Auto Enrolment is Ireland’s new mandatory pension savings scheme, set to launch on 30th September 2025. 

Eligible employees will be automatically enrolled, with contributions from employees, employers, and the government.

Who needs to be enrolled, and how much will you have to contribute?

What steps should you take to stay compliant?

We’ll break down everything you need to know so you can prepare for the Auto Enrolment pension in Ireland with confidence.

What Is the Auto Enrolment Pension Scheme in Ireland?

The Auto Enrolment pension scheme is a new retirement savings system introduced by Ireland’s Department of Social Protection. The scheme aims to improve pension coverage and ensure greater financial security for workers in retirement.

It’s also known as the Automatic Enrolment Retirement Savings System or My Future Fund.

In this new scheme, the employer and employee will contribute to the employee’s pension pot, with the government adding an extra 33% of the employee's contribution. 

You will be automatically enrolled into this pension scheme if you meet 

The Irish government has also set up the National Automatic Enrolment Retirement Savings Authority, an independent body that will administer the Auto Enrolment (AE) scheme. 

Do you already have an occupational pension arrangement for your employees? 

If you offer an occupational pension plan to your employees and contribute to their pension pot, you’re not required to participate in the Auto Enrolment scheme. 

But your occupational scheme must cover all staff from their first day of employment (more about this in the section where we compare occupational and AE schemes).

Additionally, if your employees choose not to contribute to your occupational pension plan but you, as an employer, continue to make contributions on their behalf, those employees will be exempt from Auto Enrolment.        

We’ll discuss Auto Enrolment’s eligibility criteria and contributions in more detail once we understand why it’s needed in the first place. 

Why Is Auto Enrolment Pension Being Introduced in Ireland?

About 750,000 Irish workers don’t have access to an occupational pension scheme.

 post-retirement, which may not be enough

to sustain their living standards (check out 

That’s where the Auto Enrolment scheme comes in.  

It will allow employees to save more for their retirement, ensuring they won’t have to rely solely on the State Pension anymore.

Let’s look at the eligibility criteria, contributions, and other rules of the Auto-Enrolment scheme.

1. How Can Someone be Eligible for Auto-Enrolment in Ireland?

All eligible Irish employees not currently enrolled in an occupational pension will be automatically added to the Auto-Enrolment pension scheme.

To be eligible for automatic enrolment, the worker must be:

Employees not meeting the required age and salary criteria won’t be auto-enrolled in the scheme, but they can join it willingly — provided they don't already have an occupational pension scheme membership or aren’t contributing to one.

Additionally, employees who previously contributed to a pension but currently don’t will be auto-enrolled if they meet the above criteria.

If your employees are on probation or working casual or part-time, the National Automatic Enrolment Retirement Savings Authority will determine their eligibility for Auto-Enrolment.

2. What Are the Employee, Employer, and Government Contributions to Auto-Enrolment Pension?

In the AE retirement savings system, the government contributes to the employee’s pension pot in addition to employee and employer contributions. 

As an employer, you must match your employees’ contributions up to a specific limit (keep reading to find out this limit).

The AE pension scheme will follow a phased implementation. 

 (three years), the proposed yearly contributions to the retirement fund will be:

The contribution rates set for employees, employers, and the government will increase over the years as follows:

Suppose Saoirse, who got auto-enrolled in 2025, makes €20,000 annually and contributes 1.5% of her gross salary, i.e., €300, to her pension fund. 

Then, her employer must also contribute €300. The state will top this up by contributing 0.5% of her salary, i.e., €100, to her pension pot. 

So, a total of €700 will be added to Saoirse’s pension fund. 

Employee contributions will be deducted from their net income after income tax, pay-related social insurance (PRSI), and universal social charge (USC) have been deducted. 

Unlike traditional occupational pension schemes, the Auto Enrolment scheme doesn’t offer 

. In occupational schemes, this relief is typically applied at the employee's marginal tax rate.

Just like in an occupational pension scheme, employer contributions to Auto Enrolment pension are exempt from being treated as a taxable benefit. Simply put, this won't add to your employees' taxable income, making it a tax-smart way to enhance their retirement savings.

3. What Are the Opt-In/Out Rules for Ireland’s AE Pension Scheme?

The AE retirement saving system will operate on an ‘opt-out’ rather than an ‘opt-in’ basis to encourage employees to understand the benefits of retirement savings through a pension plan. 

All eligible employees will automatically be enrolled in the pension scheme — and they can only opt out of the Auto Enrolment scheme after six months of joining.

After six months in the scheme, employees have the option to opt out of Auto Enrolment (in the 7th or 8th month) and get a refund of their contributions. They also have the option to suspend their contributions at any time; however, in this case, they won’t get a refund. 

But what about the employer and government top-ups?

The contributions paid by employers and the state will remain in the pension pot because employees can only opt out of the scheme or suspend their contributions for a limited time. They’ll be automatically re-enrolled after two years. 

If employees want to opt out of the scheme again, they must repeat the entire process in two years time. 

4. Will the Employee’s Savings Be Secure?

Like in any other pension scheme, the government doesn’t guarantee the performance of an employee’s AE pension fund. 

This means the value of the employee’s pension pot may increase or drop depending on investment returns and inflation.

regularly monitor the functioning of the AE scheme to ensure all rules are followed. The government will also collaborate with reputed investment management companies to provide regulated financial services to ensure fund safety. 

Next, let's check out some drawbacks of the new AE scheme.

What Are the Limitations of the Irish Auto-Enrolment Pension Scheme? 

Ireland’s Auto Enrolment pension scheme is designed to help employees retire comfortably. 

 with the 33% state top-up, there are some drawbacks:

Auto Enrolment vs. occupational pension — how do they compare?

How Does the Auto-Enrolment Scheme Compare to Occupational Pension Schemes in Ireland?

Here’s an overview of the differences between the two pension schemes:

Setting up an occupational pension scheme is a great way to help your employees save for retirement. 

As mentioned earlier, if you already have an occupational pension scheme that covers all employees from their date of joining your company and you pay into the scheme, you don’t have to participate in AE.

To ensure that, update your occupation pension rules to make it:

Keep reading to discover more reasons to offer occupational pensions. 

How Should Employers Auto-Enrol Employees in Ireland?

The rollout of the Auto Enrolment retirement saving scheme will ensure that employers don’t have to set up a pension scheme or invest with a pension provider.

However, this can increase a department's administrative burden as they’ll need to handle budgetary concerns.

Here’s a plan for employers to prepare:

Auto Enrolment Pension Ireland: 2025 Guide

Ireland has named its proposed Auto Enrolment pension scheme "My Future Fund". 

Is it just a name change, or are there important updates employers need to know?

Let’s find out what this means for your business.

What Is My Future Fund and How Does it Work?

My Future Fund is Ireland's new Auto Enrolment retirement savings scheme, set to launch on 30th of September, 2025.  

It aims to improve pension coverage for 750,000 private sector workers in Ireland who currently lack retirement savings beyond the 

, strengthening Ireland's overall pension system.

The scheme will automatically enrol eligible employees in a pension plan, with contributions from the employee, employer, and the Irish government. 

Why Did the Irish Government Name Auto Enrolment “My Future Fund”? 

According to Heather Humphreys, the Minister for Social Protection, the new name, "My Future Fund," is 

meant to make people feel more connected to their pension

. It encourages them to take a more active role in saving for retirement.

It’s just a rebranding of the scheme that was previously known as “Auto Enrolment”.

The rules about who can join and how the scheme works are unchanged. 

Who Is Eligible for the My Future Fund Program?

To be automatically enrolled in My Future Fund, an Irish employee must:

Part-time and seasonal workers who meet the age and income requirements will also be enrolled.

An employee will not be auto enrolled if they are already a member of: 

To qualify for this exemption, their contributions must be processed through payroll.

The National Automatic Enrolment Retirement Savings Authority (NAERSA) is the administrative body that will oversee  My Future Fund in Ireland. They will identify employees eligible for Auto Enrolment, so employers won’t need to assess whether their workers meet the required criteria.

What Are the Contribution Rates for My Future Fund?

Under My Future Fund, contributions are based on a percentage of an employee’s gross salary, up to a maximum of €80,000 per year. 

Contribution rates are introduced gradually through a phasing-in period, which begins with My Future Fund’s launch in 2025 and ends in 2035 when the maximum rate of 6% applies.

Here’s a breakdown of employee, employer, and government contribution rates:

Employee contribution rates will increase gradually in phases:

As an employer, you will be required to match employee contributions. For example, if an employee contributes 1.5%, you will also contribute 1.5%.

The State will support these contributions by adding a top-up amount. 

This begins at 0.5% in year 1 and will gradually increase. By year 10, the State top-up will reach 2%.  

Auto Enrolment employee & employer contribution rates over time:

Let's say an employee’s combined income is €40,000 per year. In year 1 of My Future Fund:

This means that in the first year, €1,400 would be added to the employee’s retirement savings.

How Does This Compare With Occupational Pension Schemes?

Unlike My Future Fund, occupational pensions offer greater flexibility. 

You can tailor contributions to suit your business and your employees’ financial goals. 

Here’s how occupational pension contributions work in Ireland:

Want to set up an Irish occupational pension scheme? 

Kota: Your Trusted Partner For Occupational Pensions in Ireland

Kota is a digital pensions platform that lets you easily set up a 

 in minutes — all without any administrative burden or complex paperwork.

We partner with Irish Life to offer their 

EMPOWER Personal Lifestyle Strategy (Empower PLS)

 solution in Ireland, which has two key benefits:

 to empower your team with flexible, competitive pensions. 

Here are some common questions on Ireland’s new Auto Enrolment scheme:

1. Can An Employee Opt Out of My Future Fund?

 opt out for the first six months. After that, they have a two-month window (months 7-8) to do so.

If they opt out, they'll automatically be re-enrolled 2 years later.

Employers can't opt out of the scheme. It's a legal requirement, with fines and potential prosecution for non-compliance.

2. How Will the Contributions Be Invested Under My Future Fund?

NAERSA will oversee investment management, with major Irish pension providers likely managing the funds. 

Most people will start in a default fund that invests in higher-risk options when they're younger, then gradually shift to safer investments as they near retirement. Employees can choose their own funds too.  

3. Where Can I Find More Information About My Future Fund?

Stakeholders can refer to our comprehensive

You can also contact the Department of Social Protection at autoenrolment@welfare.ie with any questions about My Future Fund or Auto Enrolment.

My Future Fund: Ireland's New Auto Enrolment Pension Explained

We're excited to be launching embedded health insurance with leading Global HR platform,

. From today, Remote Payroll customers will be able to provide health cover for their employees in multiple countries, all from inside the Remote platform. 

The technology required for this product did not exist, so we built it. What we’re releasing today is a first-of-its-kind product that will eliminate the headache involved in rewarding employees across geographies—much like Remote has already done for employment and payroll.

Let's reimagine what access to employee benefits can look like

From early conversations with Remote co-founders Job and Marcelo, along with Iarla (COO), and Francesco (VP of Ops), it quickly became apparent that we share a similar view of the world. The way we work has changed significantly. Thanks to Remote and companies like them, work is increasingly online and untethered by geographic constraints - helping to distribute opportunity more evenly around the globe. 

Yet, employee benefits, which form a key pillar of employment, remain offline and mired in complexity.  What should be a simple task of getting quality local health coverage for your team involves going country-to-country through different carriers, opaque broker processes, endless administration, and complex tax liabilities for employers and employees. This ultimately creates cost – for employers who need to invest time and money in understanding, setting up, and administering local benefits, and for employees who either aren't covered or don't understand what they're covered for.

In 2024, this is simply not good enough. Business processes that have already been touched by software - payroll, payments, project management, the list goes on - have seen dramatic improvements in customer experience. With Kota, we’re bringing employee benefits up to that standard. 

Building the Internet infrastructure for employee benefits

We set out to bring the old-school benefits world into the digital age. The reality of executing this mission is a much more complex task. We're building global financial infrastructure from the ground up to serve modern companies. To do that, we create the regulatory rails to operate across regions, the relationships and trust with our insurer partners to offer the best products to customers, the technology to price plans, bind cover, issue policies and renewals carriers across multiple countries, in seconds. All of this comes together with a delightful user experience localised to the customer's country to make it compliant, clear and easy to understand. 

Partnering with Remote to Power Remote Benefits

We founded Kota to make benefits more accessible, affordable, and global for the modern workforce. Partnering with Remote on this launch is a huge milestone in this journey. This partnership will give companies on Remote the superpower to create unfound HR and Finance efficiencies that are an order of magnitude ahead of the market standard, and we're only getting started. Working with Remote has been so natural, given our aligned vision and culture. We're both building global financial infrastructure for a new era of companies through delightful product experiences and with a compliance-first approach.

Remote customers can now set up health insurance for their teams directly within Remote Payroll in a fraction of the time. Simply select one of our trusted local health insurance partners, learn about the coverage options that could meet your needs, and explore options for your family members. Our integrations with local providers give Remote customers seamless access to quotes and coverage, and the ability to adjust their plan options over time, all without leaving the platform.

Each month, payroll deductions and any necessary tax adjustments are automatically handled within Remote, ensuring compliance without manual effort. Employees can also manage their policies directly in their Remote dashboard, making the entire experience smooth and accessible for everyone involved.

By combining Remote's global employment infrastructure and our insurer network, we're setting a new standard in the industry for what's possible.

 to see the product in action on December 11th at 4pm! 

Remote.com Embeds Health Insurance Cover Powered by Kota

Remote Embeds Health Insurance Cover powered by Kota

If you’re a startup founder or HR professional in Ireland, offering a competitive benefits package is crucial to attract and retain top talent.

Curious about what benefits you can offer as an Irish startup — and how they contribute to building a strong team?

Why Should Your Startup Offer Employee Benefits in Ireland?

Although offering benefits may seem like an added cost, it can save you money in the long run by helping you:

What Employee Benefits Should Your Startup Offer in Ireland?

As an Irish startup owner, you can offer two types of benefits to your employees:

If you run a startup, these are the government-mandated benefits you’re legally required to provide to your employees. 

1. Personal Retirement Savings Account (PRSA)

 that allows your employees to save for retirement independently of the pension scheme you offer.

 or make your employees wait more than six months to join one, you must provide them access to at least one standard PRSA.

You must give them this access within six months of their start date. However, you’re not required to contribute to their PRSA.

2. Pay Related Social Insurance Contributions (PRSI)

PRSI is a mandatory contribution paid by you and your employees. 

These contributions go into the Social Insurance Fund (SIF), which helps the government pay for social welfare benefits and pensions.

You’re responsible for deducting PRSI from your employees' paychecks and making contributions based on their salary.

Statutory sick pay is the mandated minimum pay you must provide, at 70% of your employee’s normal weekly wage, up to a maximum of €110 per day.

In 2025, employees have the right to 7 days of sick leave per year. This sick leave entitlement will increase to 10 days in 2026.

As per the Organisation of Working Time Act 1997, all your employees, including full-time, part-time, temporary, and casual workers, are entitled to paid time off work.

Parental leave (paid or unpaid, as specified by your employee’s employment contract) provides time off for new parents. 

Your employees can use it for childcare, bonding with a new child, or managing pregnancy-related problems.

You can offer these additional benefits on top of your employees’ regular pay to support their health and financial well-being. 

Private health insurance provides your employees faster access to healthcare services, covering various medical expenses from routine check-ups to major surgeries.

You typically pay part or all of your employee’s health insurance premium while your employees cover the remaining costs through payroll deductions.

Want to offer affordable group health insurance to your Irish employees?

 that covers inpatient, outpatient and, depending on your plan selection, day-to-day costs. 

With Kota, you can scale your benefits as needed, give employees control over their health plans, and seamlessly sync your HR and payroll tools to reduce admin costs.

Occupational pension schemes are retirement plans you set up to provide your employees with additional income upon retirement. 

You and your employees contribute a percentage of your earnings to the pension fund, which is invested in shares or stocks to prevent its value from getting reduced due to inflation. Employee contributions are optional, depending on the scheme's structure.

The Irish government plans to introduce the Auto Enrolment Pension Scheme on September 30, 2025. Under this scheme, you’re required to match your employee’s contributions (1.5% for the first three years), with the government adding an additional amount.

 to learn how it affects your startup and team — and whether an occupational pension scheme could be more suitable for your business.

Looking to set up occupational pensions for your Irish team?

 without any paperwork and administrative overheads. 

Easily enrol your employees in industry-recognised retirement plans via Irish Life and meet future auto-enrollment requirements by:

 and empower your team with our digital pension app!

Life Assurance covers your employees for as long as they are in employment, providing peace of mind that their loved ones will be financially secure if they die unexpectedly.

As their employer, you pay the premium for your employees, and upon their death, a lump sum (typically 2x or 4x their salary) gets paid to the employee’s beneficiaries.

 and easily access life assurance for your entire team! 

Unlike life assurance, which covers your employees for life, life insurance provides a lump sum to your employee’s beneficiaries if the employee dies within a specified period or “term”.

You typically pay the entire premium and cover all your employees under a single master policy.

Tech startups and companies in Ireland often provide stock options in their benefits packages. 

You can further enhance your benefits package by offering various additional perks and incentives, such as:

How Can Irish Startups Offer a Comprehensive Employee Benefits Package?

Keep these factors in mind when you’re designing an employee benefits program:

When creating a benefits plan, be realistic about your financial limitations. 

In the early stages, start by offering mandatory benefits and allocating remaining funds for optional ones. As cash flow improves, you can gradually expand your offerings.

Offering work-life balance perks like paid time off (PTO), 

, and remote working shows that you care about your employees’ well-being. 

This helps startups attract the best employees even if they don't offer the highest salaries.

3. Partner with Employee Benefits Management Platforms 

 is a powerful digital benefits platform that’s:

 can offer and manage an array of benefits:

 feature lets you add extra benefits, from employee well-being to learning and professional development programs. 

This way, you can manage all benefits from a single digital platform.

and manage your startup’s employee benefits effortlessly. 

2 FAQs on Startup Employee Benefits in Ireland

We’ll answer two commonly asked questions you may have about employee benefits for startups:

11 Employee Benefits Your Irish Startup Should Offer and Why

A solid employee benefits package can be your secret weapon to attract top talent.

While providing certain benefits is mandatory, supplementary perks, like private health insurance, can set you apart from competitors.

Let’s explore six essential employee benefits for small businesses and outline best practices to create an effective package.

Auto Enrolment Pension Ireland: 2025 Guide

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