Auto-Enrolment: What Employers Need to Know

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Auto-Enrolment: What Employers Need to Know

   Pension Auto Enrolment Financial Planning State Pension    04/11/2025  |  0
AE 2025

From January 2026, Ireland will introduce a State-run auto-enrolment pension system called My Future Fund, designed to ensure up to 800,000 employees without an existing pension start saving for retirement. This marks a major compliance change for employers as they will be compulsory required to make contributions into pensions for their employees.

 Who Is Affected?

  • Employees aged 23–60 earning €20,000+ per year who are not already in a qualifying pension scheme will be automatically enrolled.
  • Self-employed individuals and company directors paying PRSI Class S are excluded from auto-enrolment.

Employer Responsibilities

  1. Assess Workforce Eligibility
    Identify employees who meet the criteria. Employers with qualifying pension schemes may be exempt but must ensure compliance.
  2. Register on the Employer Portal
    Set up your profile on the MyFutureFund portal (opens December 2025) and establish a payment method.
  3. Update Payroll Systems
    Payroll must calculate and deduct contributions for both employees and employers and remit them to the scheme.
  4. Budget for Contributions
    Employer contributions start at 1.5% of gross pay (up to €80,000) and rise to 6% over 10 years. The State will add a top-up separately.
  5. Communicate with Employees
    Inform staff about enrolment, opt-out options (after 6 months), and re-enrolment every two years.
  6. Manage Opt-Outs and Compliance
    Employers must handle opt-outs and ensure contributions are paid on time. Failure to comply can result in fines and enforcement by the Workplace Relations Commission.

Key Timeline

  • November 2025: Employees who are not in a qualifying pension scheme by end of November will be captured by auto-enrolment.
  • December 2025: Employer portal opens for registration.
  • January 2026: Auto-enrolment begins; first contributions deducted.
  • July 2026: First opt-out window for employees.
  • 2027 onwards: Contribution rates gradually increase every 3 years until reaching 6% by year 10.

As some employers may consider commencing a workplace pension instead of auto-enrolment, we have uploaded a comparative summary on our website and you can view same by clicking HERE.

If you have any queries in relation to auto-enrolment and how it may impact your business, contact Jim on 087 2924131 and he can discuss your options with you.