The Department for Work and Pensions (DWP) has set the earnings threshold for auto-enrolment at £9,440 for 2013/14.
In its response to the consultation, Automatic enrolment earnings thresholds review and revision 2013/14, the government has also proposed setting the lower limit of the qualifying earnings band at £5,668 and the upper limit of the qualifying earnings band at £41,450.
Many employers will welcome this news. It will reduce their overall pensions bill, it keeps their administration simple, and it takes more of their lower paid employees out of the system.
Unfortunately, it will mean that hundreds of thousands more workers will miss out on the opportunity to build a good retirement pot and, because most of them are women, it will exacerbate inequalities in the pension system.
It is vital that all employers have in place a good communication programme to ensure that eligible and non-eligible jobholders are given every opportunity to make the most of the auto-enrolment reforms.