Ireland’s auto-enrolment bill is set to be approved by Cabinet later today, according to reports.

The Automatic Enrolment Retirement Savings System Bill will be brought to the Cabinet for approval by Irish Social Protection Minister, Heather Humphreys, today, 27 March to formally seek approval for the bill.

The scheme is expected to begin towards the end of 2024, with those aged between 23 and 60 earning more than €20,000 per year, and not currently paying into a work or private pension through payroll, enrolled into the scheme – over 800,000 workers are expected to be eligible. However, there will be the opportunity to opt out of the scheme.

The scheme will be run and managed by a new body set up by the Department of Social Protection and it will be supervised by the Pensions Authority.

Contributions into the scheme will start at 1.5 per cent of salary for both the employer and employee in years one to three, increasing to 3 per cent each in years four to six, rising to 4.5 per cent in years seven to nine, before reaching 6 per cent each in 10 years’ time.

The state will also top-up €1 for every €3 a member pays in. Contributions will be calculated up to a maximum gross salary of €80,000. There are no plans currently to allow people to make additional contributions, but the Irish government has not ruled this out for the future.

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