Auto-Enrolment Cost Calculator for Irish Employers
See what My Future Fund will cost your business, year by year. Enter your in-scope headcount and salaries and get your employer contribution as the rate phases up from 1.5% in 2026 to 6% from 2035, plus a 10-year total.
Indicative planning tool, not financial or payroll advice. Built on the statutory rate schedule and the EUR 80,000 earnings cap.
What this calculator tells you
Auto-Enrolment - branded My Future Fund and administered by NAERSA - went live on 1 January 2026. Every employer with eligible staff who are not already in a qualifying pension scheme now carries a new, growing payroll cost. This tool answers the question most Irish business owners actually have: not whether you are ready, but how much it will cost, this year and as the contribution rate climbs.
The employer contribution starts at 1.5% of gross earnings and phases up to 6% over ten years. Because it rises in steps, a cost that looks modest in 2026 roughly quadruples by 2035. Modelling the full curve now - not just year one - is what lets you budget honestly and decide whether an existing occupational scheme is the better route.
How the employer cost is calculated
- Contribution base: each in-scope employee’s gross annual earnings, capped at EUR 80,000.
- Employer rate: 1.5% (2026 to 2028), 3% (2029 to 2031), 4.5% (2032 to 2034), then 6% from 2035.
- Your annual cost per employee: capped salary multiplied by the phase rate. The calculator sums this across every salary band you enter.
- The State top-up does not reduce your cost - it is paid into the employee’s pot on top of your contribution.
Who counts as in-scope
Only enter employees aged 23 to 60, earning EUR 20,000 or more, and not already in a qualifying occupational pension scheme. Everyone else is outside the scheme and costs you nothing under Auto-Enrolment. If you are not sure how many of your staff are in scope, run the readiness calculator first - it works out the headcount this tool then prices.
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What to look for
- Budget for the full curve - the employer rate quadruples from 1.5% to 6% by 2035.
- Only employees aged 23 to 60 earning EUR 20,000+ and not in a qualifying scheme are in scope.
- Contributions are capped at the first EUR 80,000 of each salary.
- Confirm your payroll software is Auto-Enrolment ready before your next pay run.
Common mistakes to avoid
- Budgeting only for the 1.5% year-one rate and being caught out by the step-ups.
- Counting the State top-up as something that lowers your employer cost.
- Including out-of-scope staff (under 23, over 60, under EUR 20,000) in your cost estimate.
- Assuming a generous existing pension scheme still needs Auto-Enrolment on top.
Frequently asked questions
How much does Auto-Enrolment cost an employer in Ireland?
In year one (2026 to 2028) the employer contributes 1.5% of each in-scope employee's gross earnings, up to an EUR 80,000 cap. That rate phases up to 3% in 2029, 4.5% in 2032, and 6% from 2035. For an employee on EUR 40,000, the employer cost starts at EUR 600 a year and reaches EUR 2,400 a year at the full rate. Enter your headcount and salaries above for your own figures.
Which employees do I include in the calculator?
Only in-scope employees: those aged 23 to 60, earning EUR 20,000 or more per year, and not already in a qualifying occupational pension scheme. Employees outside those bounds are not auto-enrolled, so they carry no employer contribution cost. The readiness calculator works out how many of your staff are in scope.
Is the employer contribution capped?
Yes. Contributions are calculated on gross earnings up to EUR 80,000 per employee per year. An employee earning EUR 95,000 is treated as earning EUR 80,000 for the contribution calculation - the excess EUR 15,000 is excluded entirely. The calculator applies this cap automatically.
Does the State top-up reduce my cost as an employer?
No. The State top-up (0.5% in year one, rising to 2%) is paid into the employee's My Future Fund pot on top of the employer and employee contributions. It does not offset or reduce the employer contribution. Your cost is the employer column only.
What earnings is the contribution calculated on?
Gross pay as reported on the PAYE Modernisation Payroll Submission - salary, overtime, bonus, commission and shift allowances - up to the EUR 80,000 cap. Benefit-in-Kind is not part of the contribution base, and employer PRSI is separate. Use each band's average gross salary for a close estimate.
Will my payroll software handle the phasing and the cap?
Auto-Enrolment-ready payroll software retrieves the Auto-Enrolment Payroll Notification (AEPN), applies the correct phase rate by pay date, and enforces the EUR 80,000 cap on a year-to-date basis automatically. If you are unsure whether your system is ready, check the payroll software hub.
Related Auto-Enrolment resources
- Auto-Enrolment Readiness Calculator - score your business and get the in-scope headcount this tool prices.
- Auto-Enrolment rate schedule 2026 to 2035 - the full statutory table and worked examples behind these figures.
- Auto-Enrolment vs occupational pension - the qualifying-scheme test and when an existing scheme is the better route.
- Auto-Enrolment key deadlines 2026 - the statutory dates and the within-month payroll rhythm.
- Payroll software for Ireland - compare Auto-Enrolment-ready payroll systems.
Results are indicative only and based on the information provided. Data may not reflect current vendor offerings and is subject to change. Always verify details directly with vendors before making purchasing decisions.