When does it start?
The roll‑out has been shifted several times. Originally planned for 30 September 2025, it has now been rescheduled to begin on 1 January 2026, aligning with the tax year to give employers and payroll providers extra time to prepare
What's the goal?
This is a major boost for retirement savings in Ireland—bringing roughly 800,000 employees into a structured pension system for the first time
Who's covered?
Automatic enrolment applies to employees:
- Aged 23 to 60
- Earning €20,000 or more per year
- Not already in an occupational pension plan, PRSA, or similar scheme
Those outside the criteria can choose to join voluntarily How do contributions work?
It’s a three‑way system:
- Employee contributes
- Employer matches that
- The State adds a top‑up
Phase-in schedule over 10 years (based on gross salary, capped at €80,000):
|
Years |
Employee |
Employer |
State |
|
1–3 |
1.5% |
1.5% |
0.5% |
|
4–6 |
3% |
3% |
1% |
|
7–9 |
4.5% |
4.5% |
1.5% |
|
10+ |
6% |
6% |
2% |
For every €3 you save, the employer adds €3 and the State adds about €1—making your money grow faster
Opt-out and re-enrolment rules:
- After being enrolled for six months, employees can opt out (and get a refund of their own contributions; employer and State contributions stay in the fund)
- Opt‑outs trigger automatic re‑enrolment every two years, with another opt‑out window
Portability & management:
- The scheme follows the employee, even when changing jobs—a “pot‑follows‑member” model
- Administered by NAERSA (National Automatic Enrolment Retirement Savings Authority), which uses payroll data to determine eligibility, collect contributions, manage investments, and run the online portal for both employers and employees
Why it matters:
- Boosts retirement savings for those without existing pension plans
- Shared contributions make saving easier and more impactful
- Simple and inclusive design, with flexibility to opt out
- Employer encouragement: Employers can continue offering their own schemes instead, but must ensure they meet minimum standards
Caveats to keep in mind:
- No tax relief on employee contributions, unlike traditional pensions—though the State top‑up offsets this somewhat
- Higher‑rate taxpayers might find this less attractive compared to traditional schemes
- Employers and small organisations may face administrative and cost challenges, especially if they’re just getting set up
