Auto-enrolment pensions in Ireland

After a slight delay, Ireland’s auto-enrolment pension scheme launched on 1 January 2026. Under this new initiative, certain employees will be automatically enrolled into a retirement savings scheme.

Discover whether you qualify, how contributions work, and how both employees and employers can participate in automatic pension enrolment.

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Ireland’s new pension scheme is a savings system designed to help those in employment save for retirement. Eligible workers will be automatically enrolled in a pension plan and contributions will be made by the employee, their employer, and the Government.

The idea behind the scheme is to close Ireland’s retirement savings gap. Around a third of workers have no pension coverage other than the State Pension*, meaning they may need extra savings to maintain their desired retirement lifestyle. The Department of Social Protection estimates that more than 750,000 workers will be signed up to the auto-enrolment pension.

Key facts at a glance:

• Start date: 1 January 2026.

• Who it’s for: Employees who are aged 23 – 60, earning over €20,000 per year, and not actively paying into a pension through payroll.

• Employer’s role: Automatically enrols eligible staff and matches contributions.

• Government support: Provides a top-up through My Future Fund.

• Opting out: Employees can stop contributions at certain times.

• Investment choices: Payments are made into a default investment fund, but three risk-based options are available.

Yes, pension auto-enrolment was due to launch in September 2025. After being rescheduled, contributions began on 1 January 2026. This gave employers and payroll providers more time to prepare, and means that the scheme is now in alignment with the Irish tax year.

Auto-enrolment in Ireland works on a contribution-matching basis to incentivise workers to build up their pension pot. What this means is that the pension receives payments from the employee, employer, and the Government. Contributions are based on a fixed percentage of salary and are deducted directly through payroll. Fees apply. Gov.ie currently states an administration fee of €0.55 per week (capped at €28.60 per year) and an investment management charge of 0.03833% of assets under management (AUM).

Those joining the scheme will be placed on a default investment strategy. This is adjusted based on the individual’s age, shifting to more conservative investments as retirement approaches. 

They can choose to switch to one of three other strategies with varying risk levels:

• Low risk: Cautious, low-risk approach designed to protect the fund’s value

• Medium risk: Balanced, moderate-risk approach that aims to steadily grow the fund

• High risk: By taking on more risk, this strategy targets higher growth

Contributions to the auto-enrolment pension gradually increase over time, and are calculated as a percentage of your gross pay. 

• Employee contribution: Starts at 1.5%, rising to 6% after 10 years.

• Employer contribution: Matches the employee contribution.

• Government top-up: One-third of the employee contribution, reaching 2% after 10 years.

Here’s an example of how this will look for someone with a salary of €40,000:

Source for contribution rates: https://data.oireachtas.ie/ie/oireachtas/act/2024/20/eng/enacted/a2024.pdf

Contributions to an auto-enrolled pension are calculated on salaries of up to €80,000. If you earn more than this, you will only pay contributions on the initial €80,000.

These rates refer to the auto-enrolment pension in its first years of operation. The amount you end up with in your pension pot can also include potential returns generated from investments.

You’ll be automatically enrolled into the new pension scheme in Ireland if you meet all of the following criteria:

• Aged between 23 and 60

• Not already paying into any pension through payroll

• Earning over €20,000 a year (the total across all jobs you hold)

The National Automatic Enrolment Retirement Savings Authority (NAERSA), which is the body set up to manage the new scheme, will use payroll records to check eligibility. If you already contribute to a supplementary pension, such as a personal retirement savings account (PRSA) or an occupational pension, that employment will be exempt from auto-enrolment. However, if you have another job where you don’t already pay into a pension through payroll, you can be auto‑enrolled or choose to join the scheme for that job.

If you earn less than €20,000, or you fall outside the specified age range, you can still choose to opt in if you don’t already pay into a company pension scheme. Self-employed people are excluded from the initial auto-enrolment pension, and they cannot opt in, so they might choose to contribute to a private pension instead.

The auto-enrolment pension scheme in Ireland works on an opt-out rather than an opt-in basis, as the State wants to encourage participation. However, it is not a mandatory pension in Ireland, and if you’re already enrolled, there are three ways you can opt out.

You can withdraw from the auto-enrolment pension in months seven and eight, or any time the contribution rates increase during the initial 10-year period. If you choose to opt out in either of these ways, any contributions you’ve made yourself will be refunded, while your employer’s and the state’s contributions will stay in your savings pot and continue to be invested.

If you’re having trouble coping with the loss of immediate income, you can also choose to suspend your contributions to the auto-enrolment pension, although this amount won’t be refunded. If you decide to leave the scheme, you can rejoin at any time after leaving. Keep in mind that if you opt out, and you’re still eligible two years after that, you’ll be automatically re-enrolled.

It’s important to note that every eligible employee, whether new or existing, will be automatically enrolled in the scheme, regardless of their work or employment status. Your employer will take care of your enrolment, regardless of whether you work full-time, part-time, are in your probationary period, or casual employment. As long as you’re not already enrolled in another pension plan and meet the automatic enrolment criteria, the scheme will apply to you.

Yes, the auto-enrolment pension scheme in Ireland works on an opt-out rather than an opt-in basis, as the State wants to encourage participation. If you’re already enrolled, you have two main windows of time when you can opt out:

1. In months seven and eight after enrolment. With this option, your contributions are fully refunded.

2. After a contribution rate increase, you can opt out during months seven and eight after the increase. This is only available within the initial 10-year period. You are refunded the difference between the new and previous rate.

If you choose to opt out in either of these ways, your employer’s and the State’s contributions will stay in your savings pot and are available at retirement age (66).

You can also choose to suspend your contributions to the auto-enrolment pension for one to two years, although this amount won’t be refunded. If you decide to leave the scheme, you can rejoin at any time after leaving. Keep in mind that if you opt out, and you’re still eligible two years after that, you’ll be automatically re-enrolled.

You don’t have to do anything if you change jobs, as the auto-enrolment pension in Ireland is structured to remain linked to your individual account, even if you change employers. This means that you can take the savings you’ve accumulated in previous jobs to any new job. The funds stay in your personal pension pot and continue to be invested until retirement.

If you have more than one job, your total earnings across all jobs where you’re not already contributing to a pension through payroll will determine if you qualify for auto-enrolment. Every eligible employment is included in your pension scheme.

If you have any other questions related to auto-enrolment in Ireland and your own financial circumstances, you can contact the Department of Social Protection by emailing autoenrolment@welfare.ie.

Automatic enrolment for pensions has already been adopted in countries like the UK, Australia, Sweden, and Denmark, and the new Irish scheme has been designed to draw on what has worked particularly well in these countries while avoiding some of the pitfalls.

When compared with private pension options such as a PRSA or occupational scheme, the main difference is that these options tend to offer extra tax relief and higher contribution limits.

Investment funds carry different levels of risk. The value of your pension may go down as well as up.

More information on the role of the employer can be found on the Government website.

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*https://www.cso.ie/en/releasesandpublications/ep/p-pens/pensioncoverage2024/keyfindings/