{"id":54792,"date":"2026-02-09T17:10:27","date_gmt":"2026-02-09T17:10:27","guid":{"rendered":"https:\/\/my.legal500.com\/developments\/?post_type=legal_developments&#038;p=54792"},"modified":"2026-02-09T17:10:27","modified_gmt":"2026-02-09T17:10:27","slug":"auto-enrolment-update","status":"publish","type":"legal_developments","link":"https:\/\/my.legal500.com\/developments\/thought-leadership\/auto-enrolment-update\/","title":{"rendered":"Auto-Enrolment Update"},"content":{"rendered":"<p><strong>\u201cMyFutureFund\u201d Ireland\u2019s new auto-enrolment pension system is now in effect as of 1<sup>st<\/sup> January automatically enrolling \u201c<em>eligible<\/em>\u201d employees.<\/strong><\/p>\n<p><!--more--><\/p>\n<p>While many employers were prepared for this development, what came as a surprise were the further regulations signed into law on 22<sup>nd<\/sup> December, 2025 (<em>S.I. No. 668\/2025 &#8211; Automatic Enrolment Retirement Savings System Regulations (Amendment) (Section 52) Regulations 2025, <\/em>hereafter the \u201cRegulations\u201d).<\/p>\n<p>The Regulations set out minimum standards that must be met in respect of contributions to occupational pension schemes and PRSAs in order for employments to be \u201c<em>exempt<\/em>\u201d from autoenrollment to MyFutureFund. These Regulations setting out minimum standards had not been expected for some time.<\/p>\n<p>The Regulations which are already in effect since January 1<sup>st<\/sup> stipulate the following minimum standards.<\/p>\n<p><strong>Minimum Standards For Defined Contribution Schemes and PRSAs:<\/strong><\/p>\n<p>Employer contributions must amount to not less than 1.5% of the employee\u2019s gross pay or \u20ac1,200 in any year, whichever is less.<\/p>\n<p>In addition the aggregate contributions of the employer and the employee cannot be less than 3.5% of the employee\u2019s gross pay or \u20ac2,800 in any year whichever is less.<\/p>\n<p>It is important to note the reference to \u201c<em>gross<\/em>\u201d as opposed to base pay. This is significant as traditionally many pension contributions have been calculated with reference to an employee\u2019s base salary. It is important to be aware that \u201c<em>gross<\/em>\u201d pay reflects more than just an employee\u2019s base salary. It can include things like commission, bonus etc.<\/p>\n<p><strong>Minimum Standards For Defined Benefits Schemes:<\/strong><\/p>\n<p>Where a scheme is a defined benefit scheme continuing service in that employment entitles the employee to accrue a long service benefit.<\/p>\n<p><strong>Takeaway for Employers:<\/strong><\/p>\n<p>Employers who are treating their employee\u2019s employments as exempt from autoenrollment to MyFutureFund on the basis of contributions being made to an occupational pension scheme or PRSA should (if they have not already done so) review the contribution levels to ensure they meet the new minimum standards.<\/p>\n<p>In many cases the contributions may satisfy the standards, however, where there is a shortfall, employers need to be careful about how that shortfall is addressed. Some employers are choosing to make up the short fall through an increased employer contribution in circumstances where seeking to compel an increased employee contribution from existing employees likely presents additional legal issues\/challenges.<\/p>\n<p>Employers may also like to review the \u201c<em>FAQ for Employers\/Agents<\/em>\u201d that is available on the MyFutureFund Website (link below).<\/p>\n<p><strong>Links:<\/strong><\/p>\n<p><a href=\"https:\/\/myfuturefund.ie\/employer-faq\"><strong>https:\/\/myfuturefund.ie\/employer-faq<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.irishstatutebook.ie\/eli\/2025\/si\/668\/made\/en\/print?q=enrolment&amp;years=2025\"><strong>https:\/\/www.irishstatutebook.ie\/eli\/2025\/si\/668\/made\/en\/print?q=enrolment&amp;years=2025<\/strong><\/a><\/p>\n<p><em>Author \u2013Laura Killelea<\/em><\/p>\n<p>23 January 2025<\/p>\n<p><strong>Anne O\u2019Connell <\/strong><\/p>\n<p><strong>Solicitors<\/strong><\/p>\n<p>19-22 Lower Baggot Street<\/p>\n<p>Dublin 2.<\/p>\n<p><a href=\"http:\/\/www.aocsolicitors.ie\">www.aocsolicitors.ie<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-54792","legal_developments","type-legal_developments","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments\/54792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments"}],"about":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/types\/legal_developments"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/media?parent=54792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}