Pension auto-enrolment started in Ireland on 1 January 2026. The scheme is called MyFutureFund and it is run by the National Automatic Enrolment Retirement Savings Authority (NAERSA), under the supervision of the Pensions Authority. Employees who meet the conditions are enrolled automatically through payroll, and their employer must contribute alongside them. This guide explains who is enrolled, the contribution rates, what employers must do in payroll and what happens if an employee opts out.
Who Is Automatically Enrolled
An employee is enrolled in MyFutureFund when all of these apply:
- aged 23 to 60;
- earning €20,000 or more a year from that employment;
- not paying into a workplace or private pension through payroll in that employment.
Eligibility is checked by NAERSA using the payroll data employers already send to Revenue. Employees outside the age or earnings range can join voluntarily. Self-employed people are not covered by the scheme. An employee who pays into a pension through payroll is not enrolled in that job, but can still be enrolled through a second employment.
Contribution Rates for Employees, Employers and the State
Contributions are a percentage of gross pay, on earnings up to €80,000 a year. They rise every three years:
| Period | Employee | Employer | State top-up | Total |
|---|---|---|---|---|
| 2026 to 2028 | 1.5% | 1.5% | 0.5% | 3.5% |
| 2029 to 2031 | 3% | 3% | 1% | 7% |
| 2032 to 2034 | 4.5% | 4.5% | 1.5% | 10.5% |
| 2035 onwards | 6% | 6% | 2% | 14% |
For every €3 an employee saves, the employer adds €3 and the State adds €1. The employer contribution is a business expense for the company. Once an employee’s pay passes €80,000 in a calendar year, contributions stop for the rest of that year.
What Employers Must Do
- Register on the MyFutureFund employer portal. Log in with your ROS details, confirm the company’s details and set up a payment method, such as a variable direct debit, before contributions fall due.
- Use the payroll notifications. NAERSA sends an Automatic Enrolment Payroll Notification (AEPN) for each enrolled employee. Retrieve the latest AEPNs just before you finalise each payroll and apply them.
- Deduct and pay contributions. Deduct the employee’s share, add the employer’s share and submit the contribution return to NAERSA through payroll, paying by the pay date.
- Tell your employees. Let each employee know they have been enrolled and from what date; template letters are available on the employer portal.
- Keep records. Keep payroll and contribution records so you can show you complied if NAERSA checks.
Employers cannot opt out of the scheme on an employee’s behalf or encourage an employee to leave it. Failing to enrol eligible employees, underpaying contributions or pressing employees to opt out can lead to fines, repayment of contributions with interest and prosecution.
Opting Out, Suspending and Re-enrolment
- Opting out: an employee can opt out during months 7 and 8 after enrolment, through the participant portal. Savings built up so far stay invested for the employee until retirement age.
- Suspending: after the first six months, an employee can pause contributions. Employer and State contributions pause too.
- Re-enrolment: an employee who opts out or suspends is enrolled again after two years if still eligible.
If You Already Have a Company Pension Scheme
Employees who already pay into an occupational pension or PRSA through payroll are not enrolled in MyFutureFund for that employment. Existing schemes can run alongside auto-enrolment for staff who are not members. Check whether every employee aged 23 to 60 earning €20,000 or more is covered by your scheme; anyone who is not will be enrolled by NAERSA.
How We Can Help
Auto-enrolment is handled through payroll. Our payroll services cover registering on the employer portal, applying AEPNs, deducting and paying contributions each pay period and keeping the records, alongside PAYE, USC and PRSI. If you are hiring your first employee, you will also need employer registration with Revenue.
Disclaimer: This article is for general information only and does not constitute legal, tax or pensions advice. Check the current rules with NAERSA or the Department of Social Protection before acting.
