Auto Enrolment: A guide for employers

What is Auto-Enrolment?

Auto-Enrolment is a new system in Ireland that makes saving for retirement mandatory for many workers. Starting on 30 September 2025, this plan aims to increase the number of people saving for retirement. The government expects it will help about 800,000 new savers.

For employers, this will mean new rules to follow and higher costs. It’s important to understand how auto-enrolment will affect your business and your employees, both now and in the future.

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How will auto-enrolment work?
All employers should start preparing for auto-enrolment now. Here’s a quick summary of the key points:

Who is included?

• Employees aged 23–60 who earn more than €20,000 per year will be automatically enrolled in the new State run retirement savings system.
• Workers won’t be enrolled if they are already saving through a qualifying pension plan (such as Personal Retirement Savings Account of occupational pension plan).
• Auto-enrolment doesn’t apply to self-employed individuals.

How will the system work?

• The central retirement savings system is called “My Future Fund” (MFF).
• It will be overseen by the National Automatic Enrolment Retirement Savings Authority (NAERSA).
• Employers and employees will make mandatory contributions, but employees can opt out at certain times.

Contribution rates:

• Both employers and employees will start by contributing 1.5% of gross earnings for the first three years (up to €80,000).
• Contributions will rise every three years, reaching a maximum of 6% by year 10.
• The government will also top up employee contributions.
• Employees cannot contribute more or less than the outlined rates.

Existing pension plans:

• Employers can keep their current pension plans, but these plans will need to meet minimum standards by year seven of the auto-enrolment system.
• Employees must consent to join the employer’s pension plan or PRSA scheme. If they don’t, they will be enrolled in MFF unless the employer pays a contribution to the plan on their behalf.
• As a result, if an employer wishes to use their own pension plan in lieu of the State run scheme, employee engagement is vital.

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What should employers do now?
To prepare, employers should:

1. Understand who will be affected. This includes all employees earning over €20,000 per year, including part-time and temporary workers.
2. Decide how to meet the requirements. You can either use MFF or adapt your existing pension plan.
3. Engage with employees. Explain their options and get their agreement if you want to use your own pension plan.

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How much will it cost?
Auto-enrolment will add new costs for businesses. Employers need to budget for:

• Contributions: Starting at 1.5% of earnings per employee and rising over time.
• Setup expenses: Adjusting payroll systems or introducing new pension plans.

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How Sure Financial can help you:

Our pension team are already assisting companies identify and access the implications of the introduction of the new State run scheme, put plans in place and take the actions required prior to the implementation of the scheme.

Our team can assist with:

• Strategy & Planning: We can help you develop a strategy to meet your Auto-Enrolment obligations and analyse cost implications both during the implementation stage and over the longer term.
• Pension Advice: We can review your current pension scheme, access the impacts of the legislation and recommend changes to your existing arrangements.
• Employee Communication & Engagement: We can create clear messages to help employees understand their options.

The legislation will affect 100,000’s of companies and their employees. With so many employers needing advice and assistance, it is very likely that advisory firms will reach full capacity as the deadline approaches.

Starting early is essential. Make the transition to auto-enrolment smoother for your business and your employees by getting started today.

If you need support or assistance with Auto-Enrolment, contact the team today.