Since 1 January 2026, employees aged 23 to 59 who earn €20,000 or more a year and pay into no pension through payroll are automatically enrolled in MyFutureFund, the State's new retirement savings scheme. Every employer, whatever its size, must apply the instructions that arrive through payroll, deduct the employee's contribution, add a matching employer contribution and pay both to the scheme within five working days of payday. Contributions start at 1.5% each and rise to 6% by 2035.

Key facts

• Start date: 1 January 2026, under the Automatic Enrolment Retirement Savings System Act 2024.
• Who runs it: the National Automatic Enrolment Retirement Savings Authority (NAERSA), under the name MyFutureFund.
• Who is enrolled: employees aged at least 23 and under 60, with gross pay of €20,000 or more a year across all jobs, in a job with no pension contributions through payroll.
• Rates: employee 1.5%, employer 1.5% and State 0.5% of gross pay in 2026 to 2028, rising in steps to 6%, 6% and 2% from 2035.
• Earnings cap: no employee or employer contributions on pay above €80,000 in a year.
• Payment deadline: midnight on the fifth working day after the employee is paid.
• Opt-out: only the employee can opt out, in months 7 and 8 after being notified of enrolment.
• Penalties: fixed payment notices of up to €5,000, prosecution, and interest of 0.0274% a day on late contributions.

What is pension auto-enrolment in Ireland?

Auto-enrolment is a retirement savings system for employees who are not already saving into a pension through their job. The Department of Social Protection says it commenced on 1 January 2026. It does not replace the State Pension; it sits on top of it.

NAERSA, a statutory body set up by the Department, runs the scheme. Employees see their savings on the MyFutureFund portal, and employers use a separate employer portal.

Which employees are automatically enrolled?

Under section 50 of the Act, NAERSA enrols an employee when, on the last day of a pay reference period, the employee:

• is aged at least 23 and under 60
• is an employee in an employment that is not exempt (see below), and
• has total gross pay across all employments of at least €20,000 a year, or a proportionate amount for a shorter period

Some gov.ie pages say "more than €20,000", but the Act says "not less than", so an employee on exactly €20,000 qualifies. Citizens Information gives the short-period test as more than €5,000 over 13 weeks.

NAERSA does the checking, using the payroll data employers already send to Revenue. Employers do not decide who joins. An employee who falls outside the age or pay limits, but is over 18 and under 66 and has no payroll pension, can choose to opt in, and the employer must then contribute in the same way.

People on Community Employment, Rural Social Scheme, Tús and Job Initiative schemes are not eligible. An employee who is enrolled and later earns under €20,000 stays in the scheme.

How much do employers and employees contribute?

Section 61 sets the rates as a percentage of gross pay. "Years 1 to 3" run from 1 January 2026, when the contribution rules commenced.

The rates are fixed. Neither the employer nor the employee can pay more or less into MyFutureFund. Employee contributions get no tax relief; the State top-up of €1 for every €3 the employee pays is given instead.

Contributions stop once an employee's gross pay for the year passes €80,000. The Department explains that contributions are still taken on the whole pay period in which the €80,000 is crossed, and then NAERSA sends a 0% rate for the rest of that calendar year.

What must employers do?

Most of the work happens inside payroll. The Department says employers do not enrol staff themselves: NAERSA reads Revenue payroll data, decides who is eligible and sends an Automatic Enrolment Payroll Notification (AEPN) for each enrolled employee.

The Department says welcome letters for new members are placed in the employer's secure mailbox on the portal, and that using them meets the duty to tell the employee. NAERSA also writes to the employee, but that does not replace the employer's notice.

What about payroll software?

The AEPN is picked up as part of each pay run: in the Department's words, employers "get" the AEPN, apply the instructions and submit to NAERSA. The Department's auto-enrolment hub links to technical guides for payroll software developers. In practice, check that your payroll package (or your payroll bureau) retrieves AEPNs, shows the deduction on the payslip and produces the payment to NAERSA, and do a test run before payday.

Can employees opt out, and when?

Yes, but only the employee can do it, directly with NAERSA. An employer cannot opt out for staff.

• First window: more than 6 months but not more than 8 months after the employee is notified of enrolment (section 54). Citizens Information gives the example of someone enrolled on 1 January 2026, who can opt out in July or August 2026.
• Refund: the employee gets back their own contributions. Employer and State contributions stay in the employee's fund.
• Suspension: after 6 months, an employee can pause contributions instead, for between one and two years (section 62).
• Re-enrolment: anyone who opts out is re-enrolled after two years if still eligible (section 55).
• Rate rises: a new two-month window opens 6 to 8 months after each rate rise, for example July and August 2029. Only the extra amount is refunded.

Opt-out and suspension requests go to NAERSA, not to the employer. Payroll follows the payroll notification NAERSA issues (section 58(4)).

What penalties apply to employers?

The Act treats these as offences: failing to pay contributions on time, deducting contributions and not paying them over, failing to tell an employee about enrolment, and hindering an employee from taking part.

• Prosecution: on summary conviction, a class A fine (up to €5,000), up to 6 months' imprisonment, or both (section 132). Directors and managers can be prosecuted too where the offence happened with their consent or connivance.
• Fixed payment notice: an authorised officer can offer a fixed payment of up to €5,000 instead of prosecution (section 124).
• Compliance notice: an officer can order specific steps by a set date, with an appeal to the District Court (section 123).
• Interest: 0.0274% a day on contributions paid late, not tax deductible (section 138).
• Workplace Relations Commission: an adjudication officer can direct an employer to pay the contributions due from the date the employee should have been enrolled (section 129).

How does auto-enrolment work with an existing pension scheme?

An employment is exempt under section 51 if, through payroll and reported to Revenue, the employee pays into, or the employer pays for the employee into, an occupational pension scheme, a PRSA, a trust RAC or a PEPP. The Act allows minimum standards for these schemes to be set by regulations, so check whether any apply to yours.

Three points catch employers out:

• A personal pension paid directly from the employee's bank account does not count. NAERSA cannot see it, so the employee is still enrolled.
• Exemption is per job. An employee with a pension in one job can be enrolled for a second job without one.
• If an enrolled employee starts paying into a payroll pension later, MyFutureFund contributions for that job stop automatically.

Employers who already run a scheme for some staff should check who is outside it. Whether to extend an existing scheme or let MyFutureFund apply is a cost and benefits question worth taking advice on.

Worked example: a small employer in Co. Louth

A fictional café in Ardee pays four staff monthly. None pays into a pension through payroll.

Aisling in 2026: monthly pay is €32,000 / 12 = €2,666.67.

• Employee: €2,666.67 x 1.5% = €40.00 a month, €480 a year
• Employer: €40.00 a month, €480 a year
• State: €2,666.67 x 0.5% = €13.33 a month, €160 a year
• Total into her fund: €1,120 a year

Dan in 2026: €40,000 x 1.5% = €600 a year from him and €600 from the café, plus €200 from the State.

The café's cost for the two enrolled employees is €480 + €600 = €1,080 a year in 2026 to 2028. If pay stays the same, it doubles to €2,160 in 2029, reaches €3,240 in 2032 and €4,320 from 2035. Each monthly payment to NAERSA is due by midnight on the fifth working day after payday.

What M.A. Whately can do

Our payroll service covers weekly, fortnightly or monthly payslip runs and filing with Revenue before staff are paid. Talk to us about how auto-enrolment fits into your pay runs, or about comparing MyFutureFund with a scheme you already have. If you want the payroll admin around it automated, see our AI and business automation service, or book a chat.

Frequently asked questions

Does auto-enrolment apply to small employers in Ireland?

Yes. The Department of Social Protection says all companies with employees in Ireland, whatever their size or structure, must facilitate auto-enrolment for eligible employees and for those who choose to opt in.

Do employers have to enrol employees on the MyFutureFund portal?

No. Employers register their company details and a payment method. NAERSA decides who is eligible from Revenue payroll data and sends an AEPN, which the employer applies in each pay run.

When must auto-enrolment contributions be paid?

By midnight on the fifth working day after the employee is paid, under regulation 36 of S.I. 637 of 2025. Late contributions carry interest of 0.0274% a day.

Can an employer opt employees out of MyFutureFund?

No. Only the employee can opt out, through NAERSA, in months 7 and 8 after enrolment. Hindering an employee from taking part is an offence under section 128 of the Act.

Are staff in a company pension scheme enrolled in MyFutureFund?

Not for that job, as long as the employee or the employer pays into an occupational scheme, PRSA, trust RAC or PEPP through payroll and the payment is reported to Revenue.

Last checked: 3 October 2026. Written by the M.A. Whately team. This guide is general information, not advice for your situation; talk to us before acting on it.

Sources

• Automatic Enrolment Retirement Savings System Act 2024, Irish Statute Book, checked 2026-10-03
• Automatic Enrolment Retirement Savings System Act 2024 (Revised), Law Reform Commission, up to date to 17 September 2026, checked 2026-10-03
• S.I. No. 637 of 2025, Automatic Enrolment Retirement Savings System Regulations 2025, Irish Statute Book, checked 2026-10-03
• Department of Social Protection: Auto-enrolment, your questions answered, checked 2026-10-03
• Department of Social Protection: Auto-enrolment campaign hub, checked 2026-10-03
• Citizens Information: Auto-enrolment pension, MyFutureFund (page edited 30 June 2026), checked 2026-10-03
• MyFutureFund: employer information, NAERSA, checked 2026-10-03