Auto-Enrolment Explained:
What Just Happened to Your Payslip
From January 2026, around 800,000 Irish workers have been automatically enrolled in a new pension scheme called MyFutureFund. If your payslip now shows a new deduction, this page explains everything in plain English.
The Quick Version
You contribute 1.5% of your salary
That's €15 per week on a €52,000 salary. It scales up over time.
Your employer matches it — 1.5%
Free money. Your employer puts in the same amount as you.
The State adds €1 for every €3 you save
That's a 25% boost — equivalent to a flat 33% return before any investment growth.
Total going in: 3.5% of your salary
Your 1.5% + employer 1.5% + state 0.5% = 3.5%. Scaling to 14% by 2035.
Charges are just 0.10% per year
Dramatically cheaper than most private pensions (which charge 0.75-1.5%).
6-month lock-in, then you can opt out
You can't leave for the first 6 months. Opt-out window is months 7-8. Re-enrolled every 2 years.
Am I Auto-Enrolled?
You're auto-enrolled if ALL of these apply to you:
If you already have a workplace pension (occupational scheme), you're NOT auto-enrolled. Self-employed people are also excluded — they can set up a PRSA instead.
Contributions Scale Up Over Time
The scheme starts small and grows. By 2035, you and your employer will each be putting in 6%.
| Period | You | Employer | State | Total |
|---|---|---|---|---|
| 2026-2028 | 1.5% | 1.5% | 0.5% | 3.5% |
| 2029-2031 | 3% | 3% | 1% | 7% |
| 2032-2034 | 4.5% | 4.5% | 1.5% | 10.5% |
| 2035+ | 6% | 6% | 2% | 14% |
Example: On a €40,000 salary in 2026, you contribute €600/year (€11.54/week). Your employer adds €600. The state adds €200. Total going into your pension: €1,400/year. By 2035, that becomes €5,600/year.
State Top-Up vs Tax Relief
Auto-enrolment works differently from traditional pensions. Instead of tax relief (which benefits higher earners more), you get a flat state top-up.
Auto-Enrolment (MyFutureFund)
- State adds €1 for every €3 you save
- Effective 25% boost (same for everyone)
- Fairer for lower earners
- No tax relief on contributions
Traditional Pension (PRSA/Occupational)
- Tax relief at your marginal rate
- 20% earners save 20%
- 40% earners save 40% (double the benefit)
- Better for higher earners
Want to go further?
Auto-enrolment is a start, but 1.5% isn't enough for a comfortable retirement. Explore your full pension options.
Explore PensionPlans.ie →