The £10,000 pa earnings threshold at which employees must be assessed for Auto Enrolment was announced earlier this year. So far, so clear but only if employees have ‘annual salaries’ because if they do not, then it is worth noting the threshold for other payment frequencies:
Payment frequency Earnings threshold
While these figures deviate slightly from dividing £10,000 by 12, 26, or 52, they shouldn’t really cause employers too much difficulty. Where problems do arise, it’s due to fluctuations in pay connected with overtime, bonuses or seasonal work. This is especially important for some businesses in the run up to Christmas and New Year.
The message employers need to take from this is how important it is to do a full assessment on every employee and have a robust process in place to cover different payment periods and wage fluctuations.
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