Table of contents What is auto-enrolment and when does it start? Who meets auto-enrolment criteria? How does the scheme work? What do employees need to do? How does the calculation work? How can employees manager their savings? How does Sage Payroll support auto-enrolment? What is auto-enrolment and when does it start? Auto-enrolment is a new retirement savings scheme launching in Ireland on 1 January 2026. It helps employees without workplace or private pensions save for retirement, without requiring employers to set up occupational pension schemes. For full details on the new retirement savings system, view the following guidance from Revenue.
Who meets auto-enrolment criteria? Employees qualify if they: - Are between 23 to 60 years old
- Earn €20,000 or more annually across all employment
 NOTE: This is calculated over a 13 week period and is forecast over the full year. - Don’t have supplementary pension coverage
For example, occupational pension, personal retirement savings account (PRSA), retirement annuity contract (RAC), pan-European pension product (PEPP) Employees outside these criteria can opt in voluntarily.
How does the scheme work? The National Automatic Enrolment Retirement Savings Authority (NAERSA) will manage the scheme. It will: - Uses Revenue payroll data to identify eligible employees
- Collect contributions from employees, employers, and the State
- Manage investment of funds with a default strategy and optional alternatives
- Apply a “pot-follows-member” model so savings move with employees across jobs
What do employers need to do? Employer will: - Sign up to use an online portal to manage and monitor contributions
- Have minimal administrative tasks as NAERSA handles enrolment and eligibility
- Avoid assessing employee eligibility or setting up pension schemes
- Transfer deduction amounts to NAERSA via SEPA
How does the calculation work? Contributions are based on the employees Gross pay and are deducted from their Net pay. Matching payments are made from the employer and State contributions. You can find full details on rates and timelines at gov.ie.
How can employees manage their savings? Employees use an online portal to: - Opt-out or suspend contributions
- Re-enrol if they choose
- Monitor their savings and investment performance
How does Sage Payroll support auto-enrolment? Your program will automatically update to allow you to retrieve and send pension information to NAERSA. You’ll simply: - Retrieve an Automatic Enrolment Pension Notification (AEPN), similar to an RPN, so you enrol the correct employees
- Submit contributions to NAERSA
No setup required, your software handles the rest. Once enrolled, the program will automatically calculate pension contributions based on the employee’s Gross pay and display these on their payslips and other payroll reports.
Bespoke auto-enrolment pension training We fully support the upcoming auto-enrolment changes in our Payroll solutions, including employee enrolment, contributions, and compliance. To help you prepare, we offer bespoke training covering: - Understanding the legislation and getting prepared
- Guide through implementation with hands-on, product-specific sessions
To find out more about these tailored sessions, you can call us on 0191 479 5955 (and choose option 3), and we’ll be happy to help. Webinars We also offer free webinars where our expert-led sessions will walk you through the latest in product features. They’ll also give you practical tips and help you master your first pay run. These sessions start from the 8 December. Register now. |