Auto Enrolment

Auto Enrolment Retirement Savings System

New Workplace Pension Scheme for Ireland – Minister Humphreys announces details of Automatic Enrolment Retirement Savings System

Ireland is the only OECD country that doesn’t yet operate an Auto Enrolment or similar system as a means of promoting pension savings. The new system is designed to simplify the pensions decision for workers and make it easier for employers to offer a workplace pension.

  • approximately 750,000 workers to be enrolled into a new workplace pension scheme
  • participation in the new scheme will be voluntary – workers will have the ability to opt-out
  • scheme includes matching employer contributions and a State Top-up
  • for every €3 saved by a worker, a further €4 will be credited to their pension savings account- the employer will match the employee contribution and the State will also top up contributions by €1 for every €3 saved by the employee, up to a maximum of €80,000 of earnings.
  • employees will have a range of four retirement savings funds to choose from


Phased implementation

  • all employees not already in an occupational pension scheme, aged between 23 and 60 and earning over €20,000 across all of their employments, will be automatically enrolled


  • with the system set up by 2023 for employee enrolments in 2024, the introduction of Auto Enrolment will be very gradually phased in over a decade, with both employer and employee contributions starting at 1.5%. This steady phasing allows time for both employers and employees to adjust to the new system
Years Employee
(as % of salary)
(as % of salary)
(as % of salary)

(as % of salary)

1-3 1.5% 1.5% 0.5% 3.5%
4-6 3% 3% 1% 7%
7-9 4.5% 4.5% 1.5% 10.5%
10 + 6% 6% 2% 14%


Sage Payroll already provides for Employee and Employer pension contributions in Salary computations and will be updated for Auto Enrolment once the details has been published in legislation.