Auto Enrolment Pension Set to Transform Pensions in Ireland

Ireland is on the cusp of a retirement savings revolution. The government’s new Auto Enrolment Pension scheme, My Future Fund, will officially launch on 1 January 2026, marking the biggest shake-up of workplace pensions in decades.

To help employers prepare, Big Red Cloud recently hosted a live webinar where industry experts broke down the changes, answered burning questions, and shared practical insights on how businesses can stay compliant without the headache. If you missed it, don’t worry, we’ve included the full recording, presentation slides, and the FAQs we addressed during the session right here.

Why This Auto Enrolment Pension Matters for Employers in Ireland

According to CSO figures, fewer than 35% of private-sector workers in Ireland have pension cover. This gap means many employees risk a sharp drop in income when they retire. My Future Fund is designed to change that and to make saving for retirement automatic, fair, and simple.

From 2026, every eligible worker (aged 23–60, earning €20,000+, and not already in a payroll-linked pension) will be automatically enrolled. Employers will be required by law to facilitate contributions through payroll.

Big Red Cloud’s payroll software will be fully updated in time for January 2026, ensuring Irish employers can handle auto enrolment smoothly from day one.

How Contributions Work in Auto Enrolment Pension

At the heart of the scheme is a triple contribution model:

• Employees contribute a fixed percentage of gross pay.

• Employers match that contribution.

• The State adds a top-up.

That means for every €3 an employee contributes, the employer adds €3, and the State contributes €1, bringing the total to €7 saved.

Contribution rates will gradually increase from 1.5% in 2026 to 6% by 2035, with the State increasing its support at each step. This phased approach is designed to help businesses and workers adjust while building strong, long-term savings.

Webinar Insights: My Future Fund & Pensions in Ireland

Our session on 10 September 2025 gave employers a first-hand look at what lies ahead. Here are the highlights:

• Eligibility is automatic no paperwork, no provider selection.

• No waiting periods for new employees; NAERSA (the new authority) will run rolling 13-week checks.

• Opt-out windows: months 7–8 after enrolment or contribution changes.

• Suspension allowed: employees can pause contributions for 1–2 years after the initial six months.

• Payroll readiness: Big Red Cloud Payroll will feature an AEPN lookup, automatic deductions, and submissions to NAERSA.

• Employer compliance: registration with the NAERSA Employer Portal is mandatory in late 2025.

Download the Presentation Slides Here – Get the full breakdown of My Future Fund and Auto Enrolment Pension.

Auto Enrolment Pension: Your FAQs Answered

During the live session, Irish employers raised important questions. Here are some of the most common and their answers:

What counts as gross pay for pension contributions?
Anything listed in the gross pay field: salary, overtime, holiday pay, bonuses, commission, BIKs, share options, lump sums.

Will company directors be enrolled?
Yes, if paying PRSI as employees and meeting eligibility rules. Directors registered as self-employed are not currently eligible.

Do employers need to inform staff?
Yes. Employers are legally obliged to notify employees when they’ve been enrolled and the exact date. Big Red Cloud Payroll will generate notifications automatically.

Are there contribution caps?
Yes. Once an employee reaches €80,000 gross in a year, contributions stop for the remainder of that calendar year.

What if an employee joins a pension scheme mid-year?
They’ll be deemed ineligible for auto enrolment the next payroll cycle, but there may be a crossover period where both deductions apply.

What Employers in Ireland Should Do Next

While there’s still time before 2026, businesses should begin preparing:

• Forecast your pension contributions: employer rates rise from 1.5% to 6% over 10 years.

• Review existing pension schemes: check if your occupational scheme qualifies as an exemption.

• Get payroll ready: Big Red Cloud Payroll will include full auto enrolment support in the December 2025 release.

• Stay compliant: registration with the NAERSA Employer Portal (Q4 2025) will be a legal requirement.

Making Pensions in Ireland Simple

At Big Red Cloud, our mission is simple: to make compliance stress-free for Irish employers. From cloud accounting to payroll compliance, we’re here to help small and medium businesses adapt to every change including the upcoming auto enrolment pension scheme.

With seamless payroll updates, submission tools, and built-in employee notifications, Big Red Cloud ensures you’re not just ready for 2026 you’re ahead of it. Stay prepared. Stay compliant. Stay supported with Big Red Cloud.