What is Auto-enrolment?
The introduction of the long awaited Auto-enrolment retirement savings scheme, called My Future Fund, is will start from 1 January 2026. This new pension savings scheme is designed for employees who are not currently contributing to a pension. Under the scheme, the employee, employer, and Government all pay a certain amount into the employee’s pension fund.
The National Automatic Enrolment Retirement Savings Authority (NAERSA) will administer the Auto-enrolment scheme. NAERSA will act as the caretaker of your interests and savings. NAERSA will determine if you are eligible for Auto-enrolment using Revenue payroll data, and if you are eligible, it will enrol you.
If you’re an employer, you need to be ready for Auto-enrolment before 2026. Below are the key information you should be aware as an employer:
Who will be automatically enrolled?
earn more than €20,000 per year
are aged between 23 and 60
are not already in an occupational pension scheme going through payroll
What will I need to pay?
The rates will be phased in over the first 10 years of the scheme:
Contributions will start at 1.5% of gross pay for three years
In year four they will increase to 3%
In year seven they will increase to 4.5%
In year 10 they will increase to the maximum rate of 6%
What do I need to do under the Auto-enrolment scheme?
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Understand your obligations
As Auto-enrolment is a new employment right, you have responsibility to ensure that all eligible employees have access to the scheme.
You should be aware that:
- all employees meeting the eligibility criteria (see above), who do not already have pension coverage in respect of their employment with you will be auto-enrolled
- you will need to ensure that your payroll software, can take instruction for enrolment, calculate and pay employee and employer contributions to NAERSA
- you will be required to match members’ contributions up to an eventual maximum of 6% subject to an earnings threshold of €80,000
- if you fail to meet your Auto-enrolment obligations as an employer, you will be subject to penalties and potentially to prosecution
Alternatively, employers can set up a workplace pension scheme for their employees to offer more flexibility and control.
Communicate with your team
We advise you start conversations with your team on the upcoming changes. Explain what Auto-enrolment is, and how they'll be affected - or if you decide to go with a workplace pension scheme what it'll mean for them. Staff need to know how much will be deducted from thir salary, and if they don't qualify automatically, how can they opt in.
NAERSA will operate an online portal for employees, to manage employee opt-outs, opt-ins, suspension of contributions and re-enrolment. It will also operate an online portal for employers, to record and facilitate payment of contributions.
Employers will also be obliged to inform their employees when they are first enrolled.
Check your payroll systems
Once an employee has been identified as eligible for Auto-enrolment, NAERSA will send you an Automatic Enrolment Payroll Notification (AEPN) through payroll software. This will inform you of the contributions you and the employee need to pay as a percentage of gross earnings, so you can apply it on the employee's payslip.
Contributions must be paid at the same time as the employee is paid, and contribution information must be provided to NAERSA. You have several options to pay the contribution amounts to NAERSA. The easiest way will be a variable direct debit, which can be set up through the Auto-enrolment employer portal.
If you do not use payroll software, you will be facilitated on the employer portal.
If you have staff making private pension contributions, or you are interested in opening up a company pension scheme we recommend you reach out to a specialised provider.
