Auto Enrolment Pension: What’s Next for Employers Under My Future Fund

Auto Enrolment Pension Set to Transform Pensions in Ireland, we explored how the new Auto Enrolment Pension, also known as My Future Fund, will reshape workplace pensions across Ireland.

Now, as we move closer to January 2026, employers are shifting their focus from understanding the basics to preparing their payroll systems and ensuring compliance. That is why Big Red Cloud is continuing the conversation with a free webinar on 30th Oct at 11:00 AM (Dublin). This live session will provide new insights, practical advice, and answers to the most recent questions from Irish employers.

Understanding My Future Fund

The Auto Enrolment Pension will officially launch on 1 January 2026. Its purpose is to help more Irish workers save for retirement while simplifying the process for employers.

Under My Future Fund, eligible employees will automatically join the scheme without needing to opt in. The auto enrolment criteria are simple. Employees must be aged between 23 and 60, earn €20,000 or more per year, and not already have a workplace pension linked to payroll.

Employers will manage enrolments through payroll, match employee contributions, and the State will provide an additional top-up to support long-term savings.

How Auto Enrolment Contributions Work

The system is built on shared responsibility between employees, employers, and the State. When auto enrolment contributions begin in 2026, employees will contribute 1.5 percent of their gross salary. Employers will match this contribution, and the State will add one euro for every three euros saved. Over the following decade, these rates will gradually increase to six percent for both employers and employees.

Employees can opt out during months seven and eight after enrolment or suspend their contributions for up to two years after the first six months. Contributions will stop once an employee’s annual earnings reach €80,000.

Why This Webinar Matters

Our previous session gave employers a clear understanding of how pension auto enrolment will work under My Future Fund. Due to high demand, we are hosting the same webinar again for those who missed it or want a refresher. This session will revisit the core details of the scheme and address a new set of live questions submitted by Irish employers.

During the live event, Dave Meade, Business Analyst at Big Red Cloud, will explain how My Future Fund will integrate with payroll systems, outline the key steps employers should take, and share advice on managing opt-outs, suspensions, and compliance.

Frequently Asked Questions About Auto Enrolment

Employers have continued to raise important questions since our first session. Here are some of the most common topics that will also be discussed during our next webinar.

Are company directors included in the auto enrolment pension?

Yes. Company directors who pay PRSI as employees will be enrolled under the My Future Fund scheme once they meet the eligibility requirements. This ensures directors who receive a regular salary, like other employees, are included in Ireland’s national savings effort. However, self-employed directors or those who do not pay PRSI as employees will not be automatically enrolled. These directors may still plan their retirement savings separately, but they will not fall within the scope of auto enrolment unless future amendments include them.

What happens if an employee earns less than €20,000?

Employees who earn below €20,000 in total annual income will not be automatically enrolled. However, they can still choose to join voluntarily through the NAERSA portal if they wish to contribute toward a My Future Fund account. This flexibility ensures that lower-income or part-time workers who want to save for their future can still participate even if they are outside the default auto enrolment criteria.

If a worker’s income rises above €20,000 during the year, the NAERSA system will automatically assess and enrol them based on their updated earnings information.

Can employees opt out of the scheme?

Yes. Employees can opt out during months seven or eight after being enrolled and will receive a full refund of their contributions for that period. This gives individuals time to experience the impact of contributions before deciding whether to continue. Employees can also suspend their contributions after the first six months for up to two years if they need financial flexibility.

Employers should keep track of these changes in their payroll system to ensure deductions stop or resume at the right time. Big Red Cloud Payroll will include built-in tools to handle these changes automatically, so businesses remain compliant without manual tracking.

What if an employee has more than one job?

Eligibility for the auto enrol pension is determined by total income across all employments. If the combined income from multiple jobs exceeds €20,000, the employee will be automatically enrolled. This approach ensures that all income sources are considered fairly and that employees who meet the financial threshold through multiple employers are not left out of the scheme.

In practice, NAERSA will review payroll data from different employers using a rolling 13-week check. Employers only need to ensure that their payroll data is accurate and submitted on time for the system to make correct enrolment decisions.

Are employers required to notify employees?

Yes. Employers must inform their staff once they have been enrolled in the My Future Fund system. This notification must clearly outline the enrolment date, the employee’s contribution rate, and their rights to opt out or suspend contributions.

To make this process easier, Big Red Cloud Payroll will automatically generate employee notification templates in email or PDF format, ensuring compliance with legal requirements while saving time for employers. Clear communication with employees is not only a regulatory duty but also helps build trust and understanding about the benefits of the auto enrolment pension.

Preparing for 2026

Although the Auto Enrolment Pension will go live in 2026, employer registration with the NAERSA portal is expected to open in late 2025. Getting ready early will save time and prevent errors once the system is active.

In December 2025, we will release Payroll 2026, which will include full functionality for My Future Fund. This version will enable employers to process deductions automatically, manage employee notifications, and submit contributions directly to NAERSA.

Now is the perfect time to review your pension processes, forecast contribution costs, and ensure your HR and payroll teams are prepared for the transition. Early preparation is key to staying compliant and maintaining smooth payroll operations once the new system begins.

Join Us Live and Stay Ahead

The Auto Enrolment Pension will redefine how employers and employees in Ireland manage retirement savings. Our upcoming webinar on 30th Oct at 11:00 AM (Dublin) will ensure you are informed, compliant, and fully ready for 2026.

Register Now

If you joined our previous webinar in September, this upcoming session will revisit the same essential content while featuring a fresh round of live questions from Irish employers. It is a great opportunity to refresh your understanding, stay updated, and hear new insights that may also apply to your business.

You can also revisit our earlier article, Auto Enrolment Pension Set to Transform Pensions in Ireland, for a full overview of how the My Future Fund system works and what it means for employers.