(Effective 1 January 2026)
What is it?
Auto-enrolment is a new State-run workplace pension
A scheme for employees not already in a pension.
Starting 1 January 2026, eligible employees will be
automatically enrolled into the My Future Fund, unless
Their employer provides a qualifying pension.
The scheme is managed by the National Automatic
Enrolment Retirement Savings Authority (NAERSA).
Who is enrolled?
- Employees aged 23–60
- Earning over €20,000/year
- Not already in a pension through payroll
Employees under 23, over 60, or earning less can opt in
voluntarily.
| Phase | Employer | State Top-Up | Total |
|---|---|---|---|
| Years 1–3 | 1.5% | 0.5% | 3.5% |
| Years 4–6 | 3% | 1% | 7% |
| Years 7–9 | 4.5% | 1.5% | 10.5% |
| Year 10+ | 6% | 2% | 14% |
- Based on gross earnings up to €80,000
- Employee contributions are mandatory unless they
opt out (see below) - Employer contributions are tax-deductible
- The State adds a 33% top-up to the employee’s
contribution (replacing tax relief)
Opt-out and re-enrolment
- Employees may opt out between months 6 and 8
after being enrolled (and being refunded their
contributions) - Employees are automatically re-enrolled every 2
years if still eligible - Contributions can be suspended after 6 months for
up to 2 years
Why employers should consider an alternative
pension
If you already offer a qualifying pension (e.g.
Occupational Pension Scheme or Employer PRSA), your
staff will be exempt from auto-enrolment.
Benefits of setting up your own pension:
- More flexibility in contribution levels and vesting
- Potentially greater tax efficiency for higher earners
- You control investment options and provider
- May be more attractive for staff retention and
recruitment
What employers must do
By 1 January 2026:
- Assess your workforce for eligibility
- Decide whether to adopt the State scheme or offer
your own - Update payroll systems to handle auto-enrolment
and deductions - Budget for phased employer contributions
- Communicate clearly with employees
Final word
Auto-enrolment is designed to ensure all workers have
access to retirement savings. Employers not offering a
pension will be legally required to support this new
system.
But you can take control now by implementing your
own qualifying scheme — one that offers more value
for you and your team.
