Automatic Enrolment is Coming: What You Need to Know

This article was written in January 2023. For more up-to-date information on Ireland’s auto enrolment journey, please check out this article published in June 2026.

When we think about retirement, many of us picture ourselves sitting on a beach in sunny Spain, doing a world cruise or spending our days on the golf course. It does sound like a dream – but to live that lifestyle, we need to make sure we start saving for our pensions as early as possible.

According to the Central Statistics Office (CSO), one in three workers in the state have no plan for income in retirement beyond the state pension. Reasons for many workers not having a pension include feeling like they can’t afford it or simply not getting around to setting one up. To bridge this gap, the Irish government is introducing a new scheme that will see approximately 750,000 workers enrolled into workplace pensions in 2024.

What is automatic enrolment?

Under the Automatic Enrolment scheme, employees will have access to a workplace pension which is co-funded by themselves, the state and their employer. Any eligible employees will be automatically enrolled into a pension scheme. The system will be voluntary to employees, but they will need to choose to ‘opt-out’ rather than ‘opt in’. The system will be set up in 2023 and employees will be legally required to be enrolled in 2024.

Which employees are eligible for Auto Enrolment?

To be eligible for Auto Enrolment, an employee must:

Be aged between 23 and 60
Earn over €20,000 a year

If an employee is eligible but is already enrolled in an occupational pension scheme, they don’t need to be enrolled.

How will the scheme work?

From 2024 onwards, the Auto Enrolment scheme will be phased in over ten years. The employee and the employer will make matching contributions. The contribution rates will increase every three years, starting at 1.5% in 2024 and reaching 6% by 2034. These contribution rates are up to a maximum of €80,000 of earnings.

The state will also contribute €1 for ever €3 saved by the employee, up to a maximum of €80,000 of earnings. This means that employees will receive a further €4 for every €3 they save in the scheme.

Once automatically enrolled, employees can choose to ‘opt-out’ of the scheme after six months. Those who have chosen to opt-out should be automatically re-enrolled into a scheme after two years. Again, they can choose to opt-out after six months back in a scheme and if they do so, they will receive a refund of their contributions. Employees will be able to choose between four different pension funds. There is a default fund for employees who have no preference of what fund they are entered into.

How does this affect payroll processors?

Once the Automatic Enrolment scheme commences, payroll processors will need to ensure that those eligible have been enrolled into a scheme and that the correct contributions are being made.

Will Auto Enrolment affect my payroll software?

If you’re using an up-to-date payroll software, then you should be fine as your software provider will make the necessary changes to the software before the scheme commences. At BrightPay, the UK version of our software has features that makes the process of Auto Enrolment quick and easy. Already having this technology means that we are well prepared for when Automatic Enrolment is rolled out in Ireland.

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This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.