Auto-enrolment eligibility and opting in and out

Summary

Who qualifies for auto-enrolment and what choices employees have when using Sage 50 Payroll Ireland. It covers opting in, opting out, and suspending contributions.

Answers

Who qualifies for auto-enrolment?

Employees qualify if they are:

Aged 23–60
Earning €20,000 or more annually across all employments
Not already in a qualifying pension

A qualifying pension includes:

An occupational pension
A personal retirement savings account (PRSA)
A retirement annuity contract (RAC)
A pan-European pension product (PEPP)

Can employees opt in?

Yes. Employees outside the age or earnings rules can opt in through the employee portal. NAERSA applies the same contribution rules to opted-in employees.

When can employees opt out?

Employees can opt out only during set windows:

Months seven and eight after enrolment
Months seven and eight after a contribution rate change

The opt-out window follows the employee. It doesn't reset when they change jobs.

Who performs the opt-out?

Only the employee can opt out. Employers can't opt out on their behalf. When an employee opts out, NAERSA sends an auto-enrolment payroll notification (AEPN) instructing you to stop contributions.

Can employees suspend contributions?

Yes. Employees can suspend contributions through the employee portal.

Suspension:

Happens outside the initial participation period
Lasts one or two years
Doesn't refund contributions

When suspension starts or ends, NAERSA sends instructions for payroll to process.

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, we offer bespoke training covering:

Understanding the legislation and getting prepared
Guide through implementation with hands-on, product-specific sessions

Want training tailored to your needs? Leave your details, and we’ll get in touch.