Getting ready for pensions Auto-Enrolment in Ireland

Pensions have often been overlooked by employees, but this is starting to shift as organisations focus on improving financial wellbeing. The upcoming Auto-Enrolment pensions scheme in Ireland is set to affect approximately 800,000 employees by the end of 2025, marking one of the most significant changes to benefits structures in the country’s history.

For employers in Ireland, this new legislation introduces a host of regulatory and process changes, potentially creating a significant administrative burden. To help you prepare, we explore what the Auto-Enrolment pension scheme entails, how technology can simplify the transition, and what steps you should take now.

What is the Auto-Enrolment pension scheme?

The Automatic Enrolment Retirement Savings Systems Act 2024, enacted in July 2024 to introduce a new system of retirement savings, establishes Ireland’s new Auto-Enrolment pension system. Eligible employees will be automatically enrolled in the National Auto-Enrolment Pension Scheme, which is managed by the National Automatic Enrolment Retirement Savings Authority. Contribution rates will increase incrementally, starting at:

• 1.5% for employees
• 1.5% for employers
• 0.5% from the government

For every €3 contributed by an employee, their employer will add €3, and the government will add €1, meaning €7 goes into the employee’s pension for every €3 they put in. Employer and government contributions are capped at €80,000 gross salary, but there is no cap on employee contributions.

Employers can continue using an existing pension scheme to meet Auto-Enrolment requirements, provided affected employees consent. As long as employees remain in the pension scheme, they will not need to be auto-enrolled to the national scheme.

While originally planned to be introduced in January 2025, the start date has been delayed to 30th September 2025, giving employers additional time to develop compliant plans. However, HR and Reward leaders should act now to avoid managing two separate pension systems and guarantee a smooth transition.

Tailoring your pensions scheme to meet employee needs

For many organisations, Auto-Enrolment may mean offering pensions for the first time. This is a unique opportunity to align pension strategies with your company’s culture and values, rather than simply meeting legislative requirements. A good starting point is reviewing your current pension scheme to assess its relevance for your evolving workforce. Organisations should consider whether to include previously excluded employees, such as seasonal or transient workers, and how to create a plan that reflects employee diversity and varying expectations.

A flexible approach to pensions can make all the difference in meeting the needs of your workforce – it isn’t a one size fits all situation. By going beyond the government’s default option, organisations can demonstrate their commitment to employees’ financial wellbeing and position themselves as employers of choice in an increasingly competitive talent market.

How technology simplifies Auto-Enrolment

Technology can play a vital role in reducing the complexities of Ireland’s Auto-Enrolment system. Unlike the UK model, where employers manage and own the responsibility to determine who to enrol, Ireland’s scheme involves a central processing authority determining eligibility. Benefits technology platforms like OneHub can ease administrative burdens on HR and Reward teams by streamlining processes, while also creating a more engaging employee experience.

Here are five ways benefits technology can support Auto-Enrolment:

1. Employees can view pensions, other benefits, and their total rewards in a single platform, giving them a clear understanding of the full value of their pensions
2. The automation of processes reduces manual work, ensures compliance, and eliminates potential errors
3. Platforms provide built-in safeguards to meet legislative requirements, allowing you to deliver statutory information clearly and accurately to employees
4. Customised, well-timed communication through technology helps employees understand Auto-Enrolment, reducing confusion
5. Integrating payroll with benefits technology simplifies contribution tracking and ensures seamless updates as rates change over time

Start preparing now

Although Auto-Enrolment won’t take effect until late 2025, early preparation is essential. The first step is to fully understand the new legislative obligations and develop a clear plan for compliance. Employers should familiarise themselves with the requirements, ensuring their current systems are equipped to handle the upcoming changes.

Close collaboration with payroll and benefits providers is also crucial to ensure a smooth transition. Payroll systems will play a key role in managing contributions and generating accurate reporting, so demonstrating proactive engagement with them will help identify and address any potential barriers early.

Equally important is developing a robust communication plan for employees. Many employees may not fully understand Auto-Enrolment or its implications, so providing clear, simple explanations is essential. Addressing common questions, such as costs, contribution rates, and the benefits of participation, can help build trust and engagement. This communication strategy should begin well in advance to ensure employees feel informed and supported throughout the process.

To explore the impact of Auto-Enrolment and discover practical strategies for a smooth transition, watch our on-demand session, Getting ready for pensions auto-enrolment in Ireland.