’

Jenna Brown
clock 13 May 2025 • 3 min read