Firms urged to get payroll data ready for new pensions scheme

From December 1, employers can register on the My Future Fund portal, with 800,000 workers set for pensions auto-enrolment in January

Fri, 14 Nov, 2025 - 07:50

Joe Dermody

Employers need to ensure that payroll systems, HR policies and employee communications are carefully aligned ahead of the start of the My Future Fund pension scheme in January.

The new auto-enrolment pension scheme will see employees aged 23 to 60 who are earning over €20,000 per year, automatically enrolled if they’re not already in a qualifying pension scheme.

Employers are being reminded to have their payroll systems ready before the Government pulls payroll data in the coming weeks to identify those not already in a pension scheme.

Minister for Social Protection, Dara Calleary, said: “From January, 1.5% of an employee’s gross pay will be deducted automatically, matched by the employer and topped up by the State. For every €3 saved by a worker, the employer will add €3 and the State €1.

“Your €3 becomes €7, so it’s a deduction that actually makes you money and means a far better retirement.”

Minister Calleary told a discussion, hosted in Dublin this week by business law firm Mason Hayes & Curran, that My Future Fund, the State’s new retirement savings system, will automatically enrol over 800,000 workers from January.

He told the audience: “We are the last OECD country to do this, and we have to be ready. At present there are four workers for every person over 66. By 2050, there will be only two. Eight hundred thousand people have no pension other than the State pension, which is about €16,000 a year compared with an average industrial wage of €45,000. My Future Fund is about closing that gap.”

Employers will be able to register on the My Future Fund portal from December 1, 2025, with payroll integrations designed to minimise administration.

Stephen Gillick, partner and head of pensions at Mason Hayes & Curran, said: “The scheme represents the most significant change to Ireland’s pension landscape in decades. Employers now have a defined timeframe and a clear set of obligations.

“Our clients’ key questions are about implementation and communication, and the Minister’s insights today provided practical direction on registration, payroll setup and employee engagement ahead of January.”

Mr Gillick advised employers to register early once the My Future Fund portal opens on December 1. He also advised employers to check their payroll readiness and to communicate with staff to explain the approach being taken to help them to best save for retirement.

Meanwhile, the same message to employers has also been issued by CIPD, the professional body for HR and people development in Ireland.

The CIPD and financial advisor Zurich in Ireland hosted a round-table discussion ahead of the start of the My Future Fund pension scheme in January. The event hosts told those present that pension auto-enrolment is not just an administrative exercise, it’s a people challenge.

Alison Hodgson, the CIPD’s market director for Ireland, said: “The big challenge lies in communication and engagement. For many lower-paid workers, the decision to remain in a pension scheme is not just about understanding the system, it’s about affordability. For someone juggling bills, rent, and groceries, even a modest pension deduction can make the difference between getting by and going without.

“While the long-term benefits are clear, the short-term reality can be harsh. That’s where financial education and strong HR leadership play a critical role. It’s time for organisations to move beyond viewing pensions as a tick-box benefit, lumped in with gym memberships or one-for-all vouchers. Auto-enrolment represents a shift toward financial wellbeing as a core part of the employee value proposition.”

The CIPD notes that supporting staff through this change with clear communication, empathetic dialogue, and genuine education is as vital as the compliance process itself.

Rose Leonard, Zurich’s head of corporate distribution and customer relationship management, added: “Offering strong pension benefits demonstrates that an employer genuinely cares about the wellbeing of their employees. Clearly communicating about pension benefits, whether that’s about an auto-enrolment scheme or an existing employer scheme, is important and shows a long-term commitment to employees’ financial wellbeing.”

The first deductions are expected from January 2026, starting with the employee and employer both paying 1.5% of the annual salary. This will increase to 6% by year ten. The state will pay a 0.5% contribution which will rise to 2% after 10 years.

Employees can opt-out after six months, but they will be automatically re-enrolled again after two years if still eligible for the scheme.