Pension Auto-Enrolment is Coming – Is Your Business Ready?

1) Budget for Increased Costs

• In Year 1, employers must contribute 1.5% of each eligible employee’s gross salary.
• This will increase every three years, reaching 6% by 2035.
• Employees and the State will also contribute, but planning ahead is crucial to avoid unexpected payroll strain.

2) Review Your Existing Pension Scheme

• Already offer a pension? Does it meet the new scheme’s requirements?
• Will you enrol new hires right away or wait until they pass probation?
• Your approach will impact payroll planning and employer contributions – it’s worth getting expert advice now.

3) Prepare for the Admin Work

• You’ll need to update contracts, adjust payroll software, and track eligibility.
• Managing opt-outs, re-enrolments, and compliance will require time and resources.
• The right systems – and professional support – will make this much smoother.

Crunch the Numbers

• Work out how auto-enrolment will impact your payroll and budget.
• Plan for the rising contribution rates over the next decade.
• Need expert financial forecasting? Kinore can help – Get in touch today for a tailored consultation.

Build a Long-Term Plan

• Factor auto-enrolment costs into your financial strategy.
• Review your current pension scheme to ensure compliance.
• Uncertain about your next steps? Our expert team can guide you – contact us now.

Keep Your Team in the Loop

• Employees will have questions: How much will they contribute? Can they opt out? How does this impact their take-home pay?
• A clear, simple communication plan will help everyone feel informed and reassured.

While pension auto-enrolment introduces additional costs and administrative work, it also brings several benefits for Irish SMEs. Here’s how it can be a positive for your business:

A Happier, More Productive Team

When employees feel financially secure, they stress less and perform better. Knowing their employer is contributing to their future helps build trust and loyalty, which can lead to a more engaged and motivated team.

Reduce Staff Turnover

Employees are more likely to stay long-term if they feel supported. A pension gives them another reason to stick with your company, helping you save on recruitment and training costs.

You’re Not Paying for It Alone

The good news? The State is contributing too, so you’re not carrying the full cost of the pension alone. That makes it more affordable to support your employees’ financial future than setting up a private scheme.

Avoid Last-Minute Panic

Getting ahead of the changes now means less stress later. Instead of scrambling to comply at the last minute, you can plan, budget, and set things up smoothly – avoiding any unnecessary admin headaches.