2024 Will See the Introduction of Irelandís Long-Awaited Pension Auto-Enrolment
Once introduced auto-enrolment in a pension scheme will become necessary for all employees not already in an occupational pension scheme, aged between 23 and 60 and earning over €20,000 across their employments. Outside of these thresholds and age parameters employees will be able to opt into the scheme should they choose:
- Employer and employee contributions will start at 1.5% in 2024 and will increase by 1.5% every three years until they reach 6% by 2034.
- Employers will be required to match contributions made by employees up to an earnings threshold of €80,000.
- In addition to employer contributions, the State will also top up contributions by €1 for every €3 saved by the employee, up to a maximum of €80,000 of earnings.
After six months, employees will be able to opt-out or suspend participation. After two years, those employees who opted-out will be automatically re-enrolled.
As an employer, now is the time to consider what is needed in terms of employee communication and notifications, with planning an budgeting being as important for employees as it is for the employer); payroll planning and systems; budgeting and updates to policies and contracts.