Coming (likely) in September 2025, Ireland will introduce a mandatory AutoEnrolment pension scheme for certain employees. Here’s a quick guide to what it means for your company and how it compares with existing Occupational Pension Schemes.
🚦 Who will be autoenrolled?
🚦 Who will be autoenrolled?
Employees who:
Are aged 23 to 60
Earn more than €20,000 per year
Are not already in a pension scheme
👉 Good to know: If your employees are already in an Occupational pension scheme (regardless if they’re contributing, or it’s only you contributing to their pot), they won’t need to be autoenrolled.
🆚 AutoEnrolment Vs. Occupational pension schemes specifications
🆚 AutoEnrolment Vs. Occupational pension schemes specifications
AutoEnrolment | Occupational | |
Control | Fixed % for all | Flexible contribution rates |
Tax Advantage | Additional 0.5% in the first 3 years (ie, 33% of employee contribution) | Tax relief depending on salary:
|
Access Age | From 66 years old | From 50 years old |
AVCs Allowed? | ❌ No | ✅ Yes |
Contribution Cap | €80,000 salary | No cap |
Platform | NAERSA online portal | Kota / Pension provider portal |
💶 AutoEnrolment Vs Occupational contribution minimums
💶 AutoEnrolment Vs Occupational contribution minimums
AutoEnrolment | Occupational |
Year | Employer | Employee | State | Total | Employer | Employee | Total |
2025 | 1.5% | 1.5% | 0.5% | 3.5% | 1% | 0% | 1% |
2028 | 3% | 3% | 1% | 7% | 1% | 0% | 1% |
2031 | 4.5% | 4.5% | 1.5% | 10.5% | 1% | 0% | 1% |
2034 | 6% | 6% | 2% | 14% | 1% | 0% | 1% |
📌 In AutoEnrolment, contributions are only required up to €80,000 salary.
📌 Employer obligations on an AutoEnrolment scheme
📌 Employer obligations on an AutoEnrolment scheme
✅ Enrol eligible employees not already in a pension scheme (this will be an obligation on occupational schemes too if you’d like to be exempt from AutoEnrolment)
✅ Use NAERSA portal to manage payments
❌ Must not encourage employees to opt out
⛔ Cannot increase or decrease contributions
🚨 Non-compliance may result in fines or prosecution
↘ Employee opt-out rules on AutoEnrolment
↘ Employee opt-out rules on AutoEnrolment
Employees can opt out after 6 months, in the 7th and 8th month
They’ll be re-enrolled every 2 years, if still eligible
3️⃣ Your 3 options as an employer
3️⃣ Your 3 options as an employer
Enrol all eligible employees in Auto Enrolment via NAERSA
Offer both Auto Enrolment + Occupational Scheme in parallel
Enrol all staff in an Occupational Pension Scheme ✅ (exempts from auto enrolment)
🛟 How can Kota assist you in this transition?
Kota can help you set up an Occupational pension scheme in a way that will exempt you from getting into the Autoenrolment scheme. How?
Set up an occupational scheme
Add minimum Employer auto enrolment contributions (1.5%)
Automatically enrol all your existing and future employees
Give flexibility for your employees to contribute as they wish
Kota will charge contributions monthly and send them to Irish Life for investment in your Master Trust
Your employees will be able to access these funds from 50 y.o.
💬 Need help?
We’re here to help you navigate this transition smoothly.
Already offering an occupational pension through us? You’re likely already covered. Just need to ensure all your employees are enrolled.
If not, we can support you in setting one up before the deadline.
📩 Reach out to [email protected] for tailored guidance.