Identify Assessable and Pensionable Earnings
As the employer, you must ensure that the earnings elements have the correct classifications. When you create earnings elements, verify that these subclassification rules apply to the specific type of earnings.
Subclassification | Description |
---|---|
Pensions Automatic Enrolment Assessable Earnings Regular | The process considers regular earnings with this default classification when assessing eligibility for automatic enrolment. |
Pensions Automatic Enrolment Assessable Earnings Irregular | The process considers irregular earnings with this default classification when assessing eligibility for automatic enrolment. |
Regular Earnings Subject to Pension | Also called as pensionable earnings, the automatic enrolment process uses these earnings to calculate the pension contribution amount. Pensionable earnings might exclude certain earnings, such as overtime or bonuses that are assessable. |
Irregular Earnings Subject to Pension | Irregular earnings don't by default feed the subject to pension balance. You can add this classification to your element if you want the irregular earnings to be pensionable. |
Note: The calculation of pension contributions in certain schemes requires
qualifying earnings. The legislation defines Qualifying Earnings Lower Threshold
and the Qualifying Earnings Automatic Enrolment Trigger. The application uses
these to assign employee classifications for Pensions Automatic Enrolment.