The auto-enrolment (AE) retirement savings scheme in Ireland will commence from 30 September 2025, the Irish government has confirmed.

In the government’s Budget, Minister for Social Protection of Ireland, Heather Humphreys, announced the date the AE would come into effect, stating that it would help more than 800,000 workers save for retirement.

Under the scheme, people aged between 23 and 60 who do not have a pension scheme and are earning more than €20,000 a year will be auto-enrolled into the new system.

For every €3 a worker puts into their auto-enrolment pension scheme, their employer will also contribute €3 and the state will top it up by €1.

Contribution rates will increase gradually as the scheme progresses, with employees contributing 1.5 per cent of their gross salary during the first three years of enrolment.

This will rise to 3 per cent from the fourth year, to 4.5 per cent from the seventh year, before reaching the top employee contribution rate of 6 per cent from the 10th year.

Employer and state contributions rise in line with this, resulting in total contributions of 14 per cent of an employee’s gross salary from the 10th year onwards.

“Contributions will be fixed at a set rate, and it will not be possible for you or your employer to pay more or less than this rate,” the Department of Social Protection.

“Contributions will be calculated on your gross earnings, so anything included in the gross pay field of a payroll file will be assessable. Contributions will not, however, be levied on any gross pay over €80,000.”

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