Ireland: Impending Introduction of Mandatory Pension Auto-Enrolment in Ireland

On 1 January 2026, Ireland will introduce the long-awaited pension auto-enrolment scheme known as “My Future Fund.”  This scheme will apply to employees aged between 23-60 earning over €20,000 per year who are not already enrolled in a pension scheme. The scheme is designed to support the aging population of Ireland, to try to ensure people can maintain a certain standard of living on retirement.

From 1 January 2026, the new mandatory retirement savings scheme known as My Future Fund will come into effect. The Automatic Enrolment Retirement Savings System Act 2024 gives effect to the introduction of My Future Fund.  Auto-enrolment was  initially due to be introduced in January 2025 and was postponed to September 2025 and is now intended to take effect on 1 January 2026.

This scheme will automatically enrol all employees, aged between 23 and 60, earning in excess of €20,000 per annum, who are not already enrolled in an Irish workplace pension scheme. Employees aged below 23 or over the age of 60 or those employees earning less than €20,000 per annum may opt into the scheme if they wish.

Auto-enrolment will be run and managed by a new independent body set up by the Department of Social Protection, called the National Automatic Enrolment Retirement Savings Authority (NAERSA). Employees will have access to this portal to view their pension savings, contributions and investment returns. The portal will also allow for employees to opt out (after a period of 6 months), suspend contributions or opt-into the scheme.

Under the scheme, the employer, the employee and the government will all contribute to the employee’s pension fund: the employee and employer will each contribute 1.5% and the State will top it up by 0.5%. This means that for every €3 contributed by the employee, €7 will be put into the employee’s account. This employer/employee contribution will increase by 1.5% every 3 years, until reaching 6% by year 10.  The State contribution will increase by 0.5% every 3 years, until reaching 2% by year 10.

Employees may be exempt from the scheme if they and/or their employer contribute to a qualifying pension arrangement.

Both the employer and State contributions are capped at €80,000 gross annual salary.  If an employee earns over €80,000, they can still contribute but the employer/State will not match contributions on any income over €80,000 per year.

It is important for employers to note the criteria and obligations imposed on them. Employers are required to set up a profile on My Future Fund portal which opens in December 2025. All employers should set up a payment method to contribute to the scheme and ensure that payroll continues as normal. An employer will need to make a separate return through payroll directly to the National Automatic Enrolment Retirement Savings Authority.

All employers with at least one employee who is subject to income tax in Ireland will need to comply with the legislation. Employers should note that a breach of implementation of the scheme under the legislation is a criminal offence with sanctions ranging from fines of €5,000 to €50,000 and potential imprisonment, depending on the offence committed.

This auto-enrolment scheme will not replace the standard state pension in Ireland. The purpose of the scheme is to increase the retirement savings of the Irish workforce and to supplement the State Pension and not to replace it. This savings scheme can be accessed at the current State retirement age of 66.

If not already done, it is imperative that employers act now to assess their workforce to determine the impact that the scheme may have on their business.