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.

By default, all new elements you create for both Regular and Irregular Earnings classifications have these subclassifications:

Element Classifications and Subclassifications for Regular and Irregular 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.