Auto-Enrolment in 2026
2026 and Auto-Enrolment and Business Owners
From 1 January 2026, auto-enrolment (AE), will become a reality for Irish employers. This is not a proposal or a plan on paper. It is happening, and every business with eligible staff will need to comply. While the scheme offers a straightforward way to get employees saving for retirement, it also brings new responsibilities for employers.
In this post, we aim to set out what AE means for your business, where the challenges lie and why some companies are deciding to go beyond the minimum.
Employers will need to enrol workers into AE if they:
- Are aged between 23 and 60.
- Earn more than €20,000 per year.
- Do not already have a pension contribution showing on their payslip.
If a worker fits these criteria, they must be included in the scheme unless they choose to opt out after six months. Even then, they must be re-enrolled every two years.
Your role as an employer under AE includes:
- Identifying eligible employees.
- Automatically enrolling them in the scheme.
- Deducting contributions from payroll.
- Matching employee contributions, starting at 1.5% of salary.
- Remitting contributions to the central system.
These responsibilities are not optional. Failing to comply could result in penalties.
The contribution structure
The scheme starts small but ramps up over time:
- Year 1 to 3: 1.5% each from employer and employee, with a state top-up of €1 for every €3 contributed by the worker.
- Year 4 to 6: 3% each.
- Year 7 to 9: 4.5% each.
- Year 10 onwards: 6% each.
This is a meaningful commitment. By 2036, a business will be contributing 6% of salary for every eligible employee, whether or not they value the scheme.
Employers will not be responsible for managing investment choices or scheme administration – this will be handled centrally by the new Central Processing Authority.
Pros and cons for employers
There are clear positives. AE ensures your staff are saving for retirement. Contributions are predictable and the system is designed to be low cost. The 25% state top-up is attractive for lower earners, often better than standard tax relief. However, there are also drawbacks. The scheme is one-size-fits-all.
Employees will be asked to make investment choices with no advice or guidance, which can cause confusion and disengagement. Contributions are low for anyone starting later in their career and those on higher incomes may find the top-up less generous than existing company pension tax relief.
From an employer’s perspective, AE ensures compliance but does little to differentiate your benefits package. It also creates extra administrative duties that can become complicated over time (especially as people opt out, only to be automatically re-enrolled).
Why some businesses are looking at alternatives
Many employers we speak to are treating AE as the nudge needed to reassess their pension offering. A company pension scheme gives more flexibility, stronger tax treatment for higher earners and better engagement opportunities for staff.
Offering a company scheme instead of relying solely on AE can help you:
- Attract and retain talent in a competitive market.
- Provide higher contributions or matched options as part of your reward strategy.
- Deliver professional advice and engagement, rather than leaving employees to figure it out alone.
The Inevitable
AE is a legal requirement, but how you approach it is up to you. You can meet the minimum standard, or you can use this as an opportunity to enhance your employee benefits. Whichever route you choose, the time to prepare is now.
AE is giving many businesses the option to complete and stand out from their competitors with regards to staff pensions. Many are choosing to take control by setting up their own pension schemes, thus exempting them and their staff from the AE scheme.
We can help them to set up a company pension and then provide employees with the engagement and support as mentioned above. We work with all of the pension providers in Ireland, which means we can get you the best scheme for your business and your employees.
Lynx Engagement and Support Services
We’re here to support your team and help ease the administrative burden for your organisation. Every company we work with will have different needs. This can include:
- Run in person or online talks to inform and engage your employees about what AE is and the benefits of it…. before the money starts to disappear from their payslips in January!
- Help them to understand the process and their option to opt out, if they really do not want to participate.
- Explain to your employees in plain, simple terms, the investment side of pensions and the investment choices that they will be asked to make by AE or whatever pension option you provide.
- Provide 1-1 sessions for those looking for more support around their investment choice.
With the government’s new My Future Fund auto-enrolment scheme on the way, there has never been a better time to take control of your financial plan.
Because good advice is never one-size-fits-all. It is built around you.
Who We Work With
We support:
- Business owners who want to offer more than salary.
- HR teams preparing for auto-enrolment.
- Employers rolling out pension schemes for the first time.
- Managers who want practical help for staff struggling with money.
Whether you’re a small business or a larger team, we’ll help you find the right approach.
Why work with Lynx Financial Services?
We’ve been advising people on financial matters for decades. We’re regulated by the Central Bank of Ireland and proud members of Brokers Ireland.
You won’t find a hard sell or complicated jargon. We’re here to help people make better decisions about money, one step at a time.
Get Started
Financial wellbeing doesn’t need to be flashy. It just needs to be honest, relevant and shared. When it’s done right, it makes a lasting difference. If you want to offer something that’s genuinely useful to your team, financial wellbeing is a good place to start.
Helping You Plan for Today, Tomorrow and the Unexpected
At Lynx Financial Services, we keep things simple. No complicated jargon. Just clear, practical guidance to help you plan your pension, manage your investments and protect your future. You have worked hard to build your future. Now it is time to make the most of it.
With the government’s new My Future Fund auto-enrolment scheme on the way, there has never been a better time to take control of your financial plan.
Because good advice is never one-size-fits-all. It is built around you.
Your financial security is our priority and as a member of Brokers Ireland regulated by the Central Bank of Ireland you can trust that you’re in safe hands. Wherever you are in life, whatever your financial ambitions – we’re here to help.
📩 Get in touch for a no-pressure chat about what might work for your business.