As Ireland’s long-awaited Auto-enrolment system moves closer to its rollout in 2025, employers across the country are preparing for one of the most significant changes to workplace pensions in decades. Designed to boost retirement savings for employees who are not already in a pension scheme, Auto-enrolment will require businesses to meet new compliance, contribution, and administrative obligations.
To help employers navigate this transition, Susan Lennon, Director at ABAS, has shared the top 15 questions employers are asking right now: from contribution rates and eligibility rules to timelines and practical steps for implementation.
If you’re wondering what Auto-enrolment means for your business, this FAQ is your essential guide.
Eligibility & who is included
Who is considered an employee for the purposes of Auto-enrolment?
An employee for the purposes of auto-enrolment is the same as an employee for tax and PRSI purposes. It is a worker who works for and is paid by an employer and is not self-employed.
Will company directors be enrolled?
This depends on the PRSI class that you are contributing as a company director. If you pay PRSI as an employee and meet the eligibility criteria, then you will enrolled. But if you are registered as self-employed then you will not be eligible.
Will apprentices be enrolled?
Apprentices will be treated the same as any other employee, and if they meet the eligibility criteria they will be enrolled.
Will new employees be auto-enrolled straight away?
There are no waiting periods for the auto-enrolment scheme. New employees who have an earnings record with Revenue where they have earned €20,000 or more in a year will be automatically enrolled. For new employees who have no previous earnings record or a gap between their previous and new employment, enrolment may take up to 13 weeks while it is established if they will likely meet the earnings threshold.
How will the employee’s salary be assessed for eligibility?
Any income reported in the gross pay field on payroll will be assessed. For some employments, it will be clear on ‘Day 1’ that an employee meets the minimum earnings criterion. For others, it might take up to 13 weeks for NAERSA to apply a ‘look back’ at an employee’s earnings in a pay reference period.
What is included in the definition of salary or earnings for Auto-enrolment?
An employee’s gross earnings will be assessed for the income threshold and for the calculation of contributions. This means that anything that’s included in the gross pay field on payroll will be assessable.
If you’re an employer, you need to be ready for Auto-Enrolment well before 2026. This is one of the biggest changes to workplace pensions in decades, and preparation is key. We’ve been working closely with our clients to guide them through the process, and these FAQs reflect the most pressing questions we’re hearing every day.
Employer responsibilities & existing schemes
Do family or small companies have to implement Auto-enrolment?
All companies with employees in Ireland, regardless of size or structure, will have to facilitate the auto-enrolment scheme for employees who meet the eligibility criteria and for those who wish to opt in.
Employers who prevent their employees from joining the scheme, or who force their employees to opt out or suspend contributions, may be prosecuted and will be subject to fines and penalties. Withheld or underpaid contributions will attract interest payments.
Do I have to enrol my employees on the employer portal?
No an employer is not responsible for the enrolment of individual employees however they will need to register as an employer on the employer portal through the MyFutureFund website between 1 December and 31 December 2025.
Will I have to tell my employees when they’ve been enrolled?
Under the auto-enrolment legislation, employers are obliged to inform their employees when they have first been enrolled, and to inform them of the date of enrolment. To make this as easy as possible for employers, welcome letters for employees, containing their enrolment date will be available on the employer’s secure mailbox on the employer portal. Employers will be able to download these and send them to their employees to notify them of their enrolment.
The welcome letters have been designed to comply with the legislation. By using these letters, employers can be sure that they are meeting their legal obligations to inform employees of their enrolment.
From 1 January, employees will also receive a detailed welcome letter to their secure mailbox. However, this letter will not negate the obligation on employers to inform their employees of their enrolment.
What if employers already have a pension scheme in place for their employees?
Any existing pension scheme will run in parallel to auto-enrolment. Any employees that have a record via payroll of either employee contributions and/or employer contributions will not be enrolled in the scheme.
Will employers still have to provide access to a PRSA?
The Automatic Enrolment Retirement Savings System Act 2024 Act does not affect existing legislation, so you will still have an obligation to offer access to a PRSA for employees who wish to avail of it.
Do the contribution rates for my existing scheme have to match the contribution rates under Auto-enrolment?
No. The set contribution rates only apply to the auto-enrolment scheme. However, by the end of year six of the operation of the auto-enrolment scheme, at the latest, standards for the exemption of existing pension schemes will be developed with the assistance of the Pensions Authority.
Administration & practicalities
How will contributions be paid?
Employers will pay employee and employer contributions directly to NAERSA. It is anticipated that different methods will be available, including variable direct debit. Employers will be able to set this up on the employer portal. More information will be made available closer to launch date.
Will there be additional employer returns to be made by employers or will all the pension deduction information be processed through existing Revenue PAYE returns?
As an employer you will need to make a separate return through payroll directly to the National Automatic Enrolment Retirement Savings Authority. Information on how this process will work will be made available to employers closer to go-live.
The calculation of contributions will be made through your existing payroll software.
Do we need a broker to manage auto-enrolment for us?
No, auto-enrolment will be administered by a central body, the National Automatic Enrolment Retirement Savings Authority, so there is no need to engage the services of a broker.
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