Auto Enrolment for Employees

What auto-enrolment scheme means for employees

  • auto-enrolment scheme is a semi-mandatory retirement savings system designed to give employees extra income in retirement
  • every €3 an employee contributes will be matched by their employer, and the state will top up with a further €1
  • employees who are enrolled will have to stay in the system for six months, but they will be free to opt out in months 7 and 8 if they so wish
  • in the first ten years, employees will also be able to opt out in months 7 and 8 after each contribution rate increase
  • employees will also be able to suspend or pause their contributions at any time outside of the mandatory six-month participation period
  • all contributions – from the employee, the employer and the state – will cease when an employee opts out or suspends their contributions
  • employees who opt out or suspend their contributions will be automatically re-enrolled after two years, once they are still eligible for the scheme

How much will it cost

  • employee contributions will start at 1.5% of gross pay
  • in year 4 they will increase to 3%
  • in year 7 they will increase to 4.5%
  • in year 10 they will increase to the maximum rate of 6%
  • all employee contributions will be matched by their employers and topped up by the State
  • contributions will be fixed and employees won’t be able to contribute less or more than the set rate

Contributions are set as a percentage of your salary. You can’t make additional contributions. If you want to contribute more to your retirement savings then you should set up a private pension such as a PRSA

Information For Employees
Information For Employees
Information For Employers
Information For Employers
Auto-enrolment Questions and Answers
Auto-enrolment Questions and Answers

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