🇮🇪 Ireland: Mandatory Pension Contributions

Starting January 2026, the Irish government is introducing a mandatory private pension scheme for eligible employees who are not already contributing to a pension through payroll. This is part of the national Auto-Enrolment Scheme, also known as My Future Fund.

If you are employed in Ireland and do not currently contribute to a private pension via payroll, this change will apply to you.

What is changing?

Under the new rules:

• Employees will contribute: 1.5% of gross salary

• Employers will contribute: 1.5% of gross salary

• Contributions are calculated on gross pay (before tax)

• Contributions are deducted automatically via payroll

This means your net (take-home) pay will be slightly reduced, as part of your gross salary will now be allocated to your pension.

Who does this apply to?

You are affected if:

• You are employed in Ireland, and

• You are not currently enrolled in a private pension scheme through payroll

If you already have a qualifying pension arrangement, this scheme may not apply to you.

How will this appear on my payslip?

• Your payslip will show a pension contribution deduction equal to 1.5% of your gross salary

• Your employer’s contribution will be paid separately and does not reduce your salary

• Contributions are processed automatically — no action is required from you

Why is this being introduced?

The Irish government introduced this scheme to:

• Increase retirement savings coverage

• Ensure employees build long-term financial security

• Align Ireland with pension systems already in place across other EU countries

Do I need to do anything?

No action is required at this time. Contributions will be applied automatically through payroll starting January 2026.

If you have questions about how this impacts your payslip or eligibility, please reach out to our Support Team.