What is Auto-Enrolment?
Auto-enrolment is a new pension savings scheme launching on 1 January 2026 for eligible employees not in an existing pension plan. Contributions will be made by the employee, employer, and Government. Once enrolled, employees can opt out after 6 months but will be automatically re-enrolled every 2 years if still eligible.
Who Will Be Automatically Enrolled?
Employees will be automatically enrolled if they:
Are aged between 23 and 60,
Earn €20,000 or more annually, and
Are not already part of a pension plan.
Those earning below €20,000 or outside this age range can join voluntarily if they meet other conditions.
Employer Obligations
Employers must participate by contributing to the scheme. Non-compliance may lead to penalties.
If You Already Have a Workplace Pension
Employees with an existing workplace pension are exempt from auto-enrolment.
Switching Jobs
Your pension follows you across jobs, requiring no additional setup.
Opting Out and Re-Enrollment
You may opt out after 6 months with a refund, but re-enrollment happens every 2 years if you’re eligible.
Contribution Rates and Limits
Contribution rates start at 1.5% of your salary, matched by your employer, and increase to 6% over 10 years. The Government also contributes, starting at 0.5% and rising to 2%. Contributions are capped at an €80,000 salary threshold, beyond which employer and Government contributions won’t apply.
Years of Auto-Enrolment | Employee Pays | Employer Pays | Government Pays | Total Contribution |
1 to 3 | 1.5% | 1.5% | 0.5% | 3.5% |
4 to 6 | 3% | 3% | 1% | 7% |
7 to 9 | 4.5% | 4.5% | 1.5% | 10.5% |
10 and after | 6% | 6% | 2% | 14% |
Example Contribution for a €20,000 Salary:
Years of Auto-Enrolment | Employee Pays (€) | Employer Pays (€) | Government Pays (€) | Total Contribution (€) |
1 to 3 | €300 | €300 | €100 | €700 |
4 to 6 | €600 | €600 | €200 | €1,400 |
7 to 9 | €900 | €900 | €300 | €2,100 |
10 and after | €1,200 | €1,200 | €400 | €2,800 |
This scheme, managed by the National Automatic Enrolment Retirement Savings Authority, provides a structured way to build retirement savings with gradual contribution increases over time.