As Ireland prepares to introduce its Automatic Enrolment Retirement Savings Scheme in early 2026, employers face a significant shift in how they manage retirement savings for their workforce. The scheme will automatically include employees aged 23 to 60 who earn more than €20,000 annually and are not already enrolled in a pension plan.
In a recent webinar with Yvonne Clarke, Patrick Keegan and Mary Byrne, Getting Ready for Auto-Enrolment Retirement Saving Scheme, Yvonne outlined the critical HR, compliance, and communication steps that organisations must take to prepare for this nationwide rollout.
1. Compliance, Legal, and Administrative Readiness
Clarke began by underscoring that HR acts as the gatekeeper of compliance and procedures in the workplace. Employers will be responsible for ensuring their organisations meet the requirements of the new scheme — and failure to do so could carry serious penalties.
Non-compliance — such as failing to enrol eligible employees or remit contributions — could result in fixed penalties of up to €5,000 per offence, with interest applied. More serious offences, including falsification or obstruction, could lead to fines up to €50,000 or imprisonment of up to three years.
While these figures serve as a deterrent, Yvonne framed them as a “reality check” rather than a scare tactic: auto-enrolment will be monitored closely by the National Automatic Enrolment Retirement Savings Authority (NAERSA), and employers must be ready.
2. Reviewing Contracts and Pension Policies
HR teams must review and update employment contracts to ensure they align with the new requirements. If an organisation is transitioning from an existing occupational pension scheme, new contract clauses must be inserted from day one of employment. Yvonne emphasised the importance of consulting pension providers immediately to clarify how existing schemes integrate with auto-enrolment.
Employers should also audit their pension coverage to identify any inconsistencies across employee groups — for example, why certain staff levels participate while others do not. This audit will help remove anomalies and support equitable implementation.
3. Preparing HR and Payroll Systems
Although NAERSA will manage much of the technical administration, internal teams will still face substantial administrative responsibilities. HR systems must be capable of tracking staff opt-ins and opt-outs, as well as managing complex cases such as maternity leave, sick leave, and career breaks.
Employers will also need to register with NAERSA’s employer portal, ensuring systems are ready for seamless data exchange once the scheme launches.
4. Employee Engagement and Communication
A recurring message from Yvonne was clear: “Always Be Communicating.”
Auto-enrolment represents a major change that will affect employees’ net pay, so proactive communication is essential. Clarke warned against waiting until “the end of December” to inform staff that contributions would begin in January — this would only lead to confusion, dissatisfaction, and mistrust.
Employers should develop a clear communication strategy — covering who, what, when, why, and how — and start education campaigns now. Pension providers can play a key role in explaining the benefits and mechanics of auto-enrolment.
Clarke also encouraged employers to consult with current employees well ahead of time to avoid grievances when changes take effect. For new hires, auto-enrolment information should be embedded in onboarding and induction materials.
5. Talent Attraction, Retention, and Employer Branding
Ireland’s labour market remains tight, and Clarke highlighted that competitive pension offerings can serve as a differentiator in attracting and retaining talent.
Auto-enrolment should be seen as part of the total rewards package, complementing compensation and benefits strategies. Employers might even consider enhanced contribution schemes for certain roles to strengthen employer branding.
As Yvonne noted, “This is about preparing for the future.” With the average industrial wage around €50,000, and many workers expected to be renting well into retirement, employer-supported pension schemes are becoming essential to long-term financial security.
6. Monitoring, Evaluation, and Ongoing Compliance
Yvonne reminded HR leaders that auto-enrolment compliance is not a one-time event but an ongoing responsibility. Organisations will need robust monitoring systems to ensure timely enrolment and contributions, supported by regular audits and close collaboration with pension providers.
Periodic evaluations will help maintain accuracy and identify gaps, especially as workforce changes occur. “It’s another layer on an already busy workload,” Yvonne acknowledged, “but it’s vitally important to get it right.”
7. Integrating Auto-Enrolment into Broader HR Strategy
Beyond compliance, Yvonne advised employers to embed auto-enrolment within their broader HR strategy:
- Data Protection: Ensure all pension-related data complies with GDPR requirements.
- Workforce Planning: Align pension strategies with demographic trends and workforce dynamics.
- Policy Reviews: Update documents covering maternity leave, parental leave, sick leave, probation, and retirement to reflect the new pension processes.
- Employee Consultation: Maintain open dialogue, especially with existing staff whose terms and conditions will change.
These measures ensure that auto-enrolment is not merely a compliance exercise, but a key component of organisational well-being and employee experience.
Yvonne's message to HR leaders was unequivocal: get ahead of the game. Auto-enrolment is coming, and preparation must begin now. From revising contracts to educating employees, the steps taken in 2025 will determine whether businesses enter 2026 with confidence or chaos.
As she summarised, “Employers must ensure that employees are adequately informed of all changes to policies and conditions — because consultation and communication are the foundation of successful implementation.”
FAQs
1. What is Ireland’s Auto-Enrolment Retirement Savings Scheme?
The Auto-Enrolment Retirement Savings Scheme, launching in Q1 2026, aims to increase private pension coverage across Ireland. It will automatically enrol employees aged 23–60, earning €20,000 or more annually, who are not already part of a workplace pension scheme.
2. Who will be affected by the scheme?
All employers in Ireland must participate. Any eligible employee not already in a pension plan will be automatically enrolled. Employers must ensure that new and existing staff are correctly registered, and contributions are deducted and remitted on time.
3. What are the penalties for non-compliance?
Failure to comply — for example, by not enrolling eligible staff or missing contributions — can result in:
- Fixed penalties up to €5,000 per offence
- Interest charges on unpaid contributions
- Fines up to €50,000 and/or imprisonment up to three years for serious offences, such as falsification or deliberate obstruction
Compliance will be monitored by the National Automatic Enrolment Retirement Savings Authority (NAERSA).
4. What should HR teams do first?
- Review and update employment contracts, particularly pension clauses.
- Consult pension providers to ensure clarity on existing schemes.
- Audit current pension participation to identify any inconsistencies.
- Plan communication campaigns to inform employees early.
- Register with NAERSA’s employer portal once available.
5. How should employment contracts be updated?
Contracts must reflect the new pension arrangements from day one of employment. If an employer operates both auto-enrolment and occupational schemes, HR should clearly define which employees fall under which scheme. Updates should be made in consultation with legal and pension advisors.
6. How will auto-enrolment affect payroll and HR systems?
Although NARSA will handle much of the administration, internal HR and payroll systems will need to:
- Track enrolments, opt-ins, and opt-outs
- Handle contributions for employees on maternity, parental, or sick leave
- Maintain secure pension data compliant with GDPR
7. What communication is required with employees?
Effective communication is essential. Employees must understand:
- When deductions will start
- How contributions work
- Options to opt out or rejoin
- How the scheme interacts with existing pensions
Yvonne's advice: “Always Be Communicating” — start engagement early, be transparent, and repeat key messages.
8. How should employers handle current staff vs. new hires?
For new employees, auto-enrolment information should be part of onboarding and induction materials.
For existing staff, changes must be discussed in advance — especially since adjustments may affect their current terms and conditions. Avoid introducing mandatory changes without consultation to prevent grievances.
9. How does auto-enrolment affect talent attraction and retention?
A strong pension offering can significantly enhance employer branding and staff retention. Employers may choose to offer enhanced contributions or maintain defined contribution (DC) schemes for senior roles to stay competitive.
Clarke advised viewing pensions as part of the total rewards package, not just a compliance obligation.
10. How can employers monitor compliance over time?
Establish robust monitoring and audit systems to ensure:
- Timely enrolment of new staff
- Accurate contribution processing
- Regular reviews with pension providers
- Documentation of all employee communications
Auto-enrolment compliance should become part of ongoing HR processes and annual reviews.
11. What policies and documentation should be reviewed?
Employers should review and update:
- Contracts of employment
- Leave and absence policies (including maternity, parental, and sick leave)
- Probation and retirement policies
- Recruitment and onboarding materials
- Exit interview processes
This ensures consistency and clear communication of pension entitlements.
12. What about data protection and GDPR?
Employers must ensure secure handling of pension-related data. This includes safeguarding payroll information, contribution records, and communications shared with NAERSA or pension providers.
13. How does this fit into overall HR strategy?
Auto-enrolment should be integrated into:
- Workforce planning: Aligning pension strategies with employee demographics.
- Compensation and benefits reviews: Ensuring pensions complement total remuneration.
- Employee well-being initiatives: Promoting financial literacy and long-term savings awareness.
14. What’s the key takeaway for HR leaders?
Start preparing now. The success of auto-enrolment will depend on early action, thorough communication, and close coordination between HR, payroll, and finance teams. As Yvonne Clarke summarised:
“Consultation and communication are the foundation of successful implementation.”
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.
