Article updated 2nd May 2025
After a significant period of consultation and rescheduling, pension auto-enrolment in Ireland is now set to launch on 1st January 2026. Get up to date on the latest developments on this journey.
Note – this article has been updated to reflect the latest developments and timelines for implementation.
For a more detailed look at the new scheme, visit Ireland pensions auto-enrolment: Guide for payroll and HR.
What’s the latest on pension auto-enrolment in Ireland?
At the end of April 2025, the government announced a further delay to the rollout of pension auto-enrolment to over 800,000 employees in the Republic of Ireland. It will now launch on to 1st January 2026.
The delay was expected by many stakeholders, payroll providers such as Zellis included. When the Minister for Public Expenditure made a statement on April 13th indicating that a delay was incoming, he suggested that this was as a result of a concern over increasing employer costs and the uncertainty brought about by US tariffs. The official announcement this week seemed to suggest that “logistical problems” were the cause and even hinted at readiness challenges amongst small payroll software providers. The reality is more likely that a combination of factors has contributed to the decision, including an underestimation of the size and complexity of the programme, the need to complete the contracting process for the investment management suppliers and the requirement for a large state-led communications plan to educate the impacted workforce.
Background and earlier developments
The concept of a mandatory savings scheme for certain employees who aren’t paying into a pension was first mooted by the late Seamus Brennan as far back as 2006, when he was Minister for Social and Family Affairs. In 2018, the then-Minister for Employment Affairs and Social Protection, Regina Doherty published a ‘strawman’ proposal.
In March 2024, the Department of Social Protection announced that Cabinet had approved the Automatic Enrolment Retirement Savings System Bill. This new law went before the Oireachtas in April and was passed into law on 9th July.
Amongst other things, the legislation establishes an independent public body, the National Automatic Enrolment Retirement Savings Authority (NAERSA), to administer the new system and ensure compliance, under the aegis of the Department of Social Protection.
The state has also named a preferred supplier, Tata Consultancy Services (TCS), to provide the technology and managed services that will be the backbone of the auto-enrolment system. However, it’s understood that contracts have yet to be signed.
When will pension auto-enrolment in Ireland start?
Minister for Social Protection Heather Humphreys has postponed the rollout of the scheme to 1st January 2026.
How far along are payroll suppliers and NAERSA?
Engagement continues between the Payroll Software Developers Association and the National Auto-enrolment Retirement Savings Authority (NAERSA), as well as the Department of Social Protection. There is general consensus that the technical design of the scheme is nearing completion, and it has been indicated that those software suppliers who are in a position to do so, will have test facilities made available to them in mid-summer to commence testing.
What will pension auto-enrolment in Ireland look like?
NAERSA is the new state body that will act as a central processing authority (CPA). It will be responsible for collecting contributions from employers, employees, and the state. It will then pass those contributions to investment funds; and paying out pensions from each individual’s pension pot (which will follow them from employer to employer). NAERSA will contract out administration and investment services through open procurement.
The Authority will also work with the Department of Social Protection to provide ‘self-service’ functionality. This will allow employees to review investments and manage their contribution options through an online portal. It may use the Revenue Authority’s MyAccount services or a similar tool.
How should employers prepare for auto-enrolment?
The change in dates buys more time for employers to make their assessments on exposure to pension costs as a result of employees being automatically enrolled and therefore more time for budget planning ahead of the new tax year.
Consider resources required to manage the cut-over. January is a logical time to introduce any change that is payroll impacting, as it coincides with the commencement of a new tax year. However, payroll practitioners will also find themselves grappling with new software upgrades, tax year-end activities, new tax-year rollover, compressed payroll deadlines and – of course – staff holidays.
The overwhelming majority of Irish organisations (79%) are either completely unprepared or only partly prepared for the introduction of pension auto-enrolment, according to research published earlier this year.
The ongoing communication strategy
The Department of Social Protection (DSP) has set out a three-phase communication strategy which they will be executing over the next number of months. Expect to see increased media coverage, advertisements, invitations to webinars and explanatory content published on government sites and also on the DSP YouTube channel.
A target population of 800,000 workers, and their employers, need to be considered when it comes to the auto-enrolment process. There’s also a cost-of-employment consideration for businesses. Initially, the employer will be required to contribute just 1.5% of an employee’s salary to the scheme. However, this cost quadruples in stages over a 10-year period.
Given the scale of the scheme, a clear communication and change management strategy will do much to help prepare and land the new policy.
The Department will also be presenting at major events such as the IPASS Annual Conference and Exhibition on 16th May at Croke Park, at which Zellis is the main sponsor.
Key takeaways
- Ireland’s pension auto-enrolment scheme has been further delayed until 1st January 2026, providing additional preparation time for all stakeholders involved.
- The scheme will be administered by the newly established National Automatic Enrolment Retirement Savings Authority (NAERSA), which will collect contributions from employers, employees, and the state.
- Research indicates that 79% of Irish organisations are either completely or partially unprepared for the introduction of pension auto-enrolment, highlighting the need for enhanced readiness efforts.
- Employer contributions will initially begin at 1.5% of an employee’s salary but will increase fourfold over a 10-year period, representing a significant long-term cost consideration for businesses.
- A comprehensive three-phase communication strategy is being implemented by the Department of Social Protection to educate the approximately 800,000 affected workers and their employers about the forthcoming changes.
Get set up successfully for the new system
Need help with the rollout or wish to free up your teams to focus on other work? Zellis will soon be be launching our Pension Auto-enrolment Managed Service to support you.
