Auto Enrolment in Ireland: What Employers Without a Pension Scheme Need to Know

01/08/2025

From January 2026, a major change to workplace pensions will take effect in Ireland.

The Government's new Auto Enrolment (AE) Retirement Savings Scheme will require employers who do not currently provide a staff pension to enrol eligible employees into a national scheme and contribute to their retirement savings.

If your business doesn't already have a qualifying pension plan, this article outlines what you need to know — and do — to stay compliant

What Is Auto Enrolment

Auto Enrolment is designed to improve retirement outcomes for workers who are not already in a pension scheme. It introduces a mandatory structure where employees are automatically enrolled in a State-facilitated pension plan, with contributions coming from the employee, the employer, and the Government.

Employees will be eligible for Auto Enrolment if they are aged 23 or over, earn more than €20,000 annually (across all employment), and are not already part of a workplace pension scheme.

Enrolment is automatic — hence the name — and employees may only opt out after six months of participation. If they do, they will be automatically re-enrolled after two years unless they join another pension scheme in the meantime.

What Does This Mean for Employers?

If your business has no pension scheme in place, you will be required to:

  • Register with the new Central Processing Authority (CPA), which will administer the scheme.
  • Enrol all eligible employees.
  • Match employee contributions, starting at 1.5% of gross earnings in 2025.
  • Adjust payroll systems to handle deductions and reporting.
  • Communicate clearly with employees about their rights and the value of pension contributions.
  • The employer contribution will increase gradually over time, reaching 6% by 2034.
  • The State will also contribute a top-up on behalf of employees, making participation even more attractive to workers.

What If You Already Offer a Pension?

If your company already provides a workplace pension scheme, you may be exempt from AE — but only if your current scheme meets the minimum requirements under the new rules. This includes being voluntary, tax-registered, and aligned with AE contribution levels.

It's important to review your scheme now and seek advice if you're unsure whether it qualifies. Otherwise, you risk having to run both your existing scheme and the AE scheme side by side, leading to unnecessary costs and confusion.

How Should Employers Prepare?

Even though AE doesn't launch until January 2026, employers should begin planning immediately. 

Key steps include:

1. Review your current pension arrangements, if any, and assess whether they meet the new AE criteria.

2. Forecast the financial impact of employer contributions over the next decade.

3. Ensure payroll software and systems are updated to manage AE deductions and CPA reporting.

4. Train HR or payroll teams to handle employee queries and communicate the scheme benefits clearly.

5. Engage with financial advisers to guide you through compliance, exemptions, and cost control strategies.

Why It Matters

This is one of the most significant changes to workplace benefits in recent Irish history. For employees, it offers a long-overdue path to retirement savings. Foremployers, particularly SMEs with no current pension offering, it introduces a new layer of financial and administrative responsibility.

Proactive planning now will reduce disruption later. Waiting until the deadline could result in penalties, missed deadlines, or payroll headaches.

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