An employer benefits package includes benefits and perks offered beyond salary, such as health insurance, paid leave, and pensions.

And how can you design one that works for both your employees and your business?

Read on to explore their importance, the key benefits to include, and how to build an employer benefits package that fits your needs.

An employer benefits package is a set of 

 that supplement an employee’s salary. These benefits can be tailored based on job roles, company policies, and industry standards to support employee well-being.

To determine the right approach, consider your company size, budget, and workforce preferences. 

(We discuss this in detail in the section on creating a benefit package.)

A well-rounded benefits package should provide essential benefits while allowing room for customization where possible.

An employee benefits package isn’t just ‘good to have’ — it’s a strategic investment in your business. Here’s why:

Most job seekers look beyond salary when evaluating job offers. 

That’s why a competitive benefits package — including health coverage, pension plans, and flexible work options — can give your company an edge in a crowded hiring market.  

 found that 91% of employees would consider changing jobs to gain access to the financial benefits they need. 

A strong benefits offering also enhances your employer brand, positioning your company as “the place to work” for top talent. 

Employers that prioritise employee well-being often see higher application rates, stronger referrals, and overall lower recruitment costs.

 are more likely to stay with an employer that offers a well-structured benefits package.

Providing perks like career development opportunities, financial well-being incentives, and work-life balance policies boosts employee retention. 

According to Gallup, replacing an employee can cost 

one and a half to two times their annual salary

. These costs go beyond recruitment and onboarding; turnover can disrupt team morale, reduce productivity, and even weaken client relationships.

A well-structured benefits package helps prevent these costly disruptions. 

As mentioned earlier, offering competitive benefits can improve retention, engagement, and productivity — all of which directly impact your bottom line. 

Beyond employee attrition, there is another cost that employee benefits help to bring down — your tax liability.

Benefits like pension contributions, health insurance, and salary sacrifice schemes offer tax efficiencies that reduce overall employment costs. 

For example, in Ireland, employer pension contributions are tax-deductible, reducing corporate tax liability by 12.5%. In the UK, they are a deductible business expense, potentially reducing corporate tax liability by up to 25%, depending on the tax rate.

Employees who feel supported - whether through career growth programs, wellness initiatives, or flexible work arrangements - are more engaged and motivated.

This results in higher productivity and better business outcomes.

A Gallup study found that companies with high employee engagement had 

, showing how an engaged workforce can yield better business results.

Which Benefits Should You Include in Your Employer Benefits Package?

Generally, employee benefits fall into two categories:

Discover how top European startups and scaleups structure their benefits in 

The State of Benefits in European Tech 2024

A strong benefits package typically combines both mandatory and supplementary benefits, covering these key categories:

Offering health and well-being benefit packages helps your employees stay physically and mentally healthy — ensuring a happier, more productive workforce. Some common employee benefits are:

Monetary benefits give your employees the financial security and motivation to stay with your company. Popular financial employee benefits include:

3. Professional and Personal Development Benefits

Career growth opportunities help employees expand their skills and progress within the company. Common employee benefits include:

Work-life balance policies help employees manage their professional and personal responsibilities, reducing stress and increasing job satisfaction. Popular work-life benefits include:

While optional, offering extra employee perks can create a more enjoyable and engaging work environment. These perks boost employee morale and job satisfaction. 

How to Create an Attractive Employer Benefits Package for Your Team

Follow these five steps to design a workplace benefits package that meets both business needs and employee expectations:

Looking for an all-in-one platform to offer, manage, and scale employee benefits in Ireland and the UK? 

Simplify Employee Benefits Management With Kota

Kota is a modern employee benefits platform that makes it easy to set up a compliant, cost-efficient benefits package while reducing admin work. 

With a seamless onboarding process, trusted provider coverage, HRIS sync, and built-in compliance for Ireland and the UK, Kota ensures your team gets the benefits they need — without the hassle.

 feature, you can easily add additional benefits — like well-being benefit programs or transport allowances — alongside core offerings, all in one platform.

 to give your team the support and flexibility they deserve.

We’ll answer some questions about employer benefits packages:

1. What Factors Affect the Cost of Employer Benefits Packages?

Several factors impact the cost of your benefits package:

2. How to Measure the ROI of Your Employer Benefits Package?

To measure the return on investment (ROI) of your employee benefits package, monitor these four key metrics:

3. Can You Offer Different Benefits Packages to Different Employees?

Yes! Employees have different priorities based on their life stage and personal situation. As a result, companies offer customisable or flexible benefits to meet the needs of their workforce. 

4. How Often Should You Review and Update Your Employee Benefits Package?

A full package review every 2–3 years helps maintain competitiveness, control costs, and ensure compliance. However, you may need annual or semi-annual updates based on:

Regularly refining your benefits package ensures it stays relevant and valuable to your employees.

Support Your Workforce with Comprehensive Benefits 

What Are Employer Benefits Packages & How to Offer Them?

Occupational pension schemes and Auto Enrolment are two distinct approaches to retirement savings in Ireland. 

With Auto Enrolment set to launch in September 2025, employers and employees must understand how it compares to traditional occupational pension schemes.

We’ll compare them in detail to help you determine the right option for your needs.

Occupational Pension vs Auto Enrolment in Ireland

Let’s first understand what occupational pensions and Auto Enrolment mean for businesses and employees in Ireland.

What Is the Auto Enrolment Pension Scheme?

 is a new retirement savings system aiming to expand Ireland's pension coverage. 

Starting in September 2025, Irish employers will be required to automatically enrol employees aged between 23 and 60 who earn over €20,000 annually, ensuring broad participation in the retirement savings scheme.

 (aka a company pension scheme) is an employer-established retirement pension plan designed to provide employees with benefits upon retirement. 

These schemes are typically flexible, allowing employers to determine their contribution rates and investment options and offering features like 

Additional Voluntary Contributions (AVCs)

For employers to be exempt from Auto Enrolment, their occupational pension scheme must meet certain basic criteria — such as having employer contributions (even if minimal) and covering eligible employees.

9 Key Differences Between Irish Auto Enrolment & Occupational Pension Schemes

5. Provisions for Additional Voluntary Contributions (AVCs)

Occupational Pension or Auto Enrolment Ireland: Which Is Better?

Like any significant change, automatic enrolment in Ireland comes with its share of pros and challenges. 

Need more flexibility and control over retirement savings?

Occupational pensions may be the better choice for your business and team. 

Why an Occupational Pension May Be a Better Choice For Your Business

Set Up Your Occupational Pension Scheme in Minutes with Kota

provides easy and efficient solutions to set up your 

Our platform is designed to simplify the process, offering tailored options for contributions, tax relief, and investments.

With Kota, employers have the flexibility to create pension arrangements that work for their teams. 

3 FAQs About Occupational Pension & Auto Enrolment in Ireland

We’ll answer some common questions about these pension options:

1. Will the Auto Enrolment Scheme Replace the State, Occupational and Personal Pensions?

No, the Auto Enrolment scheme is designed to supplement the State Pension and won’t replace the existing pension schemes. 

Employers who provide a company pension scheme are exempt from AE requirements.

 like personal retirement savings accounts (PRSA) through their payroll won’t be auto enrolled into the AE scheme. 

2. Can Employees Participate in Both Occupational and Auto Enrolment Pension Schemes? 

No, if an employee is part of an occupational pension plan, they’re exempt from automatic enrolment and cannot participate in both for the same employment.

3. Is It Better for Employers to Offer Occupational Pensions or Rely on Auto Enrolment? 

Occupational pension arrangements provide more flexibility, higher contributions, and greater income tax advantages, making them a superior option for employers who want to provide competitive retirement benefits.

Making the Right Choice: Occupational Pension vs Auto Enrolment Ireland

Choosing between an Auto Enrolment retirement savings system and an occupational pension scheme is a significant decision for employers. 

While the Auto Enrolment system takes a standardised approach to pension savings, occupational pensions go beyond — offering higher contributions, tax advantages, and tailored investment options that boost employee satisfaction and retention.

To make the right choice for your business, consult a financial advisor or 

Occupational Pension vs Auto Enrolment Ireland: Which Is Right for You?

Ireland’s Auto Enrolment (AE) pension scheme is set to launch on September 30, 2025. 

It aims to increase retirement savings participation among the 750,000 workers, particularly private sector employees, who lack pension coverage beyond the State Pension.  

Employers should start preparing now to meet compliance requirements, streamline processes, and avoid penalties.

Wondering how to prepare for Auto Enrolment in Ireland?

We’ve got you covered with the basics and key steps to ensure a smooth transition for your business.

Preparing for Auto Enrolment Ireland: What Employers Need to Know

The Automatic Enrolment Retirement Savings System Act was passed in 2024, paving the way for the introduction of 

For the first time, Irish employers will be legally obliged to contribute to a pension (the Auto Enrolment scheme) on behalf of their employees. 

Similarly, employees must contribute for set periods before they can opt out.

Here are some key details employers must be aware of to prepare for the Auto Enrolment pension scheme: 

2. What Are the Employer and Employee Contributions?

3. Can Employees Opt Out of Auto Enrolment? 

4. Who Will Oversee the Auto Enrolment Scheme and How? 

5. What Is the Impact on Existing Occupational Pension Schemes?

Auto Enrolment Checklist for Employers in Ireland

To comply with the requirements of the new scheme, employers should check off the following 10 HR-related tasks:

In addition to these, employers have defined responsibilities to ensure Auto Enrolment compliance.

What Are the Employer’s Responsibilities for Auto Enrolment in Ireland?

In Ireland's Auto Enrolment scheme, employers are responsible for:

How Much Can Auto Enrolment Cost Irish Employers?

The Auto Enrolment scheme comes with various costs which Irish employers may need to consider, including: 

Why Occupational Pensions May Be a Better Option

Assumes a single individual taxpayer with no additional tax credits or band allocations. Figures are for illustrative purposes to highlight the differences between top-up and tax relief.

With Kota, employers have the flexibility to create pension arrangements that work for their teams.

Let’s answer some common questions employers may have about the Auto Enrolment pension:

1. Who Is Exempt from the Auto Enrolment Scheme in Ireland? 

Employers who already offer a qualifying occupational pension arrangement and contribute on behalf of their employees are exempt from Auto Enrolment.

2. Do Small Businesses Need to Comply with Auto Enrolment? 

Yes, all Irish employers must comply, regardless of business size.

3. Are Employees Contributing to Personal Pension Plans Eligible for Auto Enrolment?

 contributions do not exempt employees from AE unless facilitated through payroll.

4. Do Employers Still Need to Provide Employees Access to a PRSA?

Ireland’s Automatic Enrolment Retirement Savings System Act 2024 doesn’t affect existing pension schemes or legislation. 

This means you still have an obligation to provide your employees with access to a Personal Retirement Savings Account (PRSA) if they wish to avail of it.

5. How Are Auto Enrolment Contributions Calculated? 

Contributions are based on gross earnings, starting at 1.5% and increasing over time.

6. How Will Employer and Employee Contributions Be Collected and Paid?

Contributions will be processed via payroll and transferred to the designated Auto Enrolment provider.

Empower Your Employees: Get Auto Enrolment Ready

The introduction of Auto Enrolment in 2025 has prompted companies to reconsider their approach to employee benefits and pension savings — whether through the Auto Enrolment scheme or existing occupational pension schemes. 

While this retirement savings scheme may increase workloads and responsibilities for business owners, HR teams, and finance departments, its long-term benefits are undeniable.

By starting preparations early, employers can ensure a smooth transition, stay ahead of compliance, and give themselves the flexibility to budget and adapt. 

Most importantly, you’re investing in your most valuable asset—your people—by helping them build a secure and comfortable retirement.

How to Prepare for Auto Enrolment Ireland: Employer Guide

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:

What Are Employer Benefits Packages & How to Offer Them?

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