Auto-enrolment checklist for employers

What is auto-enrolment?

Auto-enrolment (AE) is a government initiative aimed at increasing pension provision among employees in Ireland. The launch date is confirmed for 1st January 2026 – but employers need to start planning now.

The most recent figures provided by the Central Statistics Office as part of a Labour Force survey indicate that nearly one third of workers have no private pension cover and will depend on the State pension in retirement*. This is estimated to amount to 800,000 employees across the country. The new auto-enrolment retirement savings system is designed to provide those employees with a supplementary pension which together with the State pension will provide them with a better income in retirement.

Employers nationwide must get ready for the new employment regulations, which require them to contribute to a pension for employees who earn over €20,000, are aged between 23 and 60, and are not currently part of a workplace pension plan.

Where an employer does not meet these new obligations, there is the potential for fines or even prosecution for non-compliance, so this is a responsibility not to be taken lightly. In preparation for the January 1st deadline, employers have some important decisions to make as to how they wish to provide a pension plan for their employees.

We have prepared the checklist below as a guide to how to prepare for auto-enrolment.

Step 1 – Assess the pension gap in your business

Assess your exposure to the new AE pension legislation by identifying employees in scope for Auto Enrolment. Any employee aged between 23 and 60 and earning more than €20,000, who is not paying into a workplace pension by salary deduction or benefitting from an employer contribution into a workplace pension will be automatically enrolled on January 1st 2026.

Step 2 – Speak with a financial advisor

Engage with a Financial Advisor to understand the options available to you as an employer to provide your employees with the best available pension arrangement. A Financial Advisor can provide valuable insights and options tailored to meet both your business needs and those of employees.

Step 3 – Consider employees current status

Where a workplace pension plan exists consider any employees not currently included in your workplace pension plan. You can either:

1. Include these employees in a Master Trust or Personal Retirement Savings Account (PRSA). This could be an existing Master Trust or PRSA in which some employees are already included or a new arrangement with a provider of your choice.
2. Allow these employees to be automatically enrolled into the new State run scheme.

Step 4 – Budgeting

Evaluate the financial impact of AE on your business. This includes understanding the costs associated with employer contributions and any administrative expenses.

Step 5 – Review the design of your current workplace pension

Where a workplace pension plan exists assess if it satisfies the new AE requirements. If not, adjustments may be necessary. As part of this process, you should consult with your pension provider and a Financial Advisor.

Step 6 - Employee communication

Develop a communication plan to inform employees about Auto-Enrolment, including how it works, the benefits, and what it means for them. Clear communication is crucial to ensure employees understand and are prepared for the change.

Step 7 - Ensure payroll systems are up-to-date

Updates to payroll software will be required to administer Auto Enrolment. Ensure your payroll systems are capable of handling AE before it goes live. Engage with Payroll providers where required.

Step 8 – Register through employer portal for AE

In advance of the go live date, impacted employers will be required to register through an AE employer portal. This portal will facilitate the payment of employer and employee contribution. It is anticipated that different methods will be available, including variable direct debit.

Employers will be able to set this up on the employer portal. More information will be made available closer to launch date.

Step 9 – Contracts of employment and employee handbooks

Review contracts of employment for new joiners and Employee Handbooks to make sure they allow for the impact of pension AE. Seek legal advice or advice from a HR professional where necessary.

Step 10 – Training and support

Familiarise yourself with the new employer responsibilities associated with AE. This may include attending in-person presentations, online webinars, visiting the AE page on gov.ie and seeking advice from professionals in the relevant areas highlighted above.

By taking these steps, Irish employers can better prepare for the implementation of AE and ensure a smooth transition for both the business and its employees. This may seem like an additional stress on your business, but with our help and support, you don’t have to do it alone. Speak to your company pension advisor or visit zurichcorporate.ie

Source: *Overall Pension Coverage Pension Coverage 2024 - Central Statistics Office