Ireland’s pension auto-enrolment system, officially called My Future Fund, went live on 1 January 2026. If you’re an employer, this affects your payroll, your costs, and your obligations. If you’re an employee, it affects your pay packet and your retirement savings. Either way, understanding how automatic enrolment works is no longer optional.
This guide explains who qualifies, how much you’ll contribute, what employers need to do, and what happens if you want to opt out. No jargon, no speculation, just practical answers based on how the scheme actually operates.
What Is Pension Auto-Enrolment (My Future Fund)?
Pension auto-enrolment is a government-mandated retirement savings system. It requires employers to automatically enrol eligible employees into a workplace pension scheme, with contributions from the employee, the employer, and the State.
The goal is straightforward: too many people in Ireland are reaching retirement without adequate savings beyond the State Pension. Auto-enrolment addresses this by making pension saving the default rather than something you have to actively choose. It sits alongside the State Pension (Contributory), which requires 40 years of PRSI contributions for the full payment. Auto-enrolment doesn’t replace the State Pension. It supplements it.
The scheme is administered by NAERSA (National Automatic Enrolment Retirement Savings Authority) through the My Future Fund portal at myfuturefund.ie.
Who Gets Automatically Enrolled?
You’ll be automatically enrolled if you meet all of the following criteria:
- You’re aged between 23 and 60
- You earn €20,000 or more per year
- You’re an employee paying PRSI
- You’re not already contributing to a qualifying occupational pension scheme through payroll
Employees aged 18 to 22, or those earning below €20,000, are not automatically enrolled but may opt in voluntarily and receive the same employer and State contributions.
Who is excluded:
- Self-employed individuals (PRSI Class S)
- Participants in Community Employment, Job Initiative, Rural Social Scheme, and Tús
- Employees already in qualifying workplace pension schemes
- Certain company directors depending on their PRSI classification
If you have multiple jobs, your eligibility is assessed per employment. You could be enrolled through one employer but not another, depending on your earnings in each role.
How Much Will You Contribute?
The contribution structure involves three parties: the employee, the employer, and the State. Rates are phased in gradually over ten years to ease the financial impact.
Contribution rates (percentage of gross pay, up to €80,000 per year):
| Period | Employee | Employer | State |
| 2026 to 2028 | 1.5% | 1.5% | 0.5% |
| 2029 to 2031 | 3.0% | 3.0% | 1.0% |
| 2032 to 2034 | 4.5% | 4.5% | 1.5% |
| 2035 onwards | 6.0% | 6.0% | 2.0% |
The State contribution works out at €1 for every €3 the employee contributes. There is a salary cap of €80,000: no contributions are calculated on earnings above this threshold.
What this means in practice:
For an employee earning €40,000 in 2026:
– Employee contribution: €600 per year (€50 per month)
– Employer contribution: €600 per year
– State contribution: €200 per year
– Total going into the pension: €1,400 per year
For an employee earning €60,000 in 2026:
– Employee contribution: €900 per year (€75 per month)
– Employer contribution: €900 per year
– State contribution: €300 per year
– Total going into the pension: €2,100 per year
The pension contribution is deducted from gross pay, which means it reduces your taxable income. The actual impact on take-home pay is smaller than the headline percentage suggests.
Can You Opt Out or Suspend Contributions?
Yes, but the rules are specific.
Opting out: Employees may opt out during months 7 and 8 of their enrolment only. If you opt out during this window, you’ll receive a full refund of your own contributions. However, the employer and State contributions that were made on your behalf are not refunded and remain in your pension account.
Suspension: After six months of enrolment, you can suspend contributions for a minimum of one year and a maximum of two years. No refund is issued when you suspend. Contributions resume automatically when the suspension period ends.
Re-enrolment: If you opt out, you’ll be automatically re-enrolled after two years. You can opt out again during the same window, but the system is designed to keep you saving by default.
The phased contribution structure is deliberately gentle in the early years. At 1.5% of gross pay in the current phase, the impact on take-home pay is modest, and the combined employer and State contributions mean you’re effectively getting free money towards retirement.
What Do Employers Need to Do?
Auto-enrolment creates real obligations for employers. Here’s what’s required:
- Register on the My Future Fund portal (registration opened December 2025).
- Assess eligibility for each employee based on age, earnings, and existing pension scheme membership.
- Retrieve Auto-Enrolment Pension Notifications (AEPNs) from NAERSA for each eligible employee.
- Deduct contributions from payroll and calculate the employer contribution.
- Submit contributions to NAERSA before 6:30pm on each payday.
- Notify employees of their enrolment using NAERSA-provided templates.
- Maintain accurate records and update payroll systems accordingly.
This is a payroll-level obligation. Your payroll software needs to support auto-enrolment, including AEPN retrieval, contribution calculations, and submission to NAERSA. BrightPay, Thesaurus Payroll Manager, Sage Payroll, and Parolla have all confirmed My Future Fund support.
Employer cost impact: In the current phase (2026 to 2028), the employer contribution is 1.5% of each eligible employee’s gross pay up to €80,000. For a team of 10 employees with an average salary of €35,000, that’s approximately €5,250 per year. This cost will double by 2029 and quadruple by 2035.
How Does Auto-Enrolment Affect Existing Pension Schemes?
If you already contribute to a qualifying occupational pension scheme through payroll, you won’t be auto-enrolled into My Future Fund. Your existing pension arrangement continues as normal.
However, “qualifying” has a specific meaning. The pension scheme must meet minimum standards set by NAERSA. If your existing scheme doesn’t qualify, you could end up enrolled in My Future Fund alongside your current pension. Employers should verify with their pension provider whether their existing scheme meets the qualifying criteria.
For employees who change jobs, your My Future Fund account follows you. Contributions from multiple employers accumulate in the same account, administered centrally by NAERSA. This portability is one of the scheme’s key design features and solves the problem of fragmented pension pots from different employments.
What Happens to Your Pension When You Retire?
When you reach retirement age, your accumulated pension savings (your contributions, employer contributions, State contributions, plus investment returns minus fees) become accessible. The exact options for accessing your pension will depend on the scheme rules, but the intent is that you’ll have a meaningful supplement to the State Pension.
The power of auto-enrolment is in the compounding. Even at the initial 1.5% rate, a 25-year-old earning €35,000 who stays enrolled for 40 years will accumulate a substantial fund. The employer and State contributions effectively triple your own savings in the early phases, and the phased increases ensure the fund grows meaningfully over time.
Frequently Asked Questions
Do I have to pay into My Future Fund if I’m self-employed?
No. Auto-enrolment applies to employees only. Self-employed individuals (PRSI Class S) are not included in the scheme. If you’re self-employed and want to save for retirement, you’ll need to set up a personal pension or PRSA independently. Tax relief on pension contributions is available for self-employed individuals through your annual income tax return.
Will auto-enrolment reduce my take-home pay?
Yes, but by less than you might think. At 1.5% of gross pay in the current phase, an employee earning €40,000 contributes €50 per month before tax. Because pension contributions reduce your taxable income, the actual net pay reduction is smaller. And for every €3 you contribute, the State adds €1 and your employer matches your contribution in full. That’s a guaranteed return before any investment growth.
What if my employer already provides a pension?
If your existing workplace pension scheme qualifies under NAERSA’s standards, you won’t be auto-enrolled. If it doesn’t qualify, you may be enrolled into My Future Fund in addition to your existing scheme. Check with your employer or pension provider if you’re unsure.
Can my employer contribute more than the minimum?
Yes. The rates in the table above are minimums. Employers are free to contribute more, and many already do through existing occupational pension schemes. Higher employer contributions can be a powerful recruitment and retention tool.
What happens if I change jobs?
Your My Future Fund account stays with you. When you start a new job, your new employer will assess your eligibility and begin making contributions to the same account. There’s no need to transfer or consolidate pension pots from different employers.
Getting Your Business Ready
If you’re an employer, auto-enrolment is a live compliance obligation. Your payroll system needs to handle it, your budgets need to account for it, and your employees need clear communication about what it means for them.
If you need help setting up auto-enrolment in your payroll, understanding the cost impact, or communicating the changes to your team, talk to Kinore. We’re already managing My Future Fund contributions for Irish businesses and can make sure your pension compliance is handled properly from day one.
The information provided in this article is for general guidance and informational purposes only. It does not constitute professional accounting, tax, or financial advice, and should not be relied upon as a substitute for advice tailored to your specific circumstances. While we take care to ensure the content is accurate and up to date at the time of publication, legislation, tax rates, thresholds, and compliance requirements in Ireland can change.
