Auto-enrolment: your questions answered

At ifac we have continued to share information with our clients about Auto-enrolment, it's mandatory requirement, processes that need to be put in place to prepare and options that are available to employers and eligible staff alike.

Whether you're a farm business who employ seasonal and part-time staff or a larger food agri-business or SME with an employed workforce, this new legislation applies to you.

The Government’s mandatory Auto-Enrolment (AE) retirement savings system, MyFutureFund, comes into effect on 1st January 2026. From this date, all employees aged 23–60 who earn at least €20,000 per year and are not already contributing to a pension will be automatically enrolled. As their employer, you will be required to comply with the scheme and facilitate their pension contributions.

On Wednesday 26th November, ifac hosted a one-hour webinar exploring the full impact of Auto-Enrolment (AE) in Ireland — outlining who it applies to, when it’s due to commence, and how it will work in practice for employers and employees.

Attendance and engagement were excellent, and the volume (and quality!) of questions from attendees reflected just how important and fast-moving Auto-enrolment is.

As a result, we’ve been able to compile a comprehensive Q&A addressing the key themes raised during the session, with clear, practical answers from our panel to help you understand what AE could mean for your business and your staff.

We also know that every business circumstance is different, and additional questions often arise as you begin to assess the impact on your plans for 2026.

If you have any follow-up queries or questions specific to your situation, ifac are here to help. Please get in touch with us directly and a member of our team will help you with your next steps.

In answer to your questions:

I am farming as a company, I'm both an employer and an employee, in my late 60s. Is there any advantage to me enrolling?

An occupational pension may give you the option to extract funds from the company in a tax-efficient manner.

It will depend on service length and salary levels, but worth checking before you reach age 70.

I am working for my husband who is a sole trader, I am aged 58. Do I need to enrol?

You don’t need to do anything, NAERSA will look after this. You are exempt if on Class S or Class M PRSI.

We have some employees for whom we make an annual employer contribution to their own PRSA. How will AE treat this? The employee pays their contribution directly and not via payroll.

The 3 month look back by NAERSA will not see a payroll pension deduction, and employees will automatically be included for AE.

If an employee starts on Auto-enrolment, can they change to an occupational pension?

Yes.

I have one employee and only one part-time earning below €20,000, am I correct in saying AE won’t apply?

Correct, within these thresholds it will not apply to this situation.

Are there any minimum requirements for an employer to comply with Auto-enrolment (i.e. minimum staff levels)? Is there a threshold where an employer does not have to provide Auto-enrolment?

The employer does not make these decisions, only NAERSA does.

Will an employee that has just started and is on a temporary contract for 4 months to cover sick leave be included?

Yes, if the employee meets eligibility criteria.

If an employee has a PRSA not paid by the employer, will they be enrolled in AE because the PRSA is not on payroll?

Yes, this is correct.

How are contributions calculated where employees are paid hourly and the hours vary month to month?

The calculation will be 1.5% of the employee's gross pay.

If an employees salary varies month to month based on commission etc., will the contribution from the employer therefore be variable or is it fixed?

It will be variable as a percentage.

Will an employee's saving pot move with the employee if they are going from private sector to public sector?

Yes, but remember most public sector employments have occupational pension schemes in place.

If an employee opts out in month 7 or 8, who pays back the contributions? The employer or NAERSA?

NAERSA will.

We often hire employees from outside of Ireland - from a look back point of view, how does this work to assess the €20,000 p.a. earnings?

NAERSA will decide after the first 13 weeks.

An employee who is 22 at present and will be 23 on 1st January 2026. Will they automatically be enrolled?

Yes once they are earning €20,000.00 or more

Regarding any employee who is exempt but chooses to opt in, does that then automatically start through payroll as soon as they opt in?

Yes.

If an employee wants to pay more than 1.5% in the first year e.g. 5%, does the employer have to match that 5%?

That is not an option.

If an employee currently pays a contribution, however the employer doesn't, what happens in January 2026?

If contributions are not paid through payroll, the employee will be enrolled.

I've a short-term contract employee due to finish in June 2026. They won't make the €20,000 but will have made the €20,000 in the previous year - they will leave the country in 2026, do they still pay and what happens their contributions?

They contribute and for now, funds stay in the pot and invested for them.

What charges do I tell my employees will apply to AE? Is there an annual management cost by NAERSA?

There are no charges for employees.

Is there a maximum % contribution you can pay an employee through AE from Jan 1st 2026?

1.5%.

Employee aged 59, will be 60 in 2026. They'll be auto enrolled in January 2026, but do they continue after 60th birthday?

They are opted out at 60, but can opt back in.

What happens with student staff who commence work at the end of their academic year, and work for the summer before returning to college in September? Would they be auto enrolled?

If they earned over €20,000.00 and are 23 years old, yes.

You mentioned that the contributions are taken after 6.30pm on pay day - is this the employee or employers contributions?

Both – just like Revenue does.

Can employers get their contributions back in month 7 & 8 if the employee opts out?

Contributions are not refundable for the employer.

What happens the money an employee pays in if they die pre-retirement age?

Their fund goes to their estate.

Do contracts of employment need to be updated to include AE?

Yes, it is advisable to.

How do I go about setting up an occupational pension? Is there a time limit?

Contact a Financial Adviser to help set-up an Occupational Pension or Employer PRSA.

A pension paid through payroll deduction would need to be in place in December to avoid automatic inclusion in AE. But NAERSA have indicated that if a pension is set up after the 1st January AE deadline, that there would be a refund facility if deductions were taken for both the pension scheme and AE in the same month.

If you have 2 jobs, i.e. 1 at €15,000/year, 1 <€20,000/year, will you be enrolled in AE on both?

Yes, you will.

Can I be included in auto-enrolment when I don't earn the mininium? I only work 1 day a week.

Yes, you can opt in. You will need to register for the employee portal in January 2026.

If I join a company pension in January can I leave auto-enrolment the following month or do I have to stay until June?

You will need to wait until months 7 or 8.

If you opt out, will you get a refund?

The employee does, but not the employer or the state.

Directors (PRSI class S) are not included in this? What options do they have?

Directors in this category (provided they are in receipt of a salary) can set-up an occupational pension.

Directors on PRSI class A1 and pension contributions do not show on payslip. Will we automatically be enrolled even though we have several pension schemes in place?

Pension contributions need to show on the payslip, otherwise automatic enrolment applies.

Will ifac payroll work with payroll clients to set up a variable DD?

Ifac will work with clients to register and put in place a VDD.

Are travel & subsistence added with gross pay for pension?

No.

Will PRSI contributions change?

No.

Download our Auto Enrolment guide

Everything you need to know to prepare your business for Auto Enrolment in January 2026 – explained simply and clearly.

Download

Is Auto Enrolment right for your business?

Before defaulting to AE, consider your business’s needs:

Do you already offer pensions?
If so, you may not need AE, depending on the scheme’s structure and contribution levels.
Need more flexibility?
AE is rigid. A PRSA or occupational pension may offer:
- Salary sacrifice options
- Investment choice
- Tailored tax planning
High turnover staff?
AE is ideal for high-churn roles.Stable teams might benefit more from a bespoke pension plan.
Want to retain key staff?
Tailored pensions allow higher employer contributions, generous tax-free lump sums, and early retirement options.

Why consider a PRSA or occupational pension instead?

Up to 40% tax relief on employee contributions

AVC's permitted

Early retirement possible, from age 50

Larger tax-free lump sums (up to 1.5x salary)

Investment strategies based on employee risk profiles

What employers should do now

Review your current pension arrangements: Ensure they meet or exceed AE requirements.

Communicate with employees: Help your team understand what’s changing and why.

Plan for contribution increases: Employer contributions will rise steadily over a decade, budget accordingly.

Seek advice: Not sure if AE is right for your business? Our HR & Payroll team can help you evaluate your options.

Talk to Martin Glennon

Head of Financial Planning01 4277400 martinglennon@ifac.ie Linkedin