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Auto Enrolment FAQs for Irish Employers

  1. What is Auto Enrolment? Auto Enrolment is Ireland’s new retirement savings scheme to help employees without pensions save for the future. Employers, employees, and the government contribute to a workplace pension plan.
  2. Who needs to be enrolled? Employees aged 23-60, earning over €20,000 per year, and not in an existing pension scheme must be automatically enrolled.
  3. When does Auto Enrolment start? It’s expected to roll out in 2025. We’ll keep you updated on exact dates as they’re confirmed.
  4. What are the contribution rates? Contributions start low (1.5% of gross earnings) and gradually increase over 10 years to 6% from employees, 6% from employers, and a government top-up.
  5. How does it affect my payroll? You’ll deduct employee contributions and add your own through payroll. EasyPayroll’s system makes this seamless with automated calculations and reports.
  6. Can employees opt out? Yes, employees can opt out after a minimum enrolment period (6 months) but may be re-enrolled later if still eligible.
  7. What happens if I don’t comply? Non-compliance could lead to fines or penalties. EasyPayroll ensures your payroll meets all Auto Enrolment rules.
  8. Is it expensive for my business?Employer contributions are manageable, starting low and phasing in. Our cost-effective payroll services keep your admin costs down.
  9. Why choose EasyPayroll for Auto Enrolment? We’re Ireland’s payroll experts, with smart tech to handle Auto Enrolment effortlessly, saving you time and ensuring compliance.
  10. How do I get started? Contact EasyPayroll for a quick quote! We’ll set up your payroll to handle Auto Enrolment smoothly from day one.

Auto Enrolment Cost Example for an Irish Employer

Here's a practical example of the employer contributions under Ireland's Auto Enrolment scheme for an employee earning a fixed gross salary of €50,000 per year. We've based this on the official phased contribution rates, which apply to gross earnings (up to a cap of €80,000, so €50,000 is fully covered). These rates start at 1.5% for both employee and employer, increasing every three years to reach 6% each by year 10. Note: This covers only the employer's costs (your contributions); employee deductions and government top-ups are separate and not a direct cost to your business.

We've broken it down year by year over the 10-year phase-in period, assuming the scheme begins in 2025. Calculations are straightforward: Annual employer cost = Gross salary × Employer contribution percentage.

  1. Year 1 (2025): 1.5% rate. Calculation: €50,000 × 0.015 = €750.
  2. Year 2 (2026): 1.5% rate. Calculation: €50,000 × 0.015 = €750.
  3. Year 3 (2027): 1.5% rate. Calculation: €50,000 × 0.015 = €750.
  4. Year 4 (2028): 3% rate. Calculation: €50,000 × 0.03 = €1,500.
  5. Year 5 (2029): 3% rate. Calculation: €50,000 × 0.03 = €1,500.
  6. Year 6 (2030): 3% rate. Calculation: €50,000 × 0.03 = €1,500.
  7. Year 7 (2031): 4.5% rate. Calculation: €50,000 × 0.045 = €2,250.
  8. Year 8 (2032): 4.5% rate. Calculation: €50,000 × 0.045 = €2,250.
  9. Year 9 (2033): 4.5% rate. Calculation: €50,000 × 0.045 = €2,250.
  10. Year 10 (2034): 6% rate. Calculation: €50,000 × 0.06 = €3,000.

Total over 10 years: €750 × 3 + €1,500 × 3 + €2,250 × 3 + €3,000 × 1 = €2,250 + €4,500 + €6,750 + €3,000 = €16,500. (To arrive at this: Multiply the annual cost by the number of years at each rate, then sum all phased totals.)

At EasyPayroll, we handle these calculations automatically in your payroll system, ensuring compliance without extra effort. Contact us for a quote to make Auto Enrolment simple!