Auto-Enrolment Ireland - The Complete Employer Guide for 2026

Ireland’s auto-enrolment pension scheme is now live. After nearly two decades of policy development and repeated delays, the Automatic Enrolment Retirement Savings System (AERSS) rolled out on 1 January 2026, introducing mandatory employer participation requirements for almost every Irish business.

This is a plain-English overview of what auto-enrolment means for your business and what’s changed - it’s general background, not legal advice; confirm your specific obligations with your accountant or payroll provider.

What Is Auto-Enrolment?

Auto-enrolment is a mandatory workplace pension system. Instead of employees having to actively decide to join a pension scheme, they are automatically enrolled and must actively choose to opt out.

The scheme is operated by the National Automatic Enrolment Retirement Savings Authority (NAERSA). Contributions from the employee, the employer, and the State are pooled and invested through the NAERSA’s central system, building a pension pot for each enrolled worker.

For Irish employers, this is a significant change. Before AERSS, most employers chose not to offer pensions. Employer participation and contributions are now a baseline requirement - which affects the payroll software you need.

Which Employees Must Be Enrolled?

An employee must be automatically enrolled if they meet all three of the following:

Age: 23 to 60 years old
Earnings: €20,000 or more per year (across all employment)
No pension: Not already a member of a qualifying occupational pension scheme

Employees who don’t meet these criteria - those under 23, over 60, or earning less than €20,000 - are not automatically enrolled but can request to join voluntarily.

Part-time and seasonal workers: Their earnings are assessed across all employment, not just hours worked for you. A part-time worker earning under €20,000 across all jobs is not eligible. You are not expected to verify total earnings from other employers - you assess on the basis of known earnings from your employment.

Contribution Rates

Auto-enrolment contributions are phased in over 10 years:

Phase	Years	Employee	Employer	State
Phase 1	1-3	1.5%	1.5%	0.5%
Phase 2	4-6	3%	3%	1%
Phase 3	7-9	4.5%	4.5%	1.5%
Phase 4	10+	6%	6%	2%

Contributions are calculated on gross earnings up to a cap of €80,000 per year. Earnings above €80,000 are excluded.

The employer contribution is an additional cost. In Phase 1, the employer contributes 1.5% of eligible earnings on top of the employee’s wages. For an employee on €35,000, this is €525 per year in additional employer cost. Budget for this before your enrolment date.

How It Works in Practice

You identify eligible employees (age 23-60, earning €20,000+, no existing qualifying pension)
You notify them in writing before deductions begin
Your payroll software calculates contributions each pay period
Employer and employee contributions are deducted and remitted to the NAERSA alongside your regular payroll run - similar to remitting PAYE to Revenue
The NAERSA invests the contributions in a default investment fund on the employee’s behalf
Employees can view their pot and manage their preferences through the NAERSA’s online portal

Opt-Out Rules

Employees have the right to opt out, but there are strict rules around how and when:

Opt-out window: An employee can only opt out from the start of month 7 to the end of month 8 after their enrolment date. They cannot opt out on day one.
Contributions during the waiting period (months 1-6) are held and refunded if they opt out.
Re-enrolment: Employees who opt out are automatically re-enrolled every 2 years. They can opt out again during the new opt-out window.

What employers cannot do:

You cannot offer an employee incentives to opt out
You cannot use opt-out status as a factor in any employment decision
You cannot process an opt-out request before the opt-out window opens

Businesses Already Operating a Pension Scheme

If you already run an occupational pension scheme, you may be exempt from AERSS - but only if:

The scheme is Revenue-approved
Employer contributions meet or exceed the AERSS minimum rates at each phase (1.5% in Phase 1, rising to 6% at full rate)

If your current scheme doesn’t meet these minimums, you have options: top up contributions to meet the threshold, or enrol employees in AERSS for the gap. Get advice from your pension broker or trustee before your enrolment date.

Payroll Software

Your payroll software must be updated to handle auto-enrolment. The calculation and remittance workflow is built into payroll, not handled separately. The main Irish payroll platforms have all been updated:

BrightPay - fully supports auto-enrolment from the 1 January 2026 launch, including eligibility checks, contribution calculations, and NAERSA file generation
Thesaurus Payroll - updated for auto-enrolment, same core functionality as BrightPay
Collsoft - supports auto-enrolment from 1 January 2026

If you use a payroll bureau, confirm with them that auto-enrolment is included in your service and ask whether there is an additional charge.

If you’re on an outdated or unsupported payroll product, you need to upgrade before your enrolment date. Running auto-enrolment contributions on unsupported software is a compliance risk.

HR Software and Record Keeping

Auto-enrolment creates record-keeping obligations. You need to document:

Which employees are enrolled
Enrolment dates
Opt-out elections and dates
Re-enrolment dates for employees who previously opted out

HR platforms like HRLocker and Bizimply can track these records within the employee profile. Whether you use dedicated HR software or a well-maintained spreadsheet, keep the records - the Pensions Authority can request them.

Penalties

The Pensions Authority enforces auto-enrolment compliance. Failures include:

Not enrolling eligible employees
Failing to remit contributions on time
Offering inducements to opt out
Interfering with an employee’s decision to opt in

Penalties range from fixed-penalty notices to civil proceedings for unpaid contributions (with interest). Serious or repeated non-compliance can result in prohibition notices.

Common Questions from Irish Employers

Does auto-enrolment apply to directors? It depends. A director who is also an employee drawing a salary and meets the eligibility criteria (age 23-60, earnings €20,000+) must be enrolled. A director drawing dividends only (no PAYE salary) is generally not eligible. Check with your accountant if you’re unsure.

What about employees who are already past retirement age? Employees aged 61 or over are excluded from mandatory enrolment but can opt in voluntarily.

What if an employee works for multiple employers? Each employer assesses eligibility independently based on their own employment relationship. You are not responsible for coordinating with other employers.

Does auto-enrolment affect the employer PRSI rate? No. Auto-enrolment contributions are separate from PRSI and do not affect the PRSI class or rate.

Summary for Employers

Action	Deadline
Identify eligible employees	Before your enrolment date
Update payroll software	Before your enrolment date
Register with NAERSA system	Before contributions begin
Notify employees in writing	Before first deduction
Budget for employer contributions	Immediately

Auto-enrolment is live. If you haven’t started preparing, the time is now.

For the detailed breakdown of contribution rates, investment fund options, and the State top-up mechanics, see our auto-enrolment pension Ireland guide.

Frequently Asked Questions

Is auto-enrolment mandatory in Ireland? Yes. Eligible employees (age 23-60, earning €20,000+, with no qualifying pension) must be automatically enrolled. Employers have no discretion to exclude eligible employees.

When did auto-enrolment start in Ireland? The scheme launched on 1 January 2026. The phased employer onboarding process means different employers have different enrolment dates.

Can an employee opt out of auto-enrolment immediately? No. Employees can only opt out during a specific window: from the start of month 7 to the end of month 8 after their enrolment date.

How do I remit auto-enrolment contributions? Through your payroll software, which generates a contribution file submitted to the NAERSA alongside your regular payroll run. The process is similar to submitting PAYE to Revenue.

What payroll software supports Irish auto-enrolment? BrightPay, Thesaurus Payroll, and Collsoft all support auto-enrolment from 1 January 2026. Check that your software is on a current version.

Do I need to offer a choice of pension fund? The NAERSA’s central system provides default investment funds. You don’t need to source or manage a pension fund yourself - that’s handled centrally.