Auto-Enrolment: Frequently Asked Questions

Auto-Enrolment is a new national pension system, managed by the National Automatic Enrolment Retirement Savings Authority (NAERSA), where eligible employees are automatically enrolled into My Future Fund. The employee, the employer, and the State all make contributions to the employee’s pension savings. Employees do not need to apply. They can choose to opt out later, within a defined period. Payroll software handles the calculations and eligibility checks automatically — there is no manual assessment required.

Employees will be automatically enrolled if they:

• are aged between 23 and 60
• earn at least €20,000 per year across all employments combined
• are not already contributing to a qualifying pension scheme through payroll

If someone does not meet these criteria, they can still opt in voluntarily. Employees under 23 or between 60-66 who earn above the threshold are not automatically enrolled, but they can opt in and receive the same contributions.
Eligibility is determined by NAERSA based on payroll data; employers do not manually assess eligibility.

The earnings threshold looks at income from all employments. A review of up to the previous 13 weeks of payroll submissions may be used to determine eligibility. NAERSA carries out this assessment using data that employers already submit through payroll.

Contribution rates are phased in over time. During the first phase, employees and employers contribute 1.5% each, with the State adding 0.5%. Contribution rates will increase gradually over a ten-year period. Contributions apply to gross pay up to a maximum annual earnings limit.

Contribution rates and thresholds shown here are based on the current published design and may change if legislation is updated.

Rates are set by the scheme design — employees cannot choose higher or lower rates during the phased rollout.

Employers need to register on the My Future Fund employer portal, provide bank details to set up the Direct Debit for contributions, ensure payroll data is accurate, process contributions and submissions through payroll, and communicate with employees so they understand the change.

Yes. All employers operating in Ireland are required to implement Auto-Enrolment for eligible employees, regardless of their size or sector.

Not in the initial phase. The scheme currently applies only to PAYE employees. Self-employed individuals, including Class S directors, are not eligible at launch. Self-employed people can still contribute to private pension arrangements, such as a PRSA, outside of Auto-Enrolment.

Yes — but only after a minimum participation period. Employees must remain enrolled for six months, after which they have a two-month window to opt out and receive a refund of their own contributions. Any employer and State contributions made during the six-month period remain in the employee’s pension pot.

The employee’s pension savings stay with them. If they join a new employer and meet the eligibility criteria, contributions will start again. There is no need to transfer or move funds manually.

If an employee is already contributing to a pension scheme through payroll, they will not be auto-enrolled for that employment. At the moment, any active contribution through payroll will be sufficient for exemption, once they meet the criteria.

If your existing pension scheme has a waiting period before employees can join, eligible employees may be auto-enrolled into My Future Fund during that time. Auto-Enrolment contributions will continue until the next PSR is submitted to Revenue with pension contributions for your company scheme. This timing may create a short overlap where contributions are made to both schemes. In that case, the employer and employee can apply for a refund through NEARSA for any overlapping Auto-Enrolment contributions.

Employers that fail to meet their Auto-Enrolment obligations — such as not paying contributions or attempting to pressure employees to opt out — will face fines and penalties. Any underpaid or withheld contributions will accrue interest. NAERSA has the authority to conduct compliance checks and apply penalties.

Yes. Contributions are based on total gross pay, including overtime, holiday pay, BIK and other earnings included in payroll.

Eligibility is assessed based on recent payroll data. A 13-week look-back period may be used to determine whether earnings meet the threshold.

For term-time staff, eligibility and contributions are based on the same 13-week look-back as other employees. NAERSA reviews earnings reported on the PSR for the previous 13 weeks across all employments. If the employee meets the earnings and age criteria during that review, Auto-Enrolment contributions will apply for the periods where payroll is processed.

For employees with variable or fluctuating pay, NAERSA uses the last 13 weeks of payroll submissions to assess eligibility. If their earnings over that period meet the threshold and they fall within the age criteria, they are enrolled and contributions are calculated on the actual gross pay in each period.

They may be enrolled if the 13-week review shows that earnings meet the threshold.

If no payroll is processed during a period, no Auto-Enrolment contributions are made.

Contributions are calculated based on what is paid on the pay date. The full amount on the payslip is assessed.

Yes. Employees who are under 23, over 60, or earning below the threshold can still join voluntarily. Once enrolled, the standard contribution rules apply. Proprietary directors taxed under Class S are not covered in the initial phase of Auto-Enrolment and cannot opt in for now.

An employee over 60 who is not automatically eligible can still opt in voluntarily. They can do this through the My Future Fund portal. Once they opt in, the employer must make contributions in line with the standard Auto-Enrolment rules.

Yes. Once an employee opts in to Auto-Enrolment, the employer must contribute at the required rate, regardless of whether the employee meets the automatic age or earnings criteria.

Employees who are automatically enrolled must stay in the scheme for an initial minimum period. After six months in the scheme, there is a two-month opt-out window (months 7 and 8). Employees who leave during this window receive a refund of their own contributions; employer and State contributions remain invested. If the opt-out window is missed, the employee stays enrolled until the next opt-out period becomes available. Employees who opt in voluntarily may also opt out during the same defined windows. NAERSA manages the opt-out timing and processes any refund of employee contributions.

Auto-Enrolment is designed so that saving for retirement is the default, but employees still have a choice. People can opt out if they feel they cannot afford contributions at that time, or if they prefer to make their own arrangements. The opt-out rules and windows are set in legislation and managed by NAERSA.

Earnings from all employments count toward the income threshold. If someone is eligible, each employer will enrol them separately and contribute based on earnings in that employment.

If pension contributions are not processed through payroll, Auto-Enrolment still applies. Private arrangements outside payroll do not exempt someone.

To avoid being auto-enrolled, the employee must have pension contributions processed through payroll for that employment. Private pensions that are not reported in payroll do not exempt an employee from Auto-Enrolment.

No. Proprietary directors taxed under Class S are not covered in the initial phase of Auto-Enrolment and cannot opt in for now. The scheme currently applies only to PAYE employees. Future phases may expand eligibility, but no timelines have been confirmed.

They will remain enrolled until the next official opt-out window becomes available.

Eligibility in January is determined by the AEPN issued by NAERSA, based on recent payroll data. If the AEPN indicates that the employee is to be enrolled, contributions should start from the date shown. If there is no payroll being processed during part of their leave, no contributions are deducted for those unpaid periods.

No. If the employer is not paying the employee and there is no payroll being processed, no Auto-Enrolment contributions are due for those weeks. If the employer pays sick pay through payroll, contributions are calculated on the sick pay in the same way as other earnings.

Where no payroll is processed, no Auto-Enrolment contributions are made. Eligibility is based on submitted payroll data.

Yes. If pension contributions are processed through payroll for that employment, Auto-Enrolment does not apply for that job. NAERSA reviews pension fields in the PSR to confirm whether Auto-Enrolment applies.

Yes. If an employee’s PRSA contributions are processed through payroll for that employment, it is treated as a qualifying pension, and Auto-Enrolment does not apply for that job.

Yes. NAERSA looks at all pension fields reported on the PSR for that employment. If there is an employer pension contribution reported through payroll, that employment is treated as having a qualifying pension and the employee is exempt from Auto-Enrolment for that job.

They remain eligible for Auto-Enrolment. Private pensions outside payroll are not counted as an exemption.

No. NAERSA relies on payroll and Revenue submissions to determine who is enrolled. If a pension is not reported in payroll, the employee will be treated as not having a qualifying pension for that employment and may be auto-enrolled.

No. Once a qualifying pension is reported on the PSR before the first pay run in January, Auto-Enrolment will not apply for that employment.

Yes. Exemption applies separately to each employment where pension contributions are reported through payroll.

Yes, once they have a PPS number. Eligibility is based on age, earnings and payroll reporting, not nationality.

If the employment is reported through Irish payroll and the employee meets the eligibility criteria, they are included.

Only act if the employee appears on the automatic enrolment notice.

The employer who pays earnings that are reported on the PSR for that employment is responsible for deducting and paying Auto-Enrolment contributions. Each employment is treated separately based on its own payroll records.

The employer registers on the portal. A payroll agent may assist with the process if they have the required authority.

No. If no one is eligible, registration is not required. However, it is recommended as an employee may become eligible later.

Yes. The employer can hold primary access using their digital certificate, and they can authorise a payroll agent to access the portal on their behalf where appropriate authority is in place.

Payroll software should handle AEPN submissions, enrolment, contribution calculations, the submission file, and employee notifications.

Auto-Enrolment is administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA). NAERSA is responsible for managing the My Future Fund system, receiving data from payroll, and ensuring that employers and employees are enrolled correctly. Employers do not manually decide eligibility — NAERSA issues the enrolment instructions based on payroll data.

NAERSA reviews payroll submissions sent to Revenue and applies the scheme rules to decide who meets the eligibility criteria. Once an employee qualifies, NAERSA issues an Automatic Enrolment Payroll Notification (AEPN) through payroll software telling the employer when contributions should start.

Eligibility is reassessed every pay period using payroll data submitted to Revenue. If an employee becomes eligible or exempt based on updated earnings, a new AEPN will be issued instructing the employer to enrol them or to stop deductions.

The Automatic Enrolment Payroll Notification (AEPN) is an official instruction from NAERSA. It shows who has been enrolled, the start date, and the contribution rates. This means employers do not have to interpret the rules themselves — they follow the AEPN to stay compliant.

Yes. NAERSA manages the collection of contributions. Employers set up a Direct Debit on the My Future Fund employer portal, and NAERSA collects contributions based on the data submitted through payroll. This process is separate from normal PAYE obligations.

NAERSA manages the employee pension accounts, maintains the State top-up rules, publishes fund options, and oversees investment providers. It is responsible for ensuring contributions are invested correctly and for communicating with employees about their My Future Fund savings.

Yes. NAERSA issues official enrolment notices, opt-out timings, and information about contributions. Payroll software may also generate letters, but the official communication comes from NAERSA.

Employees can log in to the My Future Fund portal (which is operated by NAERSA) from 1st January 2026. They can view their contributions, the State top-up, fund options, and annual statements.

NAERSA is a State body created to run Auto-Enrolment. It manages My Future Fund on behalf of the State, including employer contributions, State top-ups, and investment oversight. Its costs are funded through central government rather than employer fees.

No. Auto-Enrolment contributions are not collected through existing Revenue channels such as ROS or RDI. They are paid separately through the My Future Fund Direct Debit process.

Employers set up a single Direct Debit mandate through the employer portal. Contributions are collected around the employee’s pay date based on the submission file.

Direct debits are linked to each payroll run. Contributions are collected after each pay period, based on the contribution details submitted through the AECS file.

No. Auto-Enrolment uses a separate process. Contributions are not collected through normal payroll taxes.

Contributions follow the actual pay date. The Direct Debit will run after the submission deadline for that pay period.

No. Auto-Enrolment operates separately from PAYE, PRSI and USC. These deductions continue as normal, and pension contributions are handled through the My Future Fund process.

Yes. Auto-Enrolment contributions are reported to NAERSA through a separate file, the Auto-Enrolment Contribution Submission (AECS), which is generated and sent by payroll software.

The AEPN is the instruction issued by NAERSA to enrol an employee. It is received through payroll software and shows who must be enrolled and when contributions should start.

This is the file created by payroll software that reports contributions for each employee in each pay period.

Yes. If payroll corrections are made before 6.30pm on the pay date (the contribution collection deadline), the updated figures will be reflected in the AECS file and the contributions collected by NEARSA. After this deadline, corrections won’t affect that period’s contributions — they will be collected as originally submitted.

Changes to contributions can only be made up until the contribution collection deadline — 6.30pm on the pay date. After this deadline passes, the contributions are locked in and will be collected as submitted.

The AEPN is generated based on the central Auto-Enrolment system, so it’s rarely incorrect. If you believe someone has been enrolled in error, first speak with the employee to understand their situation, and then contact NEARSA for clarification. You should still complete the enrolment through payroll — the next AEPN will show that no contributions are due, and any refunds (if required) are handled within the Auto-Enrolment system.

Errors can be corrected through payroll before the contribution deadline. After collection, refunds go through NAERSA.

This can happen during early data syncing. Try again later.

Fund details, including the default investment fund, will be available on the My Future Fund website from 1st January 2026.

No. Employers do not choose or influence the investment options. Employees choose their fund through the My Future Fund portal, or they are placed into a default fund if no choice is made.

The pension pot stays with the employee. Savings remain theirs, regardless of where they live.

When someone reaches retirement age, they can access the savings in their My Future Fund pension pot in line with the scheme rules. The pot can be used to provide retirement income, and any remaining balance stays in the fund for the member. Retirement age and access rules are defined in legislation, and options may change over time as contribution phases are completed.

The pension pot will be paid to the employee’s estate or beneficiaries.

No. Auto-Enrolment does not replace the State Pension. It is designed to work alongside the existing State Pension to help people build additional retirement savings through contributions from the employee, the employer, and the State. Employees who qualify for the State Pension will continue to receive it, and their Auto-Enrolment savings will be extra to that.

No. Only pension contributions processed through payroll count as a qualifying exemption.

Yes. Any earnings included in total gross pay count toward eligibility and contribution calculations.

No. Payments such as Carer’s Benefit, Bereavement Benefit and other social welfare payments are not counted as earnings for Auto-Enrolment. Only employment income that is processed through payroll and reported on the PSR is included.