A Complete Guide to Auto-Enrolment for Irish Employers
The Government’s My Future Fund pension scheme is launching in January 2026. Is your business ready? From 1 January 2026, auto-enrolment becomes a legal requirement in Ireland. This blog breaks down what you need to know: who it affects, how much it costs, what you need to do as an employer, and how to avoid costly penalties.
Why Auto-Enrolment is Coming
Over 800,000 employees in Ireland don’t currently have a workplace pension. Most will rely on the State Pension.
Auto-enrolment is designed to fix that. The Government’s goal is to:
- Get more people saving for retirement
- Make pension contributions automatic
- Reduce pressure on the State Pension
- Improve long-term financial wellbeing across the workforce
From 2026, employees who meet certain conditions will automatically be signed up for a retirement savings scheme unless they’re already in one.
Who Is Eligible?
To qualify for automatic enrolment, an employee must:
- Be aged between 23 and 60
- Earn €20,000+ per year across all jobs
- Not currently pay into a pension through payroll (i.e. shown on their payslip)
If someone is already in a company pension via payroll, they won’t be enrolled.
Important: For new entrants to the workplace, the €20,000 earnings threshold is assessed over the previous 13 weeks ‘ compensation. Once gross pay exceeds €5,000 in any 13-week block, the employee becomes eligible.
When Does It Start?
Auto-enrolment officially begins on 1 January 2026.
In early December 2025, the new government body — NAERSA (National Automatic Enrolment Retirement Savings Authority) — will open its employer registration portal. This is where employers register their business and connect payroll to the scheme.
Contribution Rates: What Will It Cost?
Contributions will ramp up gradually over 10 years. Employers and employees contribute equal amounts. The State also adds a top-up.
| Years in Scheme | Employee | Employer | State | Total |
|---|---|---|---|---|
| 2026–2028 | 1.5% | 1.5% | 0.5% | 3.5% |
| 2029–2031 | 3% | 3% | 1% | 7% |
| 2032–2034 | 4.5% | 4.5% | 1.5% | 10.5% |
| 2035+ | 6% | 6% | 2% | 14% |
✅ Based on gross pay before any deductions (including overtime, sick pay, BIK, bonuses etc.)
✅ Contributions apply only on the first €80,000 of annual earnings
What If You Already Have a Pension Scheme?
If your employees are already enrolled in a payroll-based pension, they will not be auto-enrolled.
However, it’s important to check:
- Are all eligible staff included in your current scheme?
- Is there a waiting period before new hires can join?
- Does your employment contract clearly make pension membership compulsory?
If not, those staff members may still be enrolled in the State-run auto-enrolment scheme by default when they sign up. You may need to review your employment contracts regarding pension plan membership to avoid running two pension schemes simultaneously.
Many employers will need to decide between:
- Keeping and promoting their existing pension scheme
- Allowing auto-enrolment to run in parallel
- Adjusting current policies and contracts to avoid duplication
Can Employees Opt Out?
Yes, but not immediately.
Employees must remain enrolled for the first 6 months. After that, they have a two-month opt-out window (months 7 and 8) and receive a refund. They will be automatically re-enrolled every 2 years if they are still eligible.
Employees cannot currently make Additional Voluntary Contributions (AVCs) under the AE scheme.
Employer Obligations: Your Legal Duties Under Auto-Enrolment
Auto-enrolment is not just a scheme — it’s a new employment right. From January 2026, Irish employers are legally required to support eligible staff in saving for retirement.
Here’s a clear breakdown of what you’ll need to do:
1. Register Your Business with NAERSA
Before the scheme launches, you must register your company on the NAERSA employer portal, expected to go live in December 2025.
To register, you’ll need:
- Your Revenue Online Service (ROS) certificate
- Company details and contact information
- To select a payment method for contributions (Direct Debit is recommended to avoid penalties)
Once registered, you’ll get access to digital files (called AEPNs) that link your payroll to the scheme.
2. Identify Eligible Employees
Use your payroll records to check which employees meet the following criteria:
- Aged 23 to 60
- Earn over €20,000 per year
- Not already contributing to a pension through payroll
If they qualify, you must enrol them. NAERSA will also provide data to help confirm eligibility.
3. Deduct and Match Contributions
Each pay cycle, you must:
- Deduct the employee’s contribution
- Add your matching employer contribution
- Submit both to NAERSA
This applies to all gross earnings up to €80,000 (including bonuses, overtime, BIK, commision etc.).
4. Manage Communication
You’re responsible for making sure employees understand the scheme. You must inform them about:
- How much they will contribute
- How the employer and State will match it
- When and how they can opt out
- What happens if they leave and rejoin later
- Re-enrolment every 2 years
5. Handle Opt-Outs and Suspensions
Employees can opt out during months 7 and 8 of their enrolment. You must stop their contributions if they opt out, and refund any contributions they made during the first 6 months.
They’ll be automatically re-enrolled every 2 years if still eligible. You must process these re-enrolments accordingly.
6. Maintain Records and Stay Compliant
You’ll need to keep clear records of:
- Enrolled employees
- Contribution amounts and payments
- Opt-out requests and re-enrolment dates
Missing payments or failing to enrol staff correctly could result in fines or enforcement actions.
7. Review Your Existing Pension Scheme
If you already offer a pension, review whether:
- All staff are covered
- It includes regular payroll contributions
- Your onboarding process makes pension participation compulsory
If your scheme doesn’t meet these requirements, you may still need to auto-enrol certain employees.
Auto-Enrolment vs. Company Pensions: Key Differences
| Feature | Auto-Enrolment | Company Pension |
|---|---|---|
| Fund Options | Limited | Broad range |
| AVCs Allowed | ❌ | ✅ |
| Contribution Flexibility | ❌ Fixed | ✅ Flexible |
| Advice & Support | Unknown | Financial advisor support |
| Tax Relief | Tax credit | Tax relief |
| Access to Pension | Age 66 | From 50 (some schemes) |
| Charges | Low but fixed | Varies by provider |
Frequently Asked Questions (Auto-Enrolment Ireland 2026)
Q: Does this replace the State Pension?
A: No. It supplements it. Employees still qualify for the full State Pension when eligible.
Q: Do part-time staff qualify?
A: Yes, as long as they earn over €20,000 per year and are aged between 23 and 60. A staff member can also opt in if they are earning under €20,000 but this is not required.
Q: What if my employee earns over €80,000?
A: Contributions only apply to earnings up to €80,000. Income above that is excluded.
Q: Can I keep using my company pension instead?
A: Yes, if it’s a qualifying pension scheme and includes regular payroll contributions for eligible staff.
Q: Is auto-enrolment optional?
A: No. It’s a legal requirement for eligible employees unless they already have a pension through payroll.
Q: Can employees make extra contributions?
A: No. The AE scheme does not currently allow Additional Voluntary Contributions (AVCs).
Q: Can employees opt out?
A: Yes, but only after 6 months. They can opt out during months 7 and 8 and request a refund. Automatic re-enrolment happens every 2 years.
Q: What’s the age limit for auto-enrolment?
A: Employees between 23 and 60 years old are automatically enrolled if eligible.
Q: How is the €20,000 income threshold assessed?
A: Your annual salary or if it is a new entrant to the workforce; over a 13-week period. If gross pay reaches €5,000 in the previous 13-week block, the employee qualifies.
Q: Who manages the scheme?
A: NAERSA — the National Automatic Enrolment Retirement Savings Authority.
Q: Will I have to choose a pension provider?
A: No. The State will select and manage the providers centrally through the My Future Fund.
Q: What if I miss a payment?
A: Late or missed payments could result in penalties. That’s why it’s important to automate contributions. We recommend signing up to the direct debit option.
Q: Will there be an employee portal?
A: Yes. Employees will be able to manage their contributions and view balances online, similar to MyWelfare.
Q: Is commission, overtime or sick pay included in the contribution?
A: Yes. Contributions are based on total gross pay, including bonuses, benefits in kind (BIK), and statutory payments.
Q: Will this apply to directors or business owners?
A: Not unless they are paid as employees through payroll and meet the age and earnings criteria.
Q: Can employers use a payroll provider to manage it all?
A: Yes. Providers like ORC can handle registration, contributions, opt-outs, and compliance for you.
Final Thoughts: Get Auto-Enrolment Right with ORC
Auto-enrolment is a legal requirement from January 2026 — but it doesn’t have to be a headache.
ORC can take the pressure off by managing everything through our fully outsourced payroll service, including:
- Tracking who’s eligible
- Calculating and submitting contributions
- Syncing with NAERSA
- Handling opt-outs and re-enrolments
- Communicating with your staff
We’ll keep you compliant, save you time and protect your business from penalties — while giving your employees the future they deserve. Contact us today to see how we can help.