Auto-enrolment pensions in Ireland: What employers need to know about MyFutureFund

Published Wednesday 16 September 2026

Table of contents

• What is auto-enrolment in Ireland?
• Who qualifies for auto-enrolment?
• How much do employers contribute to MyFutureFund?
• What are your obligations as an employer?
• How to register for MyFutureFund as an employer
• What happens if an employee opts out?
• What if you already offer a workplace pension?
• How does auto-enrolment work with payroll?
• Penalties for non-compliance with auto-enrolment
• Simplify payroll and compliance with Xero
• FAQs on auto-enrolment pensions in Ireland

Key takeaways

• Auto-enrolment is Ireland's workplace pension scheme, known as MyFutureFund, which launched on 1 January 2026 and applies to eligible employees aged 23 to 60 earning at least €20,000 a year.
• Employer contributions start at 1.5% of gross pay and rise gradually to 6% over a 10-year period, with the state also contributing on behalf of each employee.
• As an employer, you're responsible for registering with the MyFutureFund portal, deducting contributions through payroll, and informing employees when they've been enrolled.
• If you already offer a qualifying workplace pension that meets the minimum contribution thresholds, you may be exempt from auto-enrolment.

What is auto-enrolment in Ireland?

Auto-enrolment is Ireland's new workplace pension scheme, designed to help employees save for retirement. It launched on 1 January 2026 under the name MyFutureFund.

The scheme is managed by the National Automatic Enrolment Retirement Savings Authority (NAERSA) and supervised by the Pensions Authority. It was introduced to close a significant retirement savings gap; before auto-enrolment, around 800,000 workers in Ireland had no workplace pension at all.

Under the scheme, eligible employees are automatically enrolled into a pension savings plan. Contributions come from three sources: the employee, the employer, and the state. If you run a small business with staff on your payroll, you need to know how the scheme affects you and what steps to take.

Who qualifies for auto-enrolment?

Employees are automatically enrolled if they meet all three criteria set out by NAERSA. You don't need to assess eligibility yourself; NAERSA checks this using data from Revenue.

To qualify, an employee must be:

• aged between 23 and 60
• earning €20,000 or more per year
• not already contributing to a pension through payroll

Employees on variable hours or seasonal contracts also qualify, provided they meet the income and age thresholds. The scheme covers employees only; self-employed individuals fall outside its scope. Employees who don't meet the income or age requirements can opt into the programme voluntarily – you don't have to sign them up; they'll do it themselves through the MyFutureFund portal.

NAERSA identifies eligible employees and sends Automatic Enrolment Payroll Notifications (AEPNs) directly to your business. These notifications tell you which employees have been enrolled and when their contributions should begin.

How much do employers contribute to MyFutureFund?

Employer contributions start at 1.5% of gross pay and increase in stages over 10 years. The employee matches your contribution at each stage, and the state adds a top-up as well.

The schedule breaks down as follows:

• Years one to three: 1.5% employee, 1.5% employer, 0.5% state
• Years four to six: 3% employee, 3% employer, 1% state
• Years seven to nine: 4.5% employee, 4.5% employer, 1.5% state
• Year 10 onwards: 6% employee, 6% employer, 2% state

The state top-up works out at €1 for every €3 the employee contributes. Contributions are calculated on gross earnings up to a cap of €80,000 per year, so even if an employee earns more, you only calculate contributions on the first €80,000. If an employee has more than one job and their combined wages exceed the threshold, you'll receive an automatic payroll notification to stop their contributions.

There's also a small administration fee of 55 cents per week (capped at €28.60 per year) and an investment management fee of 0.03833% of assets under management.

What this costs in practice

For an employee earning €35,000 a year, your employer contributions would look like this:

• Years one to three: 1.5% = €525 per year
• Years four to six: 3% = €1,050 per year
• Years seven to nine: 4.5% = €1,575 per year
• Year 10 onwards: 6% = €2,100 per year

If you employ five people at a similar salary, your total cost in the first three years would be around €2,625 per year. That increases to €5,250 per year for the following three years. The gradual increase gives you time to plan and budget for the higher rates.

What are your obligations as an employer?

You have several legal obligations under the auto-enrolment scheme. Getting these right from the start helps you avoid penalties and keeps your business compliant.

Your main duties include:

• registering your business on the MyFutureFund employer portal
• acting on AEPNs from NAERSA by setting up contributions for enrolled employees
• deducting employee contributions from gross pay and adding your own employer contribution each pay period
• submitting combined contributions to NAERSA by the specified deadline
• informing each employee when they've been enrolled in the scheme
• keeping accurate records of all contributions and communications

You must also respond to opt-out requests promptly and adjust payroll accordingly when an employee chooses to leave the scheme.

How to register for MyFutureFund as an employer

Registration is handled through the MyFutureFund employer portal. Follow these steps to get set up.

1. Visit myfuturefund.ie and create an employer account using your business details and tax reference number.
2. Verify your business identity through the portal's authentication process.
3. Review any AEPNs you've received from NAERSA to confirm which employees have been enrolled.
4. Set up your payroll to calculate and deduct employee contributions, and add the matching employer contribution.
5. Arrange a direct debit or payment method to submit total contributions to NAERSA each pay period.
6. Notify each enrolled employee in writing, confirming their enrolment and contribution details.

If you use payroll software, check whether it supports auto-enrolment calculations. Many providers have updated their systems to handle AEPNs and contribution processing automatically.

What happens if an employee opts out?

Employees can opt out of auto-enrolment without penalty. There's no financial consequence for the employee, and you can't discourage or incentivise them either way. Employers who force their employees to opt out will face penalties.

Employees must stay enrolled for a mandatory six-month period. If they opt out in the two months after that, they get a refund of their contributions, but the employer and government contributions stay in the fund until the employee reaches the state pension age. Employees who opt out after the 8th month don't get a refund of their contributions.

In either case, if they meet the requirements, they're automatically re-enrolled into the scheme after two years. This happens automatically, and you'll receive a new AEPN when it does. You'll need to start deducting contributions again unless the employee opts out a second time.

From an admin perspective, you should update your payroll records promptly when an employee opts out, and again if they're re-enrolled later. Keeping clean records protects you if NAERSA or Revenue ever queries your compliance.

What if you already offer a workplace pension?

If you already provide a workplace pension, your employees may be exempt from auto-enrolment. The exemption depends on whether your existing scheme meets certain minimum standards.

To qualify for an exemption, your pension must meet both of these thresholds:

• A total contribution rate of at least 3.5% of gross pay (employee and employer combined)
• An employer contribution of at least 1.5% of gross pay

The types of pension that can qualify include occupational pension schemes, Personal Retirement Savings Accounts (PRSAs), trust-based Retirement Annuity Contracts (RACs), and Pan-European Personal Pension Products (PEPPs).

If your pension meets the criteria, you don't need to do anything to get an exemption – if a worker is contributing to an occupational or personal pension, the government will not auto-enrol that worker in the scheme. However, if you have an employee who's opted to receive cash instead of pension contributions, they will be auto-enroled in the new pension.

Review your current arrangements now to check whether they meet the thresholds, especially if your employer contribution is close to the 1.5% minimum. And be aware of how the new auto-enrolment rules affect employees who are not enrolled in your pension and meet the auto-enrolment qualifications.

How does auto-enrolment work with payroll?

Auto-enrolment is designed to work alongside your existing payroll processes. NAERSA sends AEPNs to your business whenever an employee is enrolled, opts out, is re-enrolled, or exceeds the wage limit for required contributions – then, your payroll system handles the rest.

When you receive an AEPN, you need to update your payroll to include the employee's contribution deduction and your matching employer contribution. These amounts are calculated as a percentage of the employee's gross pay each pay period.

Contributions are submitted to NAERSA via direct debit, usually aligned with your payroll cycle. Most payroll software providers have built in support for auto-enrolment, so the calculations, deductions, and submissions can be handled automatically once configured.

If you run payroll manually or use a basic system, you'll need to make sure your process accounts for the new deductions. Consider whether your current setup can handle the additional calculations, reporting, and submission requirements.

Penalties for non-compliance with auto-enrolment

Employers who don't comply with auto-enrolment obligations face serious consequences. NAERSA has the authority to pursue prosecution, impose fines, and charge interest on overdue contributions.

Penalties can apply if you fail to register, miss contribution deadlines, don't act on AEPNs, or try to discourage employees from participating. The penalties increase with the severity and duration of non-compliance.

The simplest way to stay compliant is to register promptly, keep your payroll up to date, and respond to AEPNs as soon as you receive them. For full details on enforcement and penalties, see the official auto-enrolment FAQ on gov.ie.

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FAQs on auto-enrolment pensions in Ireland

The questions below cover the most common employer concerns about auto-enrolment in Ireland.

When did auto-enrolment start in Ireland?

Auto-enrolment launched on 1 January 2026. All employers with eligible employees should already be registered and processing contributions through the MyFutureFund portal.

Can employees opt out of auto-enrolment?

Employees can opt out without penalty – but only after a mandatory six-month contribution period. They initiate the process directly through the MyFutureFund portal, not through their employer.

Do part-time employees qualify for auto-enrolment?

Part-time employees qualify if they meet the same criteria as full-time staff: aged 23 to 60 and earning €20,000 or more per year. Hours worked don't affect eligibility; only age and annual earnings matter.

What is the earnings cap for auto-enrolment contributions?

Contributions are calculated on gross earnings up to €80,000 per year. If an employee earns more than this, you only calculate and pay contributions on the first €80,000.

How do you check if your existing pension qualifies for an exemption?

Check that your scheme's total contribution rate is at least 3.5% and your employer share is at least 1.5%. If your pension meets these thresholds, employees participating in it are exempt from auto-enrolment. However, any employee who isn't in your pension but meets the auto-enrolment criteria will be automatically enrolled in MyFutureFund instead. To keep things simple, aim to enrol all eligible employees in your workplace pension.