From 1 January 2026, Ireland will introduce its first Auto‑Enrolment workplace pension, officially known as My Future Fund. This scheme marks a major shift aimed at boosting retirement saving—especially among private‑sector workers without a pension plan.
When It Starts & What It Means
- Start date: 1 January 2026, delayed from an initial September 2025 launch.
- Target impact: Around 800,000 additional workers are set to become pension savers.
Who Is Affected?
Employees
- Automatic enrolment applies to individuals aged 23–60 who earn over €20,000/year and are not currently participating in a workplace pension.
- Contributions kick off at 1.5% of gross salary (employee + employer), rising in phases to 6% each by year 10.
- The State adds further top‑ups, starting at 0.5%, growing to 2% over time .
- A six-month minimum participation applies before employees can opt out over a two-month window, with mandatory re-enrolment every two years if eligible.
Employers
- Must automatically enrol all eligible employees and match contributions via payroll systems.
- My Future Fund will be managed by the new National Automated Enrolment Retirement Savings Authority (NAERSA), which will detect eligibility and manage opt‑outs/ins.
- Employers face financial, administrative, and compliance responsibilities, and non-compliance may result in regulatory action.
Phased Contribution Model
Timeline | Employee | Employer | State | Total (max 10 yrs) |
Years 1–3 (2026–28) | 1.5 % | 1.5 % | 0.5 % | 3.5 % |
Years 4–6 (2029–31) | 3 % | 3 % | 1 % | 7 % |
Years 7–9 (2032–34) | 4.5 % | 4.5 % | 1.5 % | 10.5 % |
Year 10+ (2035+) | 6 % | 6 % | 2 % | 14 % |
For a €30,000 salary in year one, contributions total about €1,050, gradually scaling up.
What Employers Need to Do to Prepare
- Audit existing pension schemes
- Employees part of an occupational pension or PRSA are exempt from auto‑enrolment.
- Ensure any workplace pension meets future “minimum standards” by year 7.
- Employees part of an occupational pension or PRSA are exempt from auto‑enrolment.
- Update payroll & systems
- Payroll must compute and remit contributions per schedule; software providers are rolling out updates ahead of January 2026.
- Engage with NAERSA via its online portal for payments and employee data.
- Payroll must compute and remit contributions per schedule; software providers are rolling out updates ahead of January 2026.
- Financial budgeting
- Incorporate rising employer contributions into medium‑term forecasts.
- Offset with tax-deductible treatment of contributions.
- Incorporate rising employer contributions into medium‑term forecasts.
- Communications plan
- Inform employees of eligibility criteria, enrolment dates, opt‑out rules, and benefits.
- Especially helpful for higher-rate taxpayers, some may prefer existing pension models for better tax relief.
- Inform employees of eligibility criteria, enrolment dates, opt‑out rules, and benefits.
- Get professional advice
- Consult pension specialists to compare your current arrangements with My Future Fund, and determine whether to optimise or integrate your pension offering.
- Consult pension specialists to compare your current arrangements with My Future Fund, and determine whether to optimise or integrate your pension offering.
Challenges & Opportunities
- Administrative burden: SMEs may require time to adapt payroll and communication systems .
- Tax implications: For 40% taxpayers, traditional schemes may remain more attractive due to superior relief.
- Long‑term gains: New savers get a substantial boost—for every €3 saved by the employee, total contributions reach €7.
Final Take
With 1 January 2026 fast approaching, employers must act now. Whether enhancing your current pension scheme or integrating with the state-run My Future Fund, early planning is critical.
That means:
- Auditing existing pension plans
- Updating payroll infrastructure
- Financial budgeting for rising contributions
- Running clear employee communications
- Securing expert pensions advice
Auto‑enrolment isn’t simply a compliance task—it’s a pivotal opportunity to secure your workforce’s future and align your organisation with Ireland’s evolving retirement policy. By preparing thoroughly now, employers can lead the way and unlock real benefits for their staff.
