Auto-Enrolment in Ireland: A Guide for Employers

Ireland’s new auto-enrolment pension system is set to transform retirement savings for employees and introduce significant new responsibilities for employers. Here’s what business owners need to know to prepare for this change ahead of it’s introduction on 1st January 2026.

What Is Auto-Enrolment?

Auto-enrolment is a government-led initiative designed to ensure that employees not already in a workplace pension scheme are automatically enrolled in a retirement savings plan. The scheme, known as “My Future Fund,” is overseen by the National Automatic Enrolment Retirement Savings Authority (NAERSA).

Who Is Affected?

Employees will be automatically enrolled if they:

• Are aged between 23 and 60
• Earn €20,000 or more per year
• Are not already part of a qualifying pension scheme Employees outside these criteria can opt in voluntarily. Self-employed individuals are currently excluded from the scheme.

Key Employer Responsibilities

1. Assess Workforce Eligibility

• Determine which employees meet the auto-enrolment criteria.
• NAERSA will notify employers about which staff must be enrolled.

2. Update Payroll Systems

• Ensure payroll can calculate and process contributions for both employees and employers.
• Contributions must be deducted and remitted to NAERSA at the same time as payroll.

3. Communicate with Employees

• Inform staff about their enrolment, how the scheme works, and their right to opt out after six months.

4. Manage Opt-Outs and Re-Enrolments

• Employees can opt out within a specified window (six to eight months after enrolment) but will be re-enrolled every two years unless they opt out again.

  5. Budget for Contributions

• Employer contributions start at 1.5% of gross pay, rising to 6% over ten years.
• State top-ups will also be added to employee pension pots.

6. Ensure Compliance

• Employers who fail to meet obligations face fines, interest on unpaid contributions, and possible prosecution.
• The Workplace Relations Commission will handle disputes and enforcement.

Exemptions and Existing Pension Schemes

• Employers with a qualifying occupational pension scheme that covers all eligible employees and meets minimum contribution standards are exempt from auto-enrolment requirements.
• Non-qualifying schemes must be updated or replaced to comply.

Benefits for Employers

• No need to set up or administer a company pension scheme if using auto-enrolment.
• Employer contributions are deductible for corporation tax purposes.
• Enhances competitiveness and attractiveness as an employer by providing a valuable benefit.

Conclusion

Auto-enrolment represents a major shift in Irish workplace pensions, placing new duties on employers but also offering benefits such as simplified pension administration and enhanced employee welfare. Early preparation and clear communication with staff will be key to a smooth transition.

For further guidance, get in touch with our team..