Workers will be automatically signed up for a pension from September 2025.
The Social Protection Minister has signed the commencement order for the launch of the scheme called My Future Fund.
It means workers who earn over €20,000 a year will be automatically enrolled for a pension through their employer.
It will apply to workers aged between 23 and 60, who don't already have a pension.
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Under the scheme, employers will match the amounts saved by workers and the State will top-up it up by €1 for every €3 that's paid in by participants.
Contribution levels will be phased in over a period of ten years. Employee and employer contributions will start at 1.5% in 2025, and will increase by 1.5% every three years until 6% is reached in 2034.
Social Protection Minister, Heather Humphreys, has described it as the single most significant reform of the pensions landscape in Ireland since the introduction of the pension in 1908.
“Auto Enrolment has been talked about for 30 years – in 2025 it will become a reality.
“This is going to mean 800,000 workers will have an occupational pension on top of their State pension.
“Ultimately it will mean people have more money and more comfort in their retirement – that’s good for the economy, good for businesses and good for our society.
Employers will be given the opportunity to opt out of the scheme following a 6 month mandatory participation period, and will be able to opt out in months 7 and 8 following enrolment.
In a statement explaining the scheme, The Department of Social Protection says "contributions will be refunded to the employee, but the employer and State contributions will be retained in the employee’s savings pot".
"Employees who opt out or suspend contributions will be automatically re-enrolled after two years if they still meet the eligibility criteria".
Minister Humphreys says the Government has approved the establishment of the National Automatic Enrolment Retirement Savings Authority (NAERSA) from the 31st of March 2025, ahead of the auto enrolment system going live on the 30th of September.
