NOTE: This guidance explains how Sage 50 Payroll Ireland applies auto-enrolment rules. It doesn’t replace guidance from Revenue or NAERSA. Contact them for advice on legislation or eligibility. 

What makes an employment exempt from auto-enrolment?

An employment meets exemption rules when you record qualifying pension contributions in Sage 50 Payroll Ireland and report them to Revenue.

NAERSA can still enrol the employee in another employment when no qualifying pension appears for that job.

Minimum contribution standards for exemption

An existing occupational pension scheme qualifies for auto-enrolment exemption only when it meets the minimum contribution standards.

For defined contribution schemes, current guidance states that:

• Total pension contributions must be at least 3.5% of the employee’s gross pay

• The employer must contribute at least 1.5%

• NAERSA assesses contributions in line with the €80,000 earnings threshold used for My Future Fund

For defined benefit schemes, exemption is based on continued accrual of long-service benefits.

These standards apply to the introductory auto-enrolment contribution rates and can change as the national scheme evolves.

How NAERSA checks for qualifying pensions

NAERSA uses your payroll submissions to assess each employment. Sage 50 Payroll Ireland reports pension deductions for that employment, and NAERSA uses this data to determine the exemption.

NAERSA sets the employment as exempt when you record a qualifying pension deduction and report it to Revenue.

If no qualifying pension deduction appears, NAERSA treats that employment as without a pension and can enrol the employee for that employment.

If the employee paused their company pension

If a pension deduction stops in Sage 50 Payroll Ireland, NAERSA treats that employment as without a pension and can enrol the employee.

When pension contributions restart, NAERSA sends an AEPN instructing you to stop auto-enrolment contributions for that employment.

The employee remains in the national scheme. NAERSA only changes contribution instructions for that specific employment.

If the employee has multiple jobs

Pension activity in one employment doesn't exempt you from another job.

Example:

• The employee pays pension contributions in Job A
• Job A is exempt from auto-enrolment
• Job B has no pension deduction
• NAERSA can enrol the employee for Job B

NAERSA assesses each employment separately.

Private or external pensions

If pension contributions don't appear in Sage 50 Payroll Ireland, NAERSA can't detect them.

Private or external pensions exempt a job only when you also report those contributions to Revenue through the payroll submission.

Who decides the exemption?

You don't decide the exemption. NAERSA assesses each employment using the data in your submissions from Sage 50 Payroll Ireland.

Further questions?

We can help you understand how Sage 50 Payroll Ireland processes auto-enrolment data. If you need guidance on the legislation or your responsibilities as an employer, contact Revenue or NAERSA. They provide the most accurate advice for your situation.