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Big changes are coming to workplace pensions in Ireland. From 1st January 2026, every qualifying employee will be automatically enrolled into the new My Future Fund pension scheme. This is the start of pension auto enrolment in Ireland and if you’re an employer, it’s something you cannot ignore.
At Big Red Cloud, we understand that new rules like these can feel overwhelming. That’s why we’re breaking down what it means for you, and more importantly, how to get ready.
Pension auto enrolment means eligible employees are automatically enrolled into a retirement savings scheme. It removes the choice to opt in unless they actively opt out, they’re included. The aim is simple: to make saving for retirement automatic, and to ensure more workers in Ireland have financial security for the future.
The rules are straightforward. Auto enrolment applies to employees between the ages of 23 and 60, earning €20,000 or more each year, who don’t already have a workplace pension linked to payroll.
If you employ part-time staff or students, they will also be enrolled once their annual income crosses €20,000. Directors are included too, provided they pay PRSI as employees. Staff under 23 or over 60 aren’t enrolled automatically but can choose to opt in if they wish.
As an employer, you will have new legal responsibilities. You’ll need to register with the NAERSA employer portal when it opens in late 2025. From then, your payroll system must deduct contributions from employees, match those contributions from your side, and submit both directly to NAERSA.
You’re also required to notify staff when they’ve been enrolled. Missing contributions or failing to comply won’t just cause confusion, it’s an offence.
The contribution model is shared between the employee, the employer, and the State. Employees will start by contributing 1.5% of their gross pay. Employers must match that, and the State will top up €1 for every €3 saved. Over time, this will gradually rise to 6% for both employers and employees.
There are also safeguards for employees. They can opt out in months seven and eight after enrolment and receive a refund. Later, they may suspend contributions for up to two years. Contributions stop once someone reaches €80,000 in annual income.
We know you have questions and you’re not alone. Employers have already asked us what happens if staff are paid on a net pay basis in industries like construction. The answer is that contributions will still be taken, and payroll will gross them up correctly.
Others want to know about directors. If a director pays PRSI as an employee, they are included. If they are registered as self-employed, they are not.
Some employers worry about staff earning less than €20,000. Those employees won’t be automatically enrolled, but they can still choose to join through NAERSA.
And yes — you must inform your employees when they are enrolled. The good news is that payroll systems like Big Red Cloud will generate these notifications for you.
Why You Should Prepare Now
January 2026 may sound far away, but getting ready takes time. You’ll need to budget for contributions, check if your current pension scheme is exempt, and update payroll to handle auto enrolment smoothly. Preparing now means you’ll avoid penalties later and ensure a stress-free rollout for your team.
To make this easier, we’re hosting a free webinar on Thursday, 30 October 2025 at 11:00 AM (Dublin). Our payroll compliance expert, Dave Meade, will explain exactly how auto enrolment works, what it means for your business, and how to prepare your payroll. You’ll also hear answers to real employer questions and get a clear checklist for 2026.
At Big Red Cloud, we’ve supported Irish SMEs for over a decade. Our payroll software will be fully updated in time for auto enrolment, so you can process contributions, send notifications, and stay compliant without the stress. Pension auto enrolment is coming but with the right preparation and support, you’ll be ready.
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