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What Businesses Need to Know From 1 January 2026

From 1 January 2026, retirement saving in Ireland will change significantly. A new mandatory auto-enrolment pension system will come into force, placing new legal and administrative obligations on employers of all sizes.

While the concept of auto-enrolment appears straightforward, the reality is more complex. Employers must make important strategic decisions now to avoid unnecessary costs, compliance risks, and employee confusion later.

This guide explains how the new system works, who it applies to, and what employers should be doing now to prepare.

What Is Auto-Enrolment?

Auto-enrolment introduces a State-run retirement savings system, known as My Future Fund (MFF). It will operate alongside existing occupational pension schemes.

Where an eligible employee does not already have pension contributions being paid on their behalf, employers will be legally required to enrol them into My Future Fund and make mandatory contributions.

Who Must Be Auto-Enrolled?

Auto-enrolment will apply to employees who meet all of the following criteria:

  • Aged between 23 and 60

  • Earn more than €20,000 per year, across all employments

  • Not currently receiving pension contributions into a qualifying scheme

Who Is Exempt?

Employees will not be auto-enrolled into My Future Fund if:

  • They (or their employer) are already contributing to a:

    • Occupational pension scheme

    • PRSA

    • Trust Retirement Annuity Contract (RAC)

    • Pan-European Pension Product (PEPP)

Self-employed individuals are not covered by auto-enrolment.

How My Future Fund Will Operate

My Future Fund will be overseen by a new statutory body, the National Automatic Enrolment Retirement Savings Authority (NAERSA).

Key points for employers:

  • MFF will run in parallel with existing pension arrangements

  • Employers must match employee contributions

  • Employees may opt out at specific points, but initial enrolment is mandatory

  • Contribution rates are fixed by law – no flexibility to vary amounts

Mandatory Contribution Rates

Auto-enrolment contributions will be phased in gradually over 10 years.

Initial Phase (Years 1–3)

  • Employee contribution: 1.5% of gross earnings

  • Employer contribution: 1.5%

  • State top-up: 0.5% (equivalent to 25% tax relief)

  • Earnings cap: €80,000

Long-Term Position (Year 10 onwards)

  • Employee contribution: 6%

  • Employer contribution: 6%

  • State top-up increases proportionately

There will be no change to existing tax relief rules for occupational pension schemes.

What About Existing Pension Schemes?

Employers can continue using their existing pension arrangements for auto-enrolment purposes, provided contributions are being made.

Important points to note:

  • For now, any level of contribution into a qualifying pension plan exempts an employee from MFF

  • The Government has indicated that minimum contribution standards will be introduced by regulation before the end of 2025

  • These rules may change, so employers should plan cautiously

Employee Consent Is Critical

Under current Irish law:

  • Employers cannot automatically enrol employees into their own pension schemes

  • Employees must give express consent for pension deductions

  • If an employee does not consent, they must be enrolled into My Future Fund, unless the employer pays contributions on their behalf

This makes employee engagement and communication essential.

When Does Auto-Enrolment Start?

📅 1 January 2026

While that date may seem distant, employers should be preparing now. Payroll systems, pension arrangements, and employee communications all need time to implement correctly.

What Should Employers Do Now?

1. Decide on Your Strategy

  • Will you use My Future Fund?

  • Or continue with (or enhance) your existing pension scheme?

  • What are the cost and administrative implications?

2. Engage Your Advisers Early

  • Payroll providers

  • Pension administrators and trustees

  • Insurers and legal advisers

3. Communicate With Employees

  • Explain what auto-enrolment means

  • Outline the pension option you are offering

  • Allow sufficient time for consent and onboarding

4. Register With My Future Fund

Even if you plan to avoid MFF, employer registration is strongly recommended.

👉 Registration is available at myfuturefund.ie

How Ormonde Solicitors Can Help

Auto-enrolment is not simply a payroll issue – it is a legal, financial, and workforce planning decision.

At Ormonde Solicitors, we advise employers on:

  • Auto-enrolment compliance and risk management

  • Reviewing and updating pension arrangements

  • Employee communications and consent processes

  • Strategic decisions to minimise administrative burden

If you would like tailored advice on how auto-enrolment will affect your business, our team is here to help.

📞 Contact Ormonde Solicitors today for practical, employer-focused guidance.

📞 Contact us today for confidential guidance.

Disclaimer: This article is for general information purposes only and does not constitute legal advice.

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