Auto-Enrolment Ireland 2026: What Every Employer Must Do Now

What Is Auto-Enrolment in Ireland?

Auto-enrolment in Ireland is a government-mandated retirement savings system that automatically places eligible employees into a workplace pension scheme without requiring them to apply. The scheme operates under the brand name My Future Fund and is governed by the Automatic Enrolment Retirement Savings System Act 2024.

Before January 2026, Ireland was the only OECD country without a mandatory auto-enrolment pension system. Approximately 760,000 workers had no workplace pension arrangement. My Future Fund was introduced by the Department of Social Protection to address this gap and reduce long-term dependence on the State Pension.

The scheme is administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA), a newly established public body responsible for managing contributions, overseeing compliance, and appointing investment managers on behalf of enrolled employees.

Who Must Be Enrolled? Eligibility Criteria

An employee must be automatically enrolled into My Future Fund if they meet all three of the following conditions simultaneously:

• They are aged between 23 and 60
• They earn €20,000 or more per year (NAERSA uses a rolling 13-week lookback period; if gross earnings reach €5,000 in that window, the employee qualifies)
• They are not currently paying into a qualifying pension scheme through payroll

Employees who do not meet these age or income thresholds are not automatically enrolled. However, any employee aged over 18 and under 66 who is not in a qualifying pension scheme may voluntarily opt in through the MyFutureFund portal.

Employees already paying into an occupational pension scheme or a Personal Retirement Savings Account (PRSA) through payroll are exempt. NAERSA uses Revenue Online Services (ROS) payroll data directly to identify and enrol eligible employees, which means the initial identification process is largely automated.

If you are unsure which of your staff qualify or how auto-enrolment interacts with your existing pension arrangements, our payroll services team can review your workforce and obligations.

My Future Fund Contribution Rates: The Full 10-Year Schedule

Contributions under My Future Fund are shared between three parties: the employee, the employer, and the State. The rates are phased in gradually over ten years to give businesses time to absorb the rising cost.

All percentages are applied to gross salary. Employer and State contributions are capped at an annual salary of €80,000. For example, if an employee earns €100,000, employer contributions are only calculated on the first €80,000 — the remaining €20,000 receives no employer or State top-up, though the employee may still contribute on their full salary.

For a concrete illustration: an employee earning €40,000 per year in 2026 generates an employer contribution of €600 (1.5% of €40,000). By Year 10, the same employee at the same salary generates an employer contribution of €2,400 annually.

This gradual increase makes early budgeting essential. Businesses need to factor these rising costs into salary planning, financial forecasting, and annual accounts. Our bookkeeping service can help you track these costs accurately from the outset.

The State Top-Up: How It Works

The My Future Fund contribution model differs from a traditional pension tax relief structure. Rather than offering income tax relief at the marginal rate (which benefits higher earners most), the State contributes a flat top-up.

For every €3 an employee contributes, the State adds €1. In practice, this means an employee who puts in €3 ends up with €7 in their pension account when employer and State contributions are added. This structure effectively provides a 25% top-up regardless of the employee’s tax rate — making it proportionally more valuable for standard-rate taxpayers and lower earners.

Importantly, employee contributions are taken from net pay, not gross pay. This is a key distinction from occupational pensions where contributions are deducted before tax. Employees in My Future Fund do not receive income tax relief; the State top-up is the equivalent mechanism.

Your Step-by-Step Employer Obligations

Every employer in Ireland, regardless of size, has legal obligations under the Automatic Enrolment Retirement Savings System Act 2024. The steps are as follows:

Step 1: Register on the MyFutureFund Employer Portal Employers access the portal at myfuturefund.ie using their existing Revenue Online Services (ROS) credentials. Registration involves confirming business details, contact information, and a preferred payment method — either direct debit or card. There is no registration deadline grace period; contributions became due from the first payroll run of January 2026 regardless of whether registration was completed. Failing to register does not delay the obligation — it simply causes contributions to accumulate as a legal debt.

Step 2: Identify Eligible Employees While NAERSA uses Revenue payroll data to identify and enrol employees, employers are responsible for ensuring their payroll data held with Revenue is accurate. Any discrepancies in age, salary, or pension status recorded with Revenue will affect which employees NAERSA identifies as eligible.

Step 3: Update Payroll Software Most major Irish payroll software providers — including BrightPay, Thesaurus Payroll, and Big Red Cloud — released updated 2026 versions with full My Future Fund functionality before the January launch. These updates enable automatic calculation of contributions, employee notification generation, and direct submission of contribution data to NAERSA.

Step 4: Calculate and Submit Contributions Contributions are deducted from each payroll run and submitted to NAERSA. The submission is processed alongside normal payroll. NAERSA then allocates the contributions to individual employee accounts within 10 working days of the payday.

Step 5: Notify Enrolled Employees Employers are legally obliged to inform each employee when they are first enrolled in My Future Fund. NAERSA provides standard notification templates through the employer portal.

How the €80,000 Earnings Cap Works in Practice

The earnings cap means that for any employee earning more than €80,000 per year, employer and State contributions stop once gross earnings reach that threshold. The employee themselves may continue contributing above €80,000, but those contributions receive no employer match and no State top-up.

For payroll purposes, this requires careful month-by-month monitoring of cumulative gross earnings. Once an employee’s earnings cross the €80,000 threshold during the year, employer contributions for that employee cease for the remainder of that tax year.

This is particularly relevant for salaried senior employees, company directors on payroll, and commission-based staff whose earnings may fluctuate. Managing payroll correctly for directors requires specific expertise — read our guide to tax for company directors.

Employee Opt-Out and Suspension: What Employers Need to Know

Employees cannot opt out immediately upon enrolment. The scheme requires a minimum six-month participation period before any action is possible.

Opt-out window: After the initial six months, employees have a two-month window (months 7 and 8) in which they can opt out and receive a full refund of their own contributions. Employer and State contributions made during that period are not refunded to the employee — they remain invested in the fund.

Contribution suspension: After the first six months, employees may also choose to suspend contributions for up to two years. During a suspension period, employer and State contributions also stop. After the suspension ends, the employee is automatically re-enrolled.

Re-enrolment after rate changes: When the contribution rate increases (which occurs every three years), employees who were previously enrolled again have a two-month opt-out window. They may receive a refund of the increase in contributions paid during that window, but not the base contributions.

Employers have no role in processing opt-outs or suspensions — these are managed directly by employees through their MyFutureFund portal account. However, employers are legally prohibited from encouraging, pressuring, or facilitating employees to opt out. Any such action is an offence under the 2024 Act and can result in prosecution by the Workplace Relations Commission (WRC).

Penalties for Non-Compliance

NAERSA has broad enforcement powers under the Automatic Enrolment Retirement Savings System Act 2024. Penalties apply in the following situations:

• Failure to register with the MyFutureFund portal
• Failure to pay contributions on time or in full
• Underpaying contributions, whether by incorrect calculation or deliberate underreporting
• Impeding employees from joining, or pressuring them to opt out

Unpaid contributions attract interest charges in addition to the base amount owed. In serious cases, NAERSA may pursue prosecution. Convicted employers will be listed on a public register of non-compliant employers published by NAERSA — a significant reputational consequence.

Late registration does not absolve liability. Contributions are owed from the first payroll of January 2026, and any employer who registered late will be required to make back-payments for all periods since that date, including accumulated interest.

Keeping your payroll compliant and your accounts accurate is the most effective way to avoid any enforcement action. Our annual accounts and CT returns service ensures all payroll and employment tax obligations are recorded and reported correctly to Revenue.

Auto-Enrolment vs Your Existing Occupational Pension Scheme

Employers who already operate a qualifying occupational pension scheme or group PRSA have options when it comes to My Future Fund:

Option 1 — Single Scheme: If all employees are already paying into a qualifying occupational scheme through payroll, those employees are exempt from My Future Fund. The employer runs only one pension arrangement.

Option 2 — Dual Scheme: Employees with an existing occupational pension remain in that scheme. Employees with no pension are enrolled in My Future Fund. The employer manages both simultaneously.

Option 3 — Migrate All to My Future Fund: An employer may choose to close their existing occupational pension scheme and move all employees to My Future Fund. This requires careful legal and financial advice before proceeding.

From January 2026, a minimum total contribution of 3.5% of gross pay — with at least 1.5% from the employer — applies to all pension arrangements. This minimum applies from the first day of employment, including probationary periods. Employers who previously offered reduced contributions during probation must now meet this threshold from day one.

Employers with complex non-contributory defined benefit (DB) schemes should apply to NAERSA for a formal exemption review.

What Company Directors Need to Know

Auto-enrolment applies to employees in the legal sense — individuals paid through PAYE payroll. A company director who receives a regular PAYE salary and pays Class A PRSI is treated as an employee for My Future Fund purposes and must be enrolled if they meet the eligibility criteria.

A director who takes income solely through dividends, without a formal salary through payroll, is not an employee for auto-enrolment purposes and is therefore not automatically enrolled. Such directors will need separate retirement planning arrangements.

Self-employed sole traders are not covered by My Future Fund. The difference between operating as a sole trader versus a limited company has significant implications for retirement planning and tax  this is worth reviewing with a qualified accountant.

Budgeting for Rising Contribution Costs

The phased contribution schedule gives employers a predictable cost increase every three years. For financial planning purposes, a business with ten employees each earning €40,000 per year faces the following employer contribution increases:

• 2026 (Year 1): 10 × €600 = €6,000 per year
• 2029 (Year 4): 10 × €1,200 = €12,000 per year
• 2032 (Year 7): 10 × €1,800 = €18,000 per year
• 2035 (Year 10): 10 × €2,400 = €24,000 per year

These costs are an employment expense and are deductible against corporation tax or income tax, which partially offsets the impact. Proper management accounting and cash flow forecasting from the start of 2026 will help businesses absorb these increases without disruption.

If you are starting a new business and need to understand all your employer obligations from the outset, our startup accounting service covers payroll setup, PAYE registration, and My Future Fund compliance.

Frequently Asked Questions About Auto-Enrolment Ireland 2026

Q1: Does auto-enrolment apply to part-time employees? Yes, if a part-time employee earns €20,000 or more per year across all employments and meets the age criteria of 23 to 60, they are eligible for auto-enrolment. NAERSA uses Revenue payroll data across all PAYE employments to assess gross annual earnings.

Q2: What happens if an employee already has a personal pension not connected to payroll? A personal pension (such as a self-funded PRSA or a retirement annuity contract) that is not paid through payroll does not exempt an employee from auto-enrolment. Only pension contributions paid through payroll count as a qualifying arrangement for exemption purposes.

Q3: Can an employer deduct My Future Fund contributions as a business expense? Yes. Employer contributions to My Future Fund are treated as a deductible employment expense for corporation tax or income tax purposes. They reduce taxable profit in the same way as salary costs. For accurate reporting, these should be recorded correctly in your bookkeeping records from the first payroll of 2026.

Q4: What if I use a payroll agent or accountant to manage my PAYE? Employers who use an agent for Revenue payroll filings can authorise that same agent to access the MyFutureFund employer portal. The agent can register the employer, submit contribution data, and manage the account on the employer’s behalf using their existing ROS agent credentials.

Q5: Is there a minimum wage threshold that affects My Future Fund contributions? Contributions are calculated on gross salary, not on any minimum wage threshold. However, as the National Minimum Wage in Ireland for 2026 is €14.15 per hour, a full-time minimum wage employee working 40 hours per week for 52 weeks earns approximately €29,432 per year — well above the €20,000 auto-enrolment income threshold. Most full-time employees on or above minimum wage will therefore be eligible.

What to Do Now

Auto-enrolment is already live. If your business has not registered on the MyFutureFund employer portal, contributions are accruing as a legal debt from January 2026. The steps required are:

1. Log in to myfuturefund.ie using your ROS credentials
2. Complete your employer profile and set up a payment method
3. Update your payroll software to the 2026 version with My Future Fund functionality
4. Review all employees for eligibility and confirm your existing pension arrangements
5. Notify enrolled employees and ensure HR processes reflect the opt-out rules

If you need assistance reviewing your payroll setup, identifying eligible employees, or ensuring your accounts correctly capture employer contribution costs, Fuchsia Bell’s payroll and accounting team can help.

For a broader overview of your business tax and compliance obligations in 2026, speak to our chartered accountants about a free business review.