Auto-Enrolment in Ireland (MyFutureFund): What Employers Need to Know for 2026
From 1 January 2026, Ireland’s new auto-enrolment pension system, known as MyFutureFund, comes into effect. This change represents one of the most significant payroll updates Irish employers will face in 2026. Importantly, it affects many businesses that do not currently operate a pension scheme.
Under auto-enrolment, eligible employees will begin saving for retirement automatically. As a result, payroll deductions, employer contributions, and State top-ups will apply through a central system. For employers, this means new payroll processes, additional compliance obligations, and increased employment costs that require advance planning.
In this guide, we explain how MyFutureFund works, who it applies to, and what Irish employers should do now to prepare.
What Is MyFutureFund Auto-Enrolment?
MyFutureFund is Ireland’s automatic enrolment retirement savings scheme. The Government introduced it under the Automatic Enrolment Retirement Savings System Act 2024 to increase pension coverage among workers without an occupational pension.
Under the scheme, eligible employees join a retirement savings plan automatically unless they actively opt out. Payroll handles employee contributions, while employers make matching contributions. In addition, the State provides a top-up to support long-term savings.
Although the system is centrally administered, employers still play a key role. Specifically, they must operate payroll deductions correctly, apply employer contributions, and communicate clearly with employees.
Who Will Be Automatically Enrolled?
From 1 January 2026, employees will be automatically enrolled if they:
Are aged between 23 and 60
Earn more than €20,000 per year
Do not already contribute to a pension through payroll
Employees who do not meet these criteria may still opt in voluntarily, depending on their circumstances.
Because the system relies on Revenue payroll data, employers must keep payroll records accurate and up to date. Otherwise, eligibility errors may arise.
In addition, employees who opt out will be re-enrolled automatically after a set period if they continue to meet the criteria.
Employer Payroll Obligations Under Auto-Enrolment
Auto-enrolment introduces new payroll responsibilities for employers.
In practice, employers must:
Automatically enrol eligible employees
Deduct employee pension contributions through payroll
Pay matching employer contributions
Remit contributions on time through the central system
Communicate clearly with employees about enrolment and opt-out options
Although the State centralises administration, employers remain responsible for payroll accuracy and timely payments. Therefore, failure to comply may lead to penalties.
Contribution Rates and Phase-In Period
MyFutureFund contributions will increase gradually over time.
Initially:
Employees contribute 1.5% of gross pay
Employers match this with a 1.5% contribution
The State provides a top-up to boost employee savings
Over time, contribution rates will rise in stages. As a result, employers can manage costs gradually instead of absorbing a sudden increase.
Even so, employers should include these contributions in payroll budgets and long-term cashflow planning.
How Auto-Enrolment Fits into Payroll in 2026
Auto-enrolment contributions will sit alongside existing payroll deductions such as PAYE, PRSI, and USC.
Therefore, employers should expect to:
Ensure payroll software supports auto-enrolment deductions
Review payroll processes before the first payroll run of 2026
Monitor employer payroll costs as contribution rates increase
Auto-enrolment also coincides with other payroll pressures, including minimum wage increases and higher PRSI costs. Consequently, employers should review payroll as a whole rather than treating auto-enrolment in isolation.
Common Auto-Enrolment Mistakes Employers Should Avoid
As with many new payroll obligations, mistakes often arise from assumptions rather than complexity.
Common errors include:
Assuming payroll software updates automatically
Incorrectly identifying eligible employees
Overlooking employer contribution obligations
Communicating poorly with staff about opt-out rights
Underestimating the cashflow impact
By addressing these areas early, employers can significantly reduce compliance risk.
What Employers Should Do Now
Although auto-enrolment begins in January 2026, employers should prepare well in advance.
Practical steps include:
Reviewing employee eligibility based on age and earnings
Confirming payroll systems can handle auto-enrolment deductions
Factoring employer contributions into payroll budgets
Preparing clear employee communications
Seeking advice where payroll or director remuneration is complex
Early preparation allows time to fix issues without unnecessary pressure.
How We Can Help
At Richard OShea Consultancy, we support Irish employers with payroll compliance and employer obligations.
We can help with:
Reviewing payroll readiness for auto-enrolment
Identifying eligible employees
Assessing payroll cost impacts
Integrating auto-enrolment with PAYE, PRSI, and USC processes
Providing ongoing payroll and employer compliance support
Our approach is practical and focused on helping businesses meet obligations while managing cost and risk effectively. Learn more about our payroll services.
Final Thoughts
MyFutureFund auto-enrolment marks a major shift in Ireland’s payroll landscape. While the State centralises administration, employers still carry responsibility for payroll operation, contributions, and compliance.
With other payroll pressures already in place for 2026, employers who prepare early will be in a much stronger position. By reviewing payroll systems now, businesses can reduce risk, avoid last-minute issues, and plan cashflow more effectively.
If you would like help preparing for auto-enrolment or reviewing your payroll obligations for 2026, get in touch to discuss your situation. Contact us here.
This article is intended for informational purposes only and should not be considered a replacement for professional advice. The author(s) disclaim any liability for actions taken or not taken based on the content of this document. It is recommended to seek tailored advice before making any decisions related to the topics discussed in this article.
