The auto enrolment pension thresholds for 2024-25 will remain at its current levels, with the initial earnings figure of £10,000 unchanged.

The lower earnings limit for qualifying earnings will remain at £6,240, and the upper earnings limit will remain at £50,270, in line with the higher rate tax band at this time.

Automatic enrolment means it is an obligation for employers to enrol all workers aged 22 to pension age into a qualifying workplace pension, provided that they usually work in the UK and satisfy the age and earnings criteria.

The minimum employer contribution is 3% of earnings, with staff paying 5%. Earnings include commission, bonus and overtime payments and employees are entitled to opt out of schemes.

If you need to set up a pension scheme for your staff or you are new to running payroll for your time, please get in touch with the Kennedys Accounting Payroll Bureau, who will be pleased to advise you and send you details to ensure you remain compliant.