Auto Enrolment (also known as My Future Fund) is Ireland’s new workplace pension scheme — designed to help employees automatically save for retirement through payroll.
From January 2025, it will apply to anyone aged 23–60 earning over €20,000 per year who isn’t already in a pension plan.
This change affects every employer, so now is the time to prepare your payroll systems and ensure compliance.
Watch Our Auto Enrolment Q&A
Catch up on our recent live session with Paul Redmond, Nathan Dunne (Zurich) and Kent Ashmore (Ashmore Financial Services) discussing what Auto Enrolment means for your business, key dates, and how to plan ahead.
Auto Enrolment FAQ's
What is Auto-Enrolment (AE)?
Auto-enrolment is a new government-backed retirement saving scheme for employees who have not joined or do not have access to a workplace pension scheme. It is mandatory for eligible employees. The scheme is intended as a supplement to the State pension.
Who administers the Auto-Enrolment scheme?
What if I already have a workplace pension scheme?
If your existing pension scheme is facilitated through payroll, you will be exempt from auto-enrolment. You will not have to enroll anyone into My Future Fund if your existing pension scheme includes all your employees. However, if any current or future employees are not included in your scheme, they will be subject to auto-enrolment.
How will the contribution rates increase over time?
Contributions will be phased in over a 10-year period. The rates are set to eventually reach : Employee: 6%; Employer: 6%; and Government Top-up: 2%.
What happens to the contributions if an employee opts out?
If an employee opts out during the specified period, they will get a refund of their own contributions . The employer contribution, however, stays invested in the auto-enrolment scheme and is not refunded to the employee .
What is the official name of the scheme?
The scheme will be known as ‘My Future Fund’.
Who will be automatically enrolled?
All employees will be automatically enrolled if they satisfy the following criteria:
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They are aged between 23 and 60.
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They are earning over €20,000 per annum.
They are not already paying into a work or private pension through payroll.
What happens if an employee changes jobs after being enrolled?
If an employee changes jobs, they will remain a member of the auto-enrolment scheme as it follows their PPS number. The employee will have a single AE account that follows them across employers, removing the need for multiple small pension pots.
What are the tax benefits for employees under AE?
Employees do not receive traditional income tax relief as such . Instead, they receive the government top-up (initially 0.5%) . This top-up essentially equates to an effective tax rate benefit of around 25% .
Will an employee be automatically re-enrolled if they opt out?
Yes, if an employee opts out or suspends contributions, they will be automatically re-enrolled every two years if they are still eligible for the scheme.
When will Auto-Enrolment launch?
The The planned launch date for Auto-Enrolment is 1st January 2026. The rollout begins in January 2025, according to one source.
What if an employee is outside the age or earnings criteria?
If an employee is earning less than €20,000 per year, or if they are not aged between 23 and 60, they can choose to join voluntarily if they are not already part of a pension plan.
What are the initial contribution rates for employees, employers, and the government?
The initial rates for the first three years (Years 1-3) will start at : Employee: 1.5% of eligible earnings; Employer: 1.5% of eligible earnings; and Government Top-up: 0.5% of eligible earnings.
Can an employee opt out of the scheme?
Yes, employees will have an opt-out period. They must stay in the scheme for at least six months, but they can opt out after six months and before they have been in the scheme for eight months .
When can an individual access their Auto-Enrolment savings?
Access to the Auto-Enrolment fund is restricted until an individual reaches State pension age (currently 66) . This is a limitation compared to a private pension plan, which might allow access from age 60, or potentially age 50 if leaving a company pension scheme .
Why Outsource Payroll Now
Auto Enrolment is bringing new rules, reporting, and compliance requirements for every employer. Managing this in-house can quickly become complex — especially alongside tax updates, submissions, and staff queries.
By outsourcing your payroll to RDA Accountants, you can relax knowing everything is done right and on time.
We’ll make sure:
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Your payroll and Auto Enrolment are set up correctly and fully compliant.
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Every payslip and deduction is accurate and submitted on time.
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Your data is safe, private, and handled securely.
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You and your team have someone to turn to for clear answers.
It’s a simple way to save time, reduce stress, and stay ahead of the new rules.
For more information on our payroll offering, contact our Payroll Manager Valerie or call our office on 053 9170507.
