Auto Enrolment
AUTO ENROLMENT – ANOTHER EMPLOYER OBLIGATION
MY FUTURE FUND.
What do you need to know as employer – here it is!
Auto enrolment is due to come into effect on 30th September 2025. (The go Live date)
The rates will increase in % from the anniversary of the Launch of this scheme and not calendar year
Revenue will go back 13 weeks from the date of the first submission and if €5000 has been earned, it will be eligible for AE and Employees over €20,000 will be opted in from the beginning.
Payroll Software companies are currently working with Revenue to have the facility available.
NAERSA has been set up to do the administrative duties of managing My Future fund and any queries on this will be able to go directly to them at autoenrolment@welfare.ie
Employers are encouraged to use the above email address for any queries and the department will come back to them individually.
It is advised that Employers go on the Training also.
You will be automatically enrolled in the new pension scheme if you are an employee and:
You are aged between 23 and 60
You are not currently part of a pension plan
You earn €20,000 or more per year (But they can opt in if they wish, and the employer must pay the contribution for them!)
The amount you pay will be a set rate of your annual salary. Your employer will match your contributions, and the Government will contribute an additional amount. You cannot pay more or less than the set rate.
You and your employer will pay 1.5% of your annual salary in the first year. This will increase to 6% by year 10.
The table below sets out the rates you, your employer, and the Government will pay:
Both an employer’s and the Government’s contributions are capped at €80,000 gross annual salary.
This means for the first 3 years; the maximum amount an employer can contribute is €1,200 a year. This is because 1.5% of €80,000 is €1,200. The maximum amount the Government can contribute is €400 a year, which is 0.5% of €80,000.
If you earn over €80,000, you can still contribute but your employer or the Government won't match your contributions on any income over €80,000.
Questions answered:
What effect does it have on the current old age pension? It will have no impact on the existing state pension – this is separate.
This state pension is calculated with the PRSI – Auto enrolment will be separate to the state pension and calculated on contributions only.
What is the investment risk? This will not be guaranteed by the state, but it will be subject to Control and a regulatory restriction
When is the first deduction date? It will be immediate – for some employees and the first pay period processed for each employee.
When will the payment come out? Different from the Revenue model – the direct debit will be taken on pay date. (Weekly or Monthly)
Where Gross pay changes each week? Fixed % so it goes up and down depending on the Gross each pay period.
How can employee manage the pension? Each employee will have their own portal and can pause, manage and change their risk score. At the start, it defaults to the lowest risk fund.
Is there a waiting period? There will be no waiting period like other schemes.
What is my obligation as Employer?
The onus is on the Employer once they get a payroll notification to inform the Employee that they are enrolled in the Auto enrolment scheme and the start date (this is important for
Employees that want to opt out)
The employer will be obliged to register with NAERSA and set up a Variable Direct Debit – the DD will be taken out at pay date (weekly, fortnightly or monthly) whichever is pay day of the employee.
The employer will be required to use the Employer portal
There is no minimum standard amount for existing pensions, as the % is 1.5% now and as the years go on and the % will be higher, the scheme has to be the minimum of that as it goes along.
Big one here! Employees be automatically entered onto the scheme once their gross pay is €20,000 per annum but an employee has the right to opt in if they wish.
The Employer is being advised to budget for this change as it will be another cost to the business.
