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The Clock's Ticking: It’s Time to Take Control of Pension Auto-Enrolment!
Ireland’s new My Future Fund auto-enrolment system starts 1 January 2026. It will automatically enrol eligible employees into a workplace pension, managed by the National Automatic Enrolment Retirement Savings Authority (NAERSA). Are you ready?
Let’s get straight to the facts and give you the tools you need to prepare.
Who’s In?
You must enrol employees who:
- Are 23–60 years old
- Earn €20,000+ per year (across all jobs)
- Don’t already contribute to a workplace or private pension via payroll
Others can opt in
The Three-Way Boost
For every €3 an employee contributes, you as the employer will add another €3, and the State will top it up with an extra €1. That's a huge 33% bonus on every contribution, right from the start!
The contributions are phased in over a 10-year period, with the rate increasing every three years. Contributions are capped on earnings up to €80,000 per year.
Years of Enrolment | Employee Contribution | Employer Contribution | Government Top-Up |
Years 1-3 | 1.5% | 1.5% | 0.5% |
Years 4-6 | 3% | 3% | 1% |
Years 7-9 | 4.5% | 4.5% | 1.5% |
Year 10+ | 6% | 6% | 2% |
Your Action Plan
Pension auto-enrolment places new responsibilities on your shoulders, but with the right plan, you can turn this challenge into a seamless process.
- Identify Every Eligible Employee: Use your payroll data to pinpoint every person who qualifies. No one should be left behind.
- Integrate Your Systems: Make sure your payroll software is ready to handle the new deductions and reporting requirements. Don't wait until the last minute.
- Build Your Communication Plan: Don't let your team be caught off guard. Proactively communicate what’s happening, explaining the benefits and how it will impact their pay. Clear, early communication is your best defence against confusion and high opt-out rates.
- Manage Existing Schemes: If you already have a pension in place, you need to determine if it meets the new auto-enrolment standards. Don't assume; check the details and plan your next move.
Overcoming the "Opt-Out" Hurdle
While enrolment is automatic, employees have the right to opt out during a specific window (six to eight months after enrolment). If they do, their contributions will be refunded. However, the system is designed for long-term success. Every eligible employee who opts out will be re-enrolled automatically every two years. This powerful feature ensures that over time, your team is consistently nudged towards securing their financial future.
Turn Compliance into an Advantage
Don't just view this as a box to tick. See it as a powerful tool to enhance your employer brand. In today's competitive talent market, a robust pension scheme is a key differentiator. It shows you care about your team's long-term financial wellbeing, not just their short-term salary. This builds trust, boosts loyalty, and helps you attract and retain top talent.
Ready to equip your business for what's ahead? Download our exclusive Pension Auto-Enrolment Readiness Checklist to get started.
Should you require any assistance with your ICOB grant application please do not hesitate to contact a member of the DBASS team on info@dbass.ie or 01 849 88 00, we would be happy to help.