Auto-Enrolment: What Employers Need to Know Ahead of 2026
The Automatic Enrolment Retirement Savings System Act 2024 is set to come into effect in January 2026, marking one of the most significant reforms in Irish pension legislation in decades. Its purpose is simple but far-reaching: to ensure that workers without access to an occupational pension will automatically begin saving for retirement.
Currently, around 800,000 employees are in non-pensionable employment. From January 2026, those employees will either join their employer’s pension plan or be automatically enrolled in the new national scheme.
How Auto-Enrolment Will Work
Contributions: The scheme will begin with contributions of 1.5% from employers, 1.5% from employees, and a 0.5% top-up from the Government. This 3.5% combined contribution will gradually rise to 14% over ten years.
Eligibility: Employees aged 23–60 earning more than €20,000 annually will be automatically enrolled.
Retirement Age: Pension benefits can only be accessed from age 66, with no early retirement option except in cases of ill health.
What This Means for Employers
While the reform is positive for employees, it also places new responsibilities on employers. Companies must review and update their employment manuals, contracts, and policies to ensure compliance. Failing to do so could leave employers exposed to disputes or claims, particularly around issues of equality and discrimination where multiple pension schemes operate without clear documentation.
Beyond Pensions – Other Legislative Updates
Auto-enrolment is not the only area where employers need to stay compliant. Recent legislative updates around Remote Working and Domestic Violence Leave also require policy reviews and contract updates. Businesses that don’t act early may find themselves vulnerable to claims or penalties.
Why This Matters
Pensions are considered deferred pay, meaning changes in access, entitlements, or fairness can give rise to discrimination claims. Employers who are proactive in preparing now will not only ensure compliance but also protect themselves from unnecessary disputes in 2026 and beyond.
If you would like to ensure your business is fully compliant with auto-enrolment and other recent legislative changes, get in touch with us today.
For help and support contact us at FT Consultants today for all your workplace needs.
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