Auto-enrolment is on its way—and although its rollout has been pushed back to early 2026, Irish employers should already be preparing for its arrival. The new pension scheme represents a shift in how retirement savings will be managed across the country, aiming to boost participation through mandatory workplace contributions.

In her recent webinar, Employment Law Updates and Mastering Redundancy Best Practices, Yvonne Clarke went over everything you need to know.

What Is Auto-Enrolment?

Auto-enrolment is a new retirement savings initiative that will require employers in Ireland to automatically enrol eligible employees into a state-managed pension scheme. The system is designed to encourage long-term saving by making contributions mandatory from both employers and employees, with an additional top-up from the government via the "My Future" fund.

Who Will Be Affected?

Employees who:

• Are aged between 23 and 60, and
• Earn over €20,000 per year
  will be automatically enrolled in the scheme.

Unlike some existing occupational pensions that begin after a probationary period, contributions under auto-enrolment will start from day one of employment.

Contributions and Increases

Initial contribution rates will be modest but are scheduled to increase gradually over a 10-year period, impacting payroll and budgeting for employers. Contributions will be deducted from net pay, which differs from some traditional pension deductions.

The structure ensures:

• Employer contributions,
• Employee contributions, and
• Government top-ups.

This combination is designed to enhance retirement outcomes over time.

Employer Responsibilities

Employers will need to:

• Conduct a workforce and contractual review to identify who qualifies.
• Update employment contracts to reflect the changes, including any probation period adjustments.
• Ensure payroll systems can handle deductions and reporting requirements.
• Communicate clearly with employees to avoid confusion or disputes.
• Establish internal processes to meet enrolment deadlines and reporting obligations.

Even though the scheme will be centrally administered by an external body, there will still be significant internal administration, especially around payroll integration, employee queries, and compliance.

Special Considerations

Employers should pay particular attention to:

• Existing private or occupational pensions: Consider whether to continue, merge, or replace them with the state scheme.
• Financial planning: Especially for not-for-profits or organisations with slim margins, such as community crèches or childcare facilities.
• Employees on leave: Including those on maternity or sick leave, to ensure they are properly informed and managed.

Communication Is Critical

Clear communication will be essential. Employers must engage early with their teams—especially those who are not currently part of any pension scheme. Employees will need information about:

• How contributions work,
• How to opt in or out,
• How funds are managed, and
• What to expect on payslips.

Failing to properly inform staff could lead to employee relations issues or even referrals to the Workplace Relations Commission (WRC).

Looking Ahead: A Strategic Opportunity

Although auto-enrolment is mandatory, it can also serve as a competitive advantage. Employers may choose to offer more generous pension benefits than the statutory minimum, enhancing their attractiveness in a tight talent market. Integrating the scheme as part of a broader compensation and benefits package can support both recruitment and retention efforts.

Start preparing now:

• Audit existing pension schemes,
• Review your contracts and processes,
• Engage with your payroll and pension providers,
• Begin employee communication early, and
• Assign responsibility internally for compliance and administration.

Auto-enrolment is not just a compliance obligation—it’s an opportunity to support long-term financial wellbeing for your workforce and strengthen your organisational value proposition.

For the full webinar, please click here. Yvonne Clarke covers the following topics during this presentation:

• EU Pay Transparency Directive – Overview of the Directive and what this will mean for Irish Employers
• Updates on DE&I - General Scheme of the Equality (Miscellaneous Provisions) Bill 2024
• Employment (Contractual Retirement Ages) Bill 2025
• Updates to the Employment Permit System & The Employment Permit Act 2024
• Mastering Redundancy Best Practices – Overview of redundancy legislation and an over view of best practices when managing redundancies

The contents of this article are meant as a guide only and are not a substitute for professional advice. The authors accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article.