Article
Pension Auto-enrolment: What we know so far
The new Auto-enrolment pension scheme is finally set to be introduced late this year. The new scheme will have an impact on employers that do not operate a workplace pension scheme already.
Pension Auto-enrolment
Pension Auto-enrolment has been a discussed in Ireland for many years and it finally looks set to be introduced later this year. Here is what we know about the scheme so far ...
What is Auto-enrolment?
Auto-enrolment is a new pension savings scheme for certain employees who are not already paying into a pension. These employees will be automatically included in the scheme once the scheme commences.
A new Central Processing Authority will be set up to administer the Auto-enrolment scheme.
Under the scheme, the employee, the employer and Government will all pay a certain amount into the employee’s pension fund.
What does Auto-enrolment scheme mean for employers?
If you do not already have a workplace pension scheme established, all your employees that meet the scheme’s requirements will be enrolled into the auto-enrolment pension.
Employer Contributions
You will need to match the contributions made by employees. The amount an employee pays will be a set rate of their annual salary. Employers will match the contributions and the Government will contribute an additional amount. Employees cannot pay more or less than the set rate.
The employer and employee will pay 1.5% of the employee’s annual salary into the pension in the first year. This will increase to 6% by year 10.
The table below sets out the rates you, your employee and the Government will pay:
Year |
Employee Contribution Rate |
Employer Pays |
Government Pays |
| 1 to 3 | 1.5% | 1.5% | 0.5% |
| 4 to 6 | 3% | 3% | 1% |
| 7 to 9 | 4.5% | 4.5% | 1.5% |
| 10 and after | 6% | 6% | 2% |
Tax
Penalties
Who will be enrolled in the scheme?
- aged between 23 and 60
- are not currently part of a pension plan
- They earn €20,000 or more per year
When is Auto-enrolment being introduced in Ireland?
What should employers do now to get ready for Auto-enrolment?
Frequently Asked Questions
Auto-enrolment is a new pension savings scheme for certain employees who are not already paying into a workplace pension. These employees will be automatically enrolled once the scheme commences. Under the scheme, the employee, the employer and the government will all pay a certain amount into the employee’s pension fund.
The first enrolments under the pension auto-enrolment scheme will begin on 30th September 2025.
At a minimum, employer contributions will be at least 1.5% of the employee’s salary (capped at €80,000) to satisfy the minimum contribution requirements under the scheme. That figure will rise to 6% of salary over the next 10 years.
Yes, employer contributions under the pension auto-enrolment scheme will be tax deductible.
For the moment we advise employers to look at your payroll system and ensure that it will be able to take instruction for enrolment and budget for pension contributions they will need to make. Employers that do not have a pension scheme already in place in their business should start to research pension providers. Consideration should also be given to reviewing employment contracts and employee handbooks for future employees.
Date published 19 Jan 2024 | Last updated 22 Jan 2025
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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