WHAT IS AUTO-ENROLMENT (AE)?
Auto-enrolment is a new retirement savings system for employees that will be introduced in January 2025. It is expected that up to 800,000 people will be automatically enrolled once the system goes live. The scheme will be supervised by the Pensions Authority and a new public body, the National Automatic Enrolment Retirement Savings Authority (NAERSA), will be set up to administer the Auto-enrolment scheme.
Who is in?
- Employees aged between 23 and 60 who are earning more than €20,000 per annum (unless they are making ongoing PRSA or occupational pension contributions (Employer or employee) via payroll)
- Employees paying a pension contribution not recorded via payroll (from own bank account for example) will be included in AE
- Employees not in a PRSA or occupation pension who are outside the age and earnings parameters can opt in.
Who is out?
- Employees who are Class S PRSI Contributors (Typically Company Owner/Directors)
- Employees who have pension contributions to a PRSA or occupational scheme recorded via their payroll software/payslip, whether contribution is from employee, employer or both.
- The self-employed/unemployed.
Is everything finalised for Auto-Enrolment?
No, there are still some unknowns and questions where auto-enrolment is concerned.
What do I need to do now?
Nothing. Growth Investments will continue to monitor the implementation of the Auto-Enrolment scheme and contact you with more information on Auto-Enrolment for your business and employees as things develop. In the meantime, if you have any other questions or concerns, please feel free to contact the Growth team.
