Auto-Enrolment Guide for Irish Employers - Clear Answers & Compliance Tips

 

1. If an employee is on a fixed term contract, IEA student for the summer, do they need to be enrolled? Is the 20,000 earning per year applicable to this? 

A: Auto-enrolment does not take the contract type into consideration and that's to make sure that as many people as possible are able to avail of and and get the benefits of the scheme. As they're aged between 18 and 66, and they don't have a pension contribution, through payroll, they can always opt into the scheme as well.  

2. If an employer sets up a company scheme that matches employee contributions up to 1.5%, will that be compliant even though the employee will miss out on state contributions? 

A: We are aiming for by year six for those standards to be developed. In the initial year, as long as there's any contribution from the employer or employee through payroll, that employment becomes exempt for that employee.  

3. What happens if your company operates a pension scheme already, but staff can only join once they have passed the probationary period? 

A: My Future Fund doesn't have a waiting period, and that's not taken into consideration because we're basing this purely on the ability to see pension contributions being made. There's a couple of options for employers in a case like that. They can either get rid of the waiting period, or live with the situation where they'll be enrolled into my Future Fund initially, but once those contributions start flowing, NAERSA will be able to see those contributions and that employment then becomes exempt. So there'll be the APN for that employee will be updated and a 0% contribution will be sent to the employer. Any overlapping contributions will be refunded.  

4. What about vesting periods? If an employee leaves within the first two years, is there a requirement to keep the equivalent of auto enrolment in the employee's pension or can the company reclaim all contributions?  

A: In the case of My Future Fund, all contributions become the employee's property, once they're paid over. There isn't a vesting period in the same way that there might be in some private pension schemes. Once those contributions are made, they go into the employee's savings pot. There wouldn't be a refund to the employers in those cases. The employer themselves don’t need to worry about managing pots and paying refunds – that will be done by NAERSA, centrally, outside of the employer’s administration.

5. For employers with multiple pay frequencies, will there be multiple payments then required be paid over direct debit, or will they all be paid one payment same as PAYE?  

A: In cases for employers where they run different pay roles on different frequencies, whether it be weekly and monthly, variable direct debit will be raised at the point where the contribution file is submitted to NAERSA. That will be at the same frequency in which the payroll is run. If it's run weekly, then the direct debit will be raised weekly and if it's run monthly, it'll be raised monthly.  

6. Are there alternative options to pay the contributions other than variable direct debit?  

A: EFT and card payments will also be accepted if the employer does not sign up to the direct debit, but variable direct debit is preferred. 

7. With regards to the legislation providing that employers must notify employees of their enrollment status plus the date of enrollment, will there be any guidance or resources provided?  

A: We're working right now to draft regulations that'll outline exactly what information employers will have to give to their employees. This will only be for the first enrollment. If an employee joins your company and they're already enrolled in My Future Fund, there won't be an obligation to let them know. Or if they've suspended and the suspension ends, you don't need to let them know. It's just for the initial enrollment. We are working to develop tools to, to help employers do that easily as possible,. 

8. If a company has both a already has a company pension scheme, do we need to offer both that and the My Future Fund scheme to employees? 

A: If it's contractually mandatory to join your pension scheme, then no, there's no need to offer My Future Fund.

9. Will NAERSA do the administration of employees going on maternity leave? 

A: Once there's no payment to the employee, the contribution will be zero. Contributions are only collected when there's payment. If someone's on mat leave and there's no payment from the employer, it's pretty much automatic that those contributions will stop during that period. 

Auto-enrolment represents a significant shift in how retirement savings are managed in Ireland, aiming to improve long-term financial security for workers across all sectors. While the system is designed to be as straightforward as possible, there are still important considerations for employers to keep in mind. We hope this Q&A has provided useful insights into the key aspects of the scheme. As further guidance and tools become available from NAERSA, we’ll continue to keep you informed and supported every step of the way. 

Disclaimer: The information provided in this blog is intended for general informational purposes only and should not be construed as financial, legal, or tax advice. While we have made every effort to ensure the accuracy of the information up to the date of publication (August 2025), the details surrounding Pension Auto-Enrolment in Ireland may change as the scheme is implemented and additional regulations are introduced