Employers must now ensure that contributions to defined benefit contribution schemes or a PRSA, meet minimum standards under new regulations.
Minister Dara Calleary TD, signed new regulations (SI 668/2025) on 22 December 2025, which came into effect on 1 January 2026[1].
What is auto-enrolment?
Auto-enrolment refers to the process by which employers and employees now contribute to the State retirement savings scheme, My Future Fund. The scheme went live on 1 January 2026 and Government press releases state that over 750,000 employees across Ireland will benefit from the scheme[2].
Process for collecting contributions
NAERSA (National Auto Enrolment Retirement Savings Authority) are the body that has been set up to manage My Future Fund. In practice, NAERSA review payroll data for every employee to see if an employee will qualify for the scheme (i.e. they are an employee, earn €20,000 or more across each employment and are between the ages of 23 and 60).
Change in position since December 2025
Previously, it was advised in the Government FAQs that any level of contribution, if made via payroll, to a company pension scheme or PRSA, would automatically exempt an employee from contributions to My Future Fund.
This created a possibility that contributions to some schemes may fall below the statutory minimum contributions to My Future Fund, and a discrepancy between the two.
This became topical in the media throughout November and December 2025. During this period, the Government worked with the Pensions Authority to draft and introduce these new regulations:
For defined benefit contribution schemes and PRSAS:
- Employer contributions must now be 1.5% of the employee’s gross pay or €1,200 in any year (whichever is the lesser)
- Total combined contributions (of employer and employee) must not represent less than 1.5% of employee’s gross pay or €2,800 in any year (whichever is the lesser).
For defined benefit schemes:
- Continuing service in that employment entitles the employee to accrue a long service benefit.
What this means for employers
The changes introduced represent a shift in obligations on employers. It may require proactive steps to ensure that you are compliant with the rules. For example, there may be a requirement to evidence that the contributions are meeting statutory requirements, rather than relying on automatic exemptions.
Employers should now review and check the terms and rules of any existing schemes to ensure that they are compliant with the new regulations.
The Minister has indicated that the focus is on ensuring compliance, rather than to impose penalties. Contributions levels will be assessed over a three-month period, giving employers an opportunity to provide evidence or make changes as necessary[3].
Should you have any questions for your business, please do not hesitate to get in touch with Anne Lyne or Martin McKiernan.
21 January 2026
[1] S.I. No. 668/2025 – Automatic Enrolment Retirement Savings System Regulations (Amendment) (Section 52) Regulations 2025