Are you Ready for Auto-Enrolment? Key Insights from Our Budget Panel Discussion

*Auto-Enrolment was introduced in Ireland on 1 January 2026. For the most up-to-date information and resources, please visit our Auto-Enrolment Hub.

In October, during our Virtual Conference, we brought together some of the industry’s leading minds to dissect the upcoming changes from the Irish Budget 2026. While the budget covered a broad range of topics, one subject dominated the conversation: the looming introduction of pension auto-enrolment on January 1st, 2025.

This blog post dives into the key takeaways from that session. We look at the practical challenges, the financial impact, and how businesses can prepare for this significant shift in Irish payroll.

Meet the Experts

Our panel featured three veterans of the Irish tax and payroll landscape, each bringing a unique perspective to the discussion.

Paul Byrne
Paul is the founder and board director here at Bright. A chartered accountant by trade since 1984, Paul moved from practice to software development in the 90s. He founded Thesaurus Software (which later became part of Bright), moving from manual tax deduction cards to building the digital tools payroll professionals use today.

Mark McDonagh
Mark serves as a Product Manager at Bright, specifically overseeing enterprise-level solutions. Like Paul, Mark has a deep background in accountancy (formerly with KPMG and BDO) and over 40 years of experience. He spent 25 years as General Manager of Ardbrook, designing payroll systems for clients ranging from small businesses to massive organisations with 7,000 employees.

Mairead Hennessy
Mairead is a tax advisor with over 20 years of experience. Nine years ago, she founded Taxkey, a boutique tax consultancy practice. Her team advises private clients and businesses on critical areas like income tax, corporation tax, and tax planning. Mairead brings the vital perspective of the advisor on the ground, helping SMEs navigate complex compliance landscapes.

Key Takeaways: Navigating the Auto-Enrolment Landscape

During the discussion, our panel didn’t sugarcoat the reality: the rollout of auto-enrolment presents significant hurdles. However, they also highlighted that with the right preparation and software, these hurdles are surmountable.

Here is what they had to say about the road ahead.

Paul highlighted a concern shared by many: are businesses truly ready? He noted that while we have all seen the ads, the practical “on-the-ground” steps have been less clear.

Employers will need to engage with the new portal (My Future Fund) to set up direct debits, as the system relies on files submitted from payroll to generate payment instructions. Unlike current revenue submissions where corrections are relatively flexible, auto-enrolment is far more rigid. Corrections for incorrect payroll periods might not be easily fixable through software alone and may require manual intervention on the portal — a process that could be time-consuming if support capacity is limited.

Both Paul and Mairead flagged a distinct lack of detailed communication from official bodies regarding the practicalities for employers.

Mairead pointed out that because the scheme is mandatory, the obligation falls on employers to explain it to their teams. This includes rules around contributions, opt-outs, and how it affects take-home pay. Without clear guidance, there is a risk of confusion and mistrust among employees when they see deductions on their payslips in January.

This is a new cost for employers, plain and simple. Mairead emphasised that many small businesses likely haven’t fully budgeted for this. The rates start at 1.5% but will rise incrementally to 6% over the next decade.

This isn’t just an administrative task; it is a financial one. Employers need to factor these rising costs into their cash flow projections now, rather than getting caught out later.

Mark provided some reassurance from a software perspective. The system is designed so that employers “do what they are told” by instructions coming directly from the central authority (NAERSA).

Unlike the UK system where employers make assessment decisions, here the software will download instructions (similar to RPNs) telling you who to enrol. Deductions, opt-outs, and pauses in contributions should largely be automated by your payroll software, reducing the manual administrative burden significantly.

For accountants and bookkeepers, this complexity creates an opportunity. Clients are worried about compliance, costs, and communicating with staff.

Mairead noted that this is the perfect time for advisors to step in. It’s not just about processing the payroll; it’s about helping clients look at their pension structures overall. For some companies, setting up a private occupational pension scheme might actually offer better flexibility and tax efficiency than the state’s auto-enrolment default.

Watch the Full Discussion

The insights above are just the tip of the iceberg. To get the full picture and hear the panel debate the finer details of compliance, software readiness, and tax planning, we highly recommend watching the clip from the session.

*Interested in watching back our full panel discussion on the Irish Budget? Click here.

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.