What auto-enrolment scheme means for employers
- all of your employees meeting the eligibility criteria, who do not already have a pension scheme will be enrolled into the auto-enrolment pension
- you will need to ensure that your payroll can take instruction for enrolment, calculate and pay employee and employer contributions to the Central Processing Authority
- you will be required to match members’ contributions up to an eventual maximum of 6% subject to an earnings threshold of €80,000
- employer contributions will be deductible for corporation tax purposes
How much it will cost
- employer 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%
- contributions will be fixed and employees or employers won’t be able to contribute less or more than the set rate
Employers who have an employee pension scheme in place, that all employees can join, will not be subject to auto enrolment. You have the option of setting up your own scheme or facilitating your employees to join the Auto-enrolment Retirement Savings System
