Key Takeaways
- • Ireland's MyFutureFund auto-enrollment scheme, passed in July 2024, will compel eligible employees aged 23 to 60 earning at least EUR 20,000 per year into a central government-run defined contribution pension, with a start date now set for 1 January 2026 (Lockton Global Benefits).
- • Contributions phase in over ten years from 1.5% each for employee and employer in 2026 to 6% each by 2035, with the government adding EUR 1 for every EUR 3 contributed by the employee.
- • Existing employer schemes are exempt only if they meet minimum levels of the lesser of 3.5% of gross salary or EUR 2,800 total, and the lesser of 1.5% or EUR 1,200 from the employer, under regulations signed on 22 December 2025 and effective 1 January 2026.
- • The exemption regulations were introduced despite significant industry opposition, forcing employers with below-threshold schemes to uplift contributions or move affected staff into MyFutureFund, with no offset mechanism available.
- • Approximately 750,000 private-sector employees who currently lack workplace pension coverage are the primary target, concentrated in tourism and retail.
Summary
The Irish government passed legislation in July 2024 establishing mandatory automatic enrollment of eligible employees into MyFutureFund, a central state-run defined contribution pension administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA). According to Lockton Global Benefits, the scheme was designed to address pension provision for roughly 750,000 employees earning EUR 20,000 or more who do not participate in a workplace pension, largely in lower-paid sectors such as tourism and retail. The scheme is not intended to replace existing pensions. Management costs are capped at 0.5% of assets.
The launch date was originally 30 September 2025 but was postponed by three months to 1 January 2026 to align with the standard tax year and give employers and payroll providers more preparation time. Employees may choose among four investment funds ranging from conservative to higher risk, with a default fund applied if no choice is made. Employees who opt out after six months of enrollment are automatically re-enrolled every two years.
Contribution rates start at 1.5% of gross salary each for employee and employer in 2026, rising by 1.5 percentage points every three years to 6% each by 2035. The government contributes EUR 1 for every EUR 3 from the employee, starting at 0.5% and rising to 2%. Employer and government contributions apply up to a gross salary of EUR 80,000.
The exemption framework changed late in the process. Initially, any contribution above zero was expected to exempt an employee from MyFutureFund. The Automatic Enrolment Retirement Savings System Regulations (Amendment) (Section 52) Regulations 2025 instead set minimum levels: total contributions of the lesser of 3.5% of gross salary or EUR 2,800 annually, and employer contributions of the lesser of 1.5% or EUR 1,200. Lockton reports the regulations were introduced unexpectedly, despite significant industry opposition, and took effect 1 January 2026. The Minister for Social Protection said the standards are intended to ensure exempt schemes build sufficient retirement savings, and NAERSA will oversee compliance through engagement with employers over a three-month assessment window rather than penalties.
Lockton advises employers to assess whether contribution tiers fall below the minimums, then decide whether to uplift existing schemes or default affected employees into MyFutureFund. Employers that keep contributions below the minimum must enroll those employees in MyFutureFund, and cannot offset that obligation against existing scheme contributions. Employers without a plan are advised to weigh a company scheme or PRSA against relying on the state system, since employer plans can offer more design flexibility and voluntary contributions.
The launch date was originally 30 September 2025 but was postponed by three months to 1 January 2026 to align with the standard tax year and give employers and payroll providers more preparation time. Employees may choose among four investment funds ranging from conservative to higher risk, with a default fund applied if no choice is made. Employees who opt out after six months of enrollment are automatically re-enrolled every two years.
Contribution rates start at 1.5% of gross salary each for employee and employer in 2026, rising by 1.5 percentage points every three years to 6% each by 2035. The government contributes EUR 1 for every EUR 3 from the employee, starting at 0.5% and rising to 2%. Employer and government contributions apply up to a gross salary of EUR 80,000.
The exemption framework changed late in the process. Initially, any contribution above zero was expected to exempt an employee from MyFutureFund. The Automatic Enrolment Retirement Savings System Regulations (Amendment) (Section 52) Regulations 2025 instead set minimum levels: total contributions of the lesser of 3.5% of gross salary or EUR 2,800 annually, and employer contributions of the lesser of 1.5% or EUR 1,200. Lockton reports the regulations were introduced unexpectedly, despite significant industry opposition, and took effect 1 January 2026. The Minister for Social Protection said the standards are intended to ensure exempt schemes build sufficient retirement savings, and NAERSA will oversee compliance through engagement with employers over a three-month assessment window rather than penalties.
Lockton advises employers to assess whether contribution tiers fall below the minimums, then decide whether to uplift existing schemes or default affected employees into MyFutureFund. Employers that keep contributions below the minimum must enroll those employees in MyFutureFund, and cannot offset that obligation against existing scheme contributions. Employers without a plan are advised to weigh a company scheme or PRSA against relying on the state system, since employer plans can offer more design flexibility and voluntary contributions.
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