Auto-Enrolment Pension Ireland: What Employers Must Do (My Future Fund)

Last updated October 2026. General information only, not legal advice.

Since 1 January 2026, Irish employers have been deducting and matching pension contributions for eligible staff under the My Future Fund auto-enrolment scheme, whether or not they ever ran a pension before. This guide explains who is enrolled, what it costs, what employers must do on each payroll run, and what happens if the rules are not followed. If you need to document your payroll process and staff communications, the Auto-Enrolment Pension Compliance Pack is a self-complete template set built for this.

What is auto-enrolment (My Future Fund)?

Auto-enrolment is a State-run retirement savings system created by the Automatic Enrolment Retirement Savings System Act 2024. It is branded My Future Fund and operated by the National Automatic Enrolment Retirement Savings Authority (NAERSA), based in Letterkenny. The scheme was originally due to start on 30 September 2025 but was rescheduled to 1 January 2026 to line up with the tax year and give payroll providers time to prepare. Contributions have been collected from the first pay date on or after 1 January 2026.

For employers there is nothing to set up in the traditional sense: no provider to choose, no trustees, no scheme of your own. NAERSA decides who is eligible, tells you through payroll, collects the money and invests it. Your job is to register, apply the notifications, deduct and match contributions, and pay on time.

Who is automatically enrolled?

An employee is automatically enrolled where they are aged 23 or over and under 60, earn €20,000 or more a year across all their employments, and are not already paying into an occupational pension scheme, PRSA, RAC or PEPP through payroll in that employment. Eligibility is assessed by NAERSA from Revenue payroll data, so employers are not expected to work it out themselves.

A few practical points follow from this:

• The exemption works per employment. Someone with a pension in one job can still be enrolled in a second job that has no payroll pension.
• Once enrolled, an employee stays enrolled even if their pay later drops below €20,000.
• Workers aged 18 to 66 who fall outside the age or earnings tests can opt in voluntarily. The self-employed are not covered.
• New starters can take up to 13 weeks to be assessed, and contributions are not backdated.

Contribution rates and the phasing schedule

Contributions are a fixed percentage of gross pay, with the employee, the employer and the State all contributing. The rates step up over ten years and employers cannot pay more or less than the fixed rate through the scheme.

No contributions are taken on gross pay above €80,000 in a year. Once an employee passes the cap, contributions stop after the pay period in which it is breached. The State top-up works out at €1 for every €3 the employee pays, which replaces income tax relief rather than adding to it.

Participants pay an administration charge of 55 cent a week on active accounts and a small investment charge; employers pay no administration fee. Employees choose a high, moderate or low risk fund, or are placed in a default fund.

What employers must do on each payroll run

Employers register on the My Future Fund employer portal using their ROS digital certificate, complete a profile and set up a payment method (variable direct debit or card).

Each pay run then follows the same cycle:

1. Download or receive the Automatic Enrolment Payroll Notification (AEPN), which tells you which employees to enrol and at what rate.
2. Deduct the employee contribution and add the matching employer contribution.
3. Submit the contribution information to NAERSA. Information is due no later than pay day, and the employer handbook treats submissions after 18:30 on pay date as late.
4. Pay the money across. The prescribed time for payment, for the purposes of the offence provisions, is midnight on the fifth working day after pay day.

Employers without payroll software can submit manually through the portal. Participant contributions rank ahead of other deductions from pay, apart from tax, PRSI and USC.

Telling staff

An employer must notify an employee in writing of their enrolment or re-enrolment, and the date it takes effect, within 14 days of receiving NAERSA’s notice. Template welcome letters are provided in the portal mailbox. This is one of the simplest compliance steps and one of the easiest to overlook when payroll is outsourced.

Opting out, suspending and re-enrolment

Employees cannot opt out straight away. The opt-out window opens after six months and closes at eight months from the enrolment notice, and the same window reopens after each rate step-up and after any re-enrolment. On opting out, the employee’s own contributions are refunded tax-free, while the employer and State contributions stay invested in the employee’s account. Employees can also suspend contributions at any time after the first six months, which stops all contributions including the employer’s, with a minimum of 12 months before restarting. Anyone who opts out or suspends is automatically re-enrolled after two years if still eligible.

The first opt-out window ran from 1 July to 31 August 2026. According to the Department of Social Protection, around 29,000 people opted out, under 4% of participants, and by September 2026 more than 835,000 people were enrolled.

What if you already run a pension scheme?

Employees who contribute to an occupational scheme or PRSA through payroll are exempt from auto-enrolment for that employment. From 1 January 2026, regulations set minimum standards an existing scheme must meet for this purpose. For a defined contribution scheme or PRSA, the employer must contribute at least 1.5% of gross pay (or €1,200 a year if lower) with combined contributions of at least 3.5% (or €2,800 a year). A defined benefit scheme must provide an accrual of long-service benefit. Employers are not obliged to put staff into their own scheme instead of auto-enrolment, but must still give access to a PRSA where an employee asks for it.

Tax treatment

Under the Finance Act 2025, employee contributions get no income tax relief, because the State top-up takes its place, and the top-up itself is exempt from income tax and USC. Employer contributions are deductible for corporation tax in the year paid, are not a benefit-in-kind and are exempt from USC. Growth in the fund is tax-free and at retirement a 25% lump sum can be taken tax-free within the €200,000 lifetime limit, with the balance taxed under Schedule E. Neither Budget 2026 nor Budget 2027 changed the scheme’s rules; Budget 2026 allocated €154 million for State contributions.

Penalties for getting it wrong

Failing to pay contributions within the prescribed time, deducting contributions and not remitting them, or making false statements to avoid liability are offences under section 131 of the 2024 Act. Hindering an employee’s participation (section 128) is also an offence, and employees who are penalised for taking part have a complaint route to the Workplace Relations Commission. On summary conviction the penalty for these offences is a class A fine and/or up to six months’ imprisonment, and a court can order payment of arrears for up to three prior years with interest.

NAERSA can also issue fixed payment notices: €2,500 for hindering participation or evasion, and €250 to €5,000 for late payment depending on the arrears. The Minister has said NAERSA will engage with non-compliant employers first and use formal powers only where no effort is made to comply. One early official warning is worth noting: some employers wrongly told staff they had to join an employer scheme by the end of 2026. There is no such requirement.

What a template can and cannot do

The Auto-Enrolment Pension Compliance Pack gives you a written payroll procedure, staff notification letters and a record-keeping checklist that you complete yourself. It does not register you with NAERSA, run your payroll or assess eligibility, and it is not a pension scheme. If you are deciding whether to keep an existing occupational scheme or dealing with a compliance notice, speak to a solicitor or pension adviser. You can find one through the Law Society’s Find a Solicitor service. You may also find our guides to employment contracts in Ireland and what to include in an employee handbook useful, and the full range of employment law templates is here.

Frequently asked questions

When did auto enrolment start in Ireland?

Contributions started from the first pay date on or after 1 January 2026, after the original 30 September 2025 start was rescheduled. Employer portal registration opened from 30 September 2025.

What are the auto enrolment contribution rates?

For 2026 to 2028 the employee pays 1.5% of gross pay, the employer matches 1.5% and the State adds 0.5%. Rates rise in three-year steps to 6%, 6% and 2% from 2035. No contributions are taken on pay above €80,000 a year.

Can an employee opt out of auto enrolment?

Yes, but only in the window between six and eight months after enrolment, and again after each rate increase or re-enrolment. Employee contributions are refunded; employer and State contributions stay in the account. Anyone who opts out is re-enrolled after two years if still eligible.

Do employers have to choose a pension provider for auto enrolment?

No. NAERSA collects contributions, appoints the investment managers and administers accounts. Employers register on the portal, apply payroll notifications, deduct and match contributions and pay on time.

Is auto enrolment mandatory for employers in Ireland?

Yes. Where NAERSA notifies you that an employee is enrolled, you must deduct, match and remit contributions. Failing to pay within the prescribed time or deducting without remitting is an offence, and NAERSA can issue fixed payment notices of up to €5,000.

Sources: gov.ie – Auto-enrolment for employers · Automatic Enrolment Retirement Savings System Act 2024 · S.I. 637/2025 · Citizens Information – Auto-enrolment · Revenue – Pensions manual, chapter 32

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