Preparing for Ireland’s auto enrolment pension reform

Auto enrolment will ensure that more employees start saving for retirement and employers play a key role in making this happen.

Many employers are aware of these upcoming changes, but to clarify the details of the new process and address any outstanding questions, Hilary Larkin, Partner & Head of Outsourcing, hosted a dedicated webinar on 11 November.

With expert insights from Paul Orde, Assistant Principal Officer for the Auto-Enrolment Programme at the Department of Social Protection, and Jennifer O’Neill, Director of PayrollOutsourcing Services at Forvis Mazars, the discussion offered practical guidance to help organisations prepare for Ireland’s landmark workplace pension reform.

What is auto enrolment?

The new system will automatically enrol eligible employees into a retirement savings plan. To qualify, employees must earn €20,000 or more per year, be aged between 23 and 60 and not already be in a pension scheme.

Those outside the age and income criteria can opt in voluntarily. Self-employed individuals and existing pension members are excluded.

How contributions work

Employers and employees will contribute equal amounts, with the government adding a top-up. Rates will start at 1.5% for both employers and employees (plus 0.5% from the government) and will gradually increase to 6% and 2% respectively by 2035.

Employees will be automatically enrolled but can opt out during specific windows after contributions begin.

Employer responsibilities

The National Automatic Enrolment Retirement Savings Authority (NAERSA) will manage the programme through a central portal. All employers need to do it to register on this portal in December 2025, set up payment methods and then run payroll as usual. Penalties will apply for non-compliance.

Why this matters

Auto enrolment was designed to ensure employees have a pension that goes beyond the basic state pension. The system prioritises simplicity and efficiency, with NAERSA taking on the administrative burden, making it easier for both employers and employees to participate.

Employers should act now to understand their obligations and prepare for a smooth transition.

For more information on how our expert team can help you prepare for auto enrolment, please contact Hilary Larkin and Jennifer O’Neill.