Auto-Enrolment Retirement Savings Scheme: FAQs (update)

7 January 2026 4 min read

By Naomi Pollock, Laoise McMahon and Roisin O'Brien

At a glance

The Auto-Enrolment Retirement Savings Scheme (AE Scheme) began on 1 January 2026 for employees without qualifying pension contributions via payroll.
Employees aged 23–60 earning EUR20,000 or more annually will be automatically enrolled unless they already meet minimum pension contribution requirements.
Employer contributions start at 1.5% of gross pay and will rise to 6% over ten years; employees must also contribute.
Employers must register on the National Automatic Enrolment Retirement Savings Authority (NAERSA) portal, notify employees of enrolment, and ensure timely contributions through payroll.
Non-compliance can lead to fines up to EUR50,000, imprisonment, and reputational harm as NAERSA will publish offenders.

Update: 7 January 2026

The below information has been amended to reflect updated information which came into effect on 1 January 2026.

The AE Scheme is a new state-run pension savings scheme introduced for certain employees who are not paying into a pension via payroll. The scheme came into effect on 1 January 2026.

Employee eligibility

1. Which employees will be automatically enrolled into the AE Scheme?

Not all employees will be automatically enrolled into the AE Scheme. Employees will be automatically enrolled if they:

are between ages 23 and 60;
earn EUR20,000 or more per year; and
are not paying into a work or private pension through payroll, or, are paying into a work or private pension scheme that does not meet the minimum contributions required – see question 4 in the Employer Obligations section below.

Employees who do not meet criteria (a) or (b) but are not paying into a work or private pension through payroll, may choose to opt into the scheme.

Once there is a pension contribution from the employer or the employee, paid through payroll, that meet the minimum required contributions, employees will not be enrolled in the AE Scheme.

2. Will the employee still be auto enrolled if the employer offers a more generous scheme?

If the employer offers a more generous pension scheme, but the employee has yet to opt in to it, that employee will still be auto enrolled into the AE Scheme, provided they meet eligibility requirements and have not already opted out.

Employer obligations

1. What do employers have to contribute?

The contribution rates for auto-enrolment will be phased in over the first ten years of the operation of the scheme:

Employer contributions will start at 1.5% of gross pay.
In year four they will increase to 3%.
In year seven they will increase to 4.5%.
In year ten they will increase to the maximum rate of 6%.

2. Does the employer have to inform employees that they have been auto enrolled?

Yes, employers must inform their employees when they are first enrolled.

3. When must the contributions be paid?

Contributions must be paid at the same time as the employee is paid, and the contribution information must be provided by the new government body, NAERSA.

4. Does auto enrollment legislation stipulate minimum contribution rates for employees or employers in relation to private pension schemes?

Yes. At the end of December 2025, the government prescribed minimum contribution rates for employers and employees who are paying into a company or private pension scheme via payroll.

For an employee contributing to a defined contribution occupational pension scheme to be exempt from auto-enrolment, the total contributions being paid into that scheme must amount to at least 3.5% of employee’s gross pay, of which at least 1.5% must be made by the employer (subject to a maximum annual employer contribution of EUR1,200 and a maximum annual total contribution of EUR2,800).

If these minimum contributions are not met, the employee is not exempt from auto-enrolment.

Operation of the scheme

1. How does auto-enrolment work?

The NAERSA administers the auto-enrolment scheme, leaving minimum administrative work for the employer. The NAERSA operates an online portal for employees, to manage employee opt-outs, opt-ins, suspension of contributions and re-enrolment.

All employers must register on the NAERSA portal and complete their employer profile regardless of whether their employees are within the scope of auto-enrolment. The portal opened on 1 December 2025. Any employers who have not yet registered should do so as soon as practicable.

2. How will the contributions be collected?

Once an employee has been identified as eligible for auto-enrolment, the NAERSA will send the employer an Automatic Enrolment Payroll Notification (AEPN) through payroll software.

The AEPN will notify the employer of the contribution amounts the employer and the employee will need to pay as a percentage of gross earnings. The contributions will be visible on the employee's payslip.

Penalties and sanctions

1. What happens if the employer does not comply with their contribution obligations under the scheme?

Failure to pay contributions or deducting contributions from an employee's gross pay but failing to pay the corresponding contribution within the prescribed time, will lead to the employer having to pay the NAERSA the amount they failed to pay with interest.

If an employer prevents employees from opting in to the AE Scheme, or forces employees to opt-out or suspend contributions, the employer may be subject to prosecution and will be subject to fines and penalties.

For example, certain offences will on summary conviction be subject to a Class A fine or imprisonment for up to 6 months (or both). Other offences could attract a fine not exceeding EUR50,000 or imprisonment for a term not exceeding three years or both.