Pension auto enrolment in Ireland: what employers must do

Pension auto enrolment, branded My Future Fund, has been in force in Ireland since 1 January 2026. As of October 2026, an employer with enrolled staff must apply the latest payroll notification on each pay run and pay a matching 1.5% of gross pay by 6.30pm on the pay date. The National Automatic Enrolment Retirement Savings Authority (NAERSA) decides who is enrolled, not the employer.

Who is enrolled

According to gov.ie, NAERSA uses Revenue payroll data to enrol employees who:

• are aged between 23 and 60 (the 2024 Act says at least 23 and under 60)
• earn €20,000 or more a year across all employments
• are not already paying into a pension through payroll

NAERSA treats an employee as likely to meet the earnings test if they earn over €5,000 in a 13 week period, so part time, temporary and seasonal staff can be enrolled. Employees aged 18 to 22 or 60 to 66, or earning under €20,000, can opt in, and you then owe the same matching contribution.

What it costs

Contributions are a fixed percentage of gross pay, and neither side can pay more or less. NAERSA's timetable follows the age of the scheme, not the employee's time in it:

• 2026 to 2028: employee 1.5%, employer 1.5%, State 0.5%
• 2029 to 2031: 3%, 3% and 1%
• 2032 to 2034: 4.5%, 4.5% and 1.5%
• 2035 onwards: 6%, 6% and 2%

The State top up is €1 for every €3 the employee pays, in place of tax relief. Contributions are not collected on gross pay above €80,000 in a calendar year. According to Revenue, employer contributions are deductible for corporation tax and are not a benefit in kind for the employee.

What payroll must do

NAERSA's employer guidance sets out the routine:

• Register once. Log in to the employer portal with your ROS certificate, complete the company profile and set up a payment method. NAERSA recommends direct debit.
• Get the latest notification before each pay run. The Automatic Enrolment Payroll Notification (AEPN) lists who is enrolled and at what rate, and changes when an employee opts in, opts out or suspends.
• Submit and pay on the pay date. Both the payroll submission and the payment are due by 6.30pm.
• Tell the employee. When NAERSA tells you someone has been enrolled, you must notify them of the enrolment date within 14 days. NAERSA supplies a welcome letter for this.

Opt out, suspension and being enrolled again

Under NAERSA's rules, an employee stays in for at least six months. They can then opt out in months seven and eight and get their own contributions back, while employer and State contributions stay in their fund. For anyone enrolled in January 2026, that window was July and August 2026. A further window follows each rate change from 2029. After six months an employee can instead suspend contributions for at least 12 months. Either way, your contributions stop too, and NAERSA enrols the person again after two years if they are still eligible.

You must not ask or pressure anyone to opt out or suspend. Gov.ie describes auto enrolment as an employment right, with penalisation cases going to the Workplace Relations Commission.

If you already run a pension scheme

An employment is exempt where pension contributions already go through payroll and meet the minimum standards in force since 1 January 2026. For a defined contribution scheme or PRSA, total contributions must be at least 3.5% of gross pay or €2,800 a year, whichever is lesser, including at least 1.5% or €1,200 from the employer. A defined benefit scheme qualifies where continuing service earns a long service benefit. Staff outside your scheme, including new hires in a waiting period, are enrolled in My Future Fund if they meet the tests. Gov.ie says the duty to offer access to a PRSA is unchanged and that further standards are likely.

Penalties

NAERSA issues reminders 6 and 11 working days after a missed due date, then a compliance notice giving two weeks to pay, and interest can run from the date the contribution became late. NAERSA lists fixed fines of up to €5,000 for minor breaches and, for serious offences such as withholding contributions or obstructing participation, up to €50,000, up to three years in prison, or both. Since 1 June 2026, S.I. No. 215 of 2026 sets a €250 fixed payment notice for failing to notify an employee of their enrolment.

What changes in 2027

No change to rates or thresholds is scheduled: 1.5% applies to the end of 2028 and the first step up is in 2029. The Budget 2027 Expenditure Report, published on 6 October 2026, provides €160 million for State contributions in 2027, and the Budget documents we checked contain no change to eligibility, rates or the €80,000 ceiling. In February 2026 the Department of Social Protection said it would look in the medium term at additional voluntary contributions, transfers in, drawdown options and extending the scheme to others, with no dates given.

FH Recruitment's HR consultancy can help with the people side: contract and handbook wording, briefing staff, and answering questions without steering anyone's decision. Scope, fee and timings are agreed in writing before work starts. This is general information, not legal, tax or pensions advice, so confirm your own position with NAERSA, Revenue or a qualified adviser.

Sources

Sources checked on 6 October 2026.

• gov.ie, Department of Social Protection: auto enrolment guides for employers and employees and questions answered page (updated 14 January 2026); press releases of 24 December 2025 and 9 February 2026
• NAERSA, myfuturefund.ie: employer, About NAERSA and Manage your fund pages
• Revenue: Pensions Manual, Chapter 32
• Irish Statute Book: Automatic Enrolment Retirement Savings System Act 2024 as amended in 2025; S.I. No. 668 of 2025; S.I. No. 215 of 2026
• gov.ie: Budget 2027 documents, including the Expenditure Report (6 October 2026)