On this page
Ireland's auto-enrolment (AE) pension scheme went live on 30 September 2025. It automatically enrols employees aged 23 to 60 who earn more than €20,000 a year and are not already in a workplace pension, with contributions coming from the employee, their employer and the State.
What is auto-enrolment?
Auto-enrolment is a new workplace pension system designed to increase retirement savings in Ireland. Eligible employees are enrolled automatically (unless they opt out) into a pension fund, and money is added from three sources: their own salary, their employer and a State top-up. Around 800,000 workers were not covered by any pension before the scheme launched.
Who is automatically enrolled?
- Employees aged 23 to 60.
- Earning more than €20,000 per year (across all employments).
- Not already contributing to a qualifying pension scheme.
- Workers outside these criteria can still join voluntarily.
Contribution rates (phased in)
| Period | Employee | Employer | State | Total |
|---|---|---|---|---|
| Years 1–3 | 1.5% | 1.5% | 0.5% | 3.5% |
| Years 4–6 | 3% | 3% | 1% | 7% |
| Years 7–9 | 4.5% | 4.5% | 1.5% | 10.5% |
| Year 10+ | 6% | 6% | 2% | 14% |
Contributions are calculated on gross earnings up to a cap of €80,000 a year. The State top-up is paid directly into the employee's fund.
Can employees opt out?
Yes — employees can opt out after six months, and their own contributions are refunded (employer and State contributions are not). If they remain in employment and are still eligible, they are automatically re-enrolled after two years.
What employers need to do
- Identify and enrol eligible employees through payroll.
- Deduct employee contributions and pay the employer contribution.
- Keep records and report contributions to the Central Processing Authority.
- Employers with a qualifying existing scheme can continue to use it instead, subject to the rules.
Frequently asked questions
When did auto-enrolment start in Ireland?
The scheme went live on 30 September 2025, with the first employers and employees enrolled from that date.
How much do I contribute to auto-enrolment?
In the first three years you contribute 1.5% of your gross pay, your employer adds 1.5% and the State adds 0.5%. The rates then step up gradually to 6% each (plus a 2% State top-up) by year 10.
Can I opt out of auto-enrolment?
Yes, after six months. You will be automatically re-enrolled after two years if you still meet the eligibility criteria.
Who is eligible for auto-enrolment?
Employees aged 23 to 60 who earn more than €20,000 a year and are not already contributing to a qualifying pension scheme.
Auto-enrolment brings new payroll duties and deadlines for employers. If you need help enrolling staff, calculating contributions or deciding whether your existing pension scheme qualifies, talk to Bradán Accountants — we will make sure your payroll is ready.
Sources
- Gov.ie – Auto-Enrolment Retirement Savings System
- Pensions Authority – Auto-Enrolment
Talk to us
Need help with your accounts?
Get jargon-free advice from our Galway and Dublin accountants.
