Auto-enrolment is coming, how ready is your business?

We now appear to be closer than ever with an end of September 2025 launch date for Auto-Enrolment (AE) announced. Ireland’s AE scheme has been 20 years in the making and was finally signed into law by the President in 2024. 

But what is AE and what does it mean for the many Irish employers who may be unfamiliar with the concept? 

The objective of the proposed AE scheme is to ensure that every worker will have access to a workplace pension to supplement the basic State pension. Some of the key features of auto enrolment are:

• Employees, aged between 23 and 60, earning over €20,000 per annum and not already contributing to supplementary pensions, will be automatically enrolled into the new AE scheme.
• Employers will need to facilitate this and will be required to contribute to it – this is the case even if you already have an existing pension scheme in place, to capture employees not included in the existing scheme.
• Initial contributions will be 1.5% of gross income from the employee, and 1.5% from their employer.
• This amount will be increased on a phased basis over 10 years with 1.5% added every three years until a total of 6% is reached from both the employee and employer.
• The State will also make contributions, beginning at 0.5% of gross income. These will increase at the same rate as employer and employee contributions to a maximum of 2%. The contribution rates are outlined below.

Source: Auto Enrolment on www.gov.ie

Undoubtedly, AE is a positive change for future Irish generations as it will help more people save for their retirement. As an employer though, you will need to prepare for its introduction. This may seem like an additional stress on your business, but with our help and support, you don’t have to do it alone.

Companies offering a company pension scheme with competitive contribution levels will enjoy a distinct advantage in the talent market while also enjoying an enhanced employer brand. They can achieve that with the Zurich Master Trust which offers market leading active investment performance*, governance expertise and streamlined administration, all in a cost-effective package.

To find out more about the Zurich Master Trust, visit zurichcorporate.ie

*Source: Zurich, October 2024