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Auto-enrolment pensions are coming in 2025

Is your business ready for auto-enrolment pensions? From January 2025, employers must meet certain obligations for their employees' retirement savings or face penalities. Find out what you need to do to get ready.

The auto-enrolment pensions scheme needs your action, now.

The Auto Enrolment Retirement Savings Bill 2024 has been introduced and will soon become law. That means if you run a business, or are rsponsible for employees, you must start preparing for auto-enrolment, which is due to start on 1 January, 2025. If you don't take time to prepare for auto-enrolment, your employees will be automatically enrolled in a government-run scheme, which means your business may have to handle multiple pension plans with a varying rules and requirements for retirement ages, top-ups and more.

The responsibility lies with employers to ensure that eligible employees are enrolled in the scheme. Failure to comply can result in penalties and potential legal action. Employers are legally obligated to enrol qualifying employees, deduct their contributions, match those contributions, and adhere to regulatory standards to avoid penalties.

As a new scheme in Ireland with heavy compliance requirements, it can be confusing for employers to navigate. At Hennelly Finance, we support organisations to understand what's required of them, what options they have available, and what is the right solution for their business.

How will the scheme work?

To begin, a contribution of 1.5% each will be made by both the employee and employer. This will be accompanied by a 0.5% State contribution (equating to €1 for every €3 contributed by the employee).

Every three years, contributions will increase by 1.5% from both the employee and employer. By year 10, the total annual contributions will reach 14% made up of 6% each fromthe employer and employee alongside a further 2% contribution from the State. Employer and State contributions are capped at earnings of €80,000 per year.

There are a number of options available to your business and its employees - auto-enrolment pensions, DC pensions, a PRSA - and come January, your employees by law must be enrolled in a scheme. There is quite a bit of work to be done to prepare for for the scheme's complaince requirements, so don't leave it until it's too late and get locked into a scheme that doesn't work for you or your employees. Talk to us about your options now.

Download our easy reference guide
on auto-enrolment to help navigate
requirements of the new scheme.

Getting ready for auto-enrolment

Getting ready for auto-enrolment begins with the following steps:

1. Review the total number of employees in your organisation and the number that may currently be on a pension plan.

2. Weigh the advantages and disadvantages of including these employees in your existing plan, compared to the new auto-enrolment scheme.

3. Think about those employees who will be joining and reiew what their contract says about pension plans.

4. Discuss the next steps with a pensions and employee benefits specialist.

Frequently asked questions about auto-enrolment

What is auto-enrolment?
Auto-enrolment is a government initiative to encourage employees to save for retirement by automatically enrolling them in a workplace pension scheme. The scheme applies to employees who meet the eligibility criteria and do not contribute to a Defined Contribution (DC) pension scheme.

When will auto-enrolment pensions begin?
Auto-enrolment is scheduled to begin in the first quarter of 2024.

What is required of employers?
Employers will have certain responsibilities under auto-enrolment pensions, including facilitating the enrolment process for eligible employees, deducting pension contributions from their salaries, and making employer contributions as required. Employers will also need to ensure compliance with regulatory requirements and provide necessary information to employees.

What can employers do to get ready for auto-enrolment pensions?
Employers should ready themselves for auto-enrolment pensions by ensuring their payroll department can calculate and pay the appropriate employee and employer contributions to the Central Processing Authority.

Are employer contributions tax deductible?
Yes, employer contributions will be deductible for corporation tax purposes.

What happens to employers that do not implement auto-enrolment? The State places the onus on the employer to ensure eligible employees are enrolled in the scheme. If you fail to do so, penalties and prosecution may apply.

How will auto-enrolment affect existing pension schemes offered by employers?
Existing pension schemes offered by employers can continue alongside auto-enrolment. Employees who are currently members of an employer scheme will not be enrolled in the new scheme.

We are pensions and employee benefits specialists that provide tailored solutions to meet your unique needs.

We understand the government's new auto-enrolment scheme can feel overwhelming, but our team is committed to helping you find the right solution for your business and its employees, and making the transition process as seamless as possible.

Group investments by experienced professionals.

We have group investment options whether you want to protect your capital investment or are more focused on investing for growth. Perhaps your business has a need to build up a future lump sum through regular savings for upcoming projects? Whatever your preference we have a group investment solution for you.

Some of our corporate clients

Where we are

Insurance Brokers & Financial Consultants,
Unit 3B, Tí Phuirséil,
Barna, Co. Galway.
H91 AF1W

Opening Hours

Monday - Thursday: 9am -5pm
Friday: 9am - 4pm
Appointments available outside normal working hours upon request.


Hennelly Financial Services Ltd. t/a Hennelly Finance & Health Insurance Shop is regulated by the Central Bank of Ireland. Directors R. Hennelly. Registered in Ireland, Company Reg No: 327276.
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