From 1 January 2026, Ireland will introduce a national Auto-Enrolment Retirement Savings System, aimed at helping workers save for retirement in a simple and structured way. This long-awaited reform is designed to address the fact that over 65% of private sector workers currently have no supplementary pension and rely solely on the State Pension.
The scheme, officially named My Future Fund, will automatically enrol employees aged 23 to 60 who earn €20,000 or more annually and are not already contributing to a pension. These workers won’t need to take any action to join — they’ll be enrolled automatically through payroll systems managed by Revenue.
The system will be run by a newly established public body, the National Automatic Enrolment Retirement Savings Authority (NAERSA). NAERSA will handle enrolment, collect contributions from employees, employers, and the State, and invest the funds. Workers will retain a single pension pot even if they change jobs — a feature known as “pot-follows-member”.
How Contributions Work
The contribution model is straightforward:
- For every €3 an employee contributes, the employer matches with €3, and the State adds €1.
- This means €7 goes into the pension pot for every €3 the employee pays.
Contributions will be phased in over 10 years:
- Years 1–3: 1.5% employee + 1.5% employer + 0.5% State
- Years 4–6: 3% employee + 3% employer + 1% State
- Years 7–9: 4.5% employee + 4.5% employer + 1.5% State
- Year 10 onward: 6% employee + 6% employer + 2% State
Contributions are calculated on gross earnings up to €80,000 per year. Employees earning above this threshold will not contribute on income beyond that point. For more information, head to the gov.ie website.
Opt-Out and Re-Enrolment
Employees can opt out between months 6 and 8 of enrolment. If they do, contributions stop, but the savings remain in their account. After two years, they’ll be automatically re-enrolled unless they opt out again.
Minimal Employer Burden
Employers will have limited administrative responsibilities. They’ll use a dedicated portal to manage payments and view employee records. NAERSA will handle eligibility checks, enrolment, and investment management, making the system streamlined and accessible.
Why It Matters
Ireland is the only OECD country without a national auto-enrolment pension system. With an ageing population and increasing pressure on the State Pension, this scheme is a vital step toward ensuring financial security for future retirees.
Minister Dara Calleary, who formally established NAERSA in October 2025, described the scheme as a “significant step to ensure around 750,000 workers will have access to quality assured retirement savings”.
Simon Duff – Director Leap29 shares his perspective
“It’s reassuring to see Ireland finally taking action on retirement savings. The new auto-enrolment scheme launching in January 2026 feels like a practical and long-overdue step. With so many private sector workers relying solely on the State Pension, this system gives people a structured, accessible way to build financial security for the future. I really like how simple it’s been designed—automatic enrolment, matched contributions, and a pension pot that follows you from job to job. That’s smart, and it’s fair. The fact that employers won’t be burdened with complex admin is also a win. This is the kind of policy that makes a real difference in people’s lives.”
How Leap29 can support
As Ireland introduces mandatory pension enrolment for eligible employees from January 2026, Leap29’s Ireland EOR services can help businesses navigate the administrative requirements set by the National Automatic Enrolment Retirement Savings Authority (NAERSA), including managing contributions, ensuring accurate payroll deductions, and maintaining employee records. Leap29’s global expansion expertise ensures employers remain compliant while offering employees a seamless experience with their pension savings. This ensures that digital tracking of hours does not lead to unfair deductions or wage manipulation.
Leap29 Perspective
“There is something refreshing about seeing a policy that tries to meet people where they are. Greece’s new labour reforms feel like a shift toward recognising the realities of modern work. The 13-hour day is understandably controversial, but it is optional, capped, and comes with clear protections. What I find more impactful are the changes that support everyday life—more flexible leave, a year-round four-day workweek, and stronger parental benefits. These updates show a growing awareness that work-life balance isn’t just a buzzword—it’s a real need. The digital upgrades and safety measures are also a step forward in making workplaces more transparent and secure. It’s not perfect, but it’s progress—and it’s good to see that fairness and flexibility are being taken seriously.” Simon Duff Director Leap29
