Ireland’s Auto-Enrolment Pension Scheme, officially known as My Future Fund is set to go live in January 2026 and marks one of the biggest shifts in Irish retirement planning in decades.
The My Future Fund portal will open for registrations by 1 December 2025, giving employers and employees time to prepare.
Employers won’t be auto-enrolled themselves and they they will need to set up access before the first contributions start in January 2026. Employees don’t need to do anything.
Here’s what we know so far…
The Basics
Auto-enrolment will apply to employees between 23 and 60 years of age who earn €20,000 or more per year across all employments and who are not already contributing to a workplace pension through payroll. The words “through payroll” are very important there.
Contribution will be capped at €80,000 (i.e., employer/State contributions apply only up to €80,000 of pay)
How Contributions Work
Auto-enrolment is a three-way contribution model involving employee, employer, and the State all paying in. So basically, it’s an expense to the employer as well.
| Years in Scheme | Emp-ee | Emp-er | State Top-Up | Total – |
|---|---|---|---|---|
| 1–3 | 1.5% | 1.5% | 0.5% | 3.5% |
| 4–6 | 3% | 3% | 1% | 7% |
| 7–9 | 4.5% | 4.5% | 1.5% | 10.5% |
| 10+ | 6% | 6% | 2% | 14% |
TAX RELIEF
Contributions are calculated on gross pay but deducted from net pay which means there’s no tax relief at source. Instead, the State provides a 25% top-up (for every €3 the employee pays, the Government adds €1). As the
Auto-enrolment = No tax relief, but a State top-up
Private pension = Tax relief, but no top-up
This structure will generally better benefit those on the 20% tax band, while higher-rate (40%) taxpayers may still prefer private pensions for better tax efficiency.
€20,000 Threshold
The €20,000 eligibility threshold is not applied on a simple monthly basis. Instead, a 13-week look-back period is applied based on Revenue payroll data. If an employee’s average earnings during that period indicate an annualised income of €20,000 or more, they will be automatically enrolled (even if their total income for the year later falls below that figure.)
The check is forward looking and will be repeated periodically, so eligibility could change as earnings fluctuate.
OPTING OUT?
The million dollar question! Employees can opt out between months 6 and 8 after enrollment and their own contributions will generally be refunded. They can voluntarily opt back in at any time later. If they opt out after month 8 however, there’s no refund of the initital contributions.
The employer cannot opt out. This is mandatory for employers.
EXEMPTIONS
Workers who don’t satisfy the standard eligibility conditions e..g earning under €20,000 per year or being outside the 23-60 age range will not be automatically enrolled, though they may be able to opt in voluntarily. Also, self-employed individuals and those not paid through an employer’s payroll are excluded from the initial automatic enrolment phase.
Cross-border workers, non-resident employees, and those employed by foreign-based companies not registered for Irish payroll may fall outside the scope of auto-enrollment. This will have to be clarified closer to launch.
Auto-Enrolment vs Private Pensions: Control and Choice
While auto-enrolment brings simplicity, it also means will give less control than a private or occupational pension. Participants will have limited investment options, all managed centrally, and cannot select their own pension provider. Contribution levels are fixed by law and rise gradually over time. By contrast, a private pension will generally allow more freedom.
In short, auto-enrolment guarantees participation and ease, while private pensions offer flexibility and personal choice. Each has its place.
END OF YEAR SALARY REVIEWS
As year-end approaches and with the minimum wage rising many employers will soon be reviewing pay. It’s important to factor auto-enrolment costs into those discussions. From 2026, employer pension contributions will become a mandatory part of total reward, starting at 1.5% of gross pay and increasing over time.
Salary planning should now account for this additional cost, especially as more employees cross the €20,000 earnings threshold. Auto-enrolment isn’t just a payroll change, it’s a new, long-term benefit that forms part of the overall employment package.
WANT TO LEARN MORE?
Anyone looking for more information or official updates on auto-enrolment can contact autoenrolment@welfare.ie.
If you’re interested in exploring pension options or support for your business, feel free to get in touch with me. I can arrange a referral to one of the pension specialists within our team. I’m not a pension adviser myself, but we have experts who can provide tailored guidance and help you understand what auto-enrolment means for your organisation.
-Lisa
Lisa Lokasto 
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