The Irish Government has announced a three-month delay to the rollout of its long-awaited auto-enrolment pension scheme, pushing the start date from September 30, 2025, to January 1, 2026.
Minister for Social Protection Dara Calleary confirmed the deferral, citing the need to align the new system, titled My Future Fund, with the standard tax year. He also said the decision was made to give payroll providers—especially smaller operators—more time to prepare their systems, and to ensure small and micro businesses are ready to comply with the new legislation.
Designed to tackle the growing pension gap, the scheme will automatically enrol over 800,000 workers not already participating in an occupational pension scheme. Eligible participants include employees aged between 23 and 60 earning more than €20,000 per year across all jobs.
“My Future Fund will help hundreds of thousands of hardworking people in Ireland put money aside for their life after work,” said Minister Calleary. “It is important that we start on the right foot and bring all stakeholders along with us. Deferring the collection of contributions for a short period is the right decision.”
Under the scheme, both employees and employers will contribute, starting at 1.5% of earnings. This will rise incrementally every three years until reaching 6% by the tenth year. For every €3 saved by the employee, the State will contribute an additional €1, on top of the employer’s €3.
Although eligible employees will be automatically enrolled, they may choose to opt out or pause contributions after six months.
However, the Irish Congress of Trade Unions (ICTU) sharply criticised the delay, calling it the latest in a series of disappointing policy rollbacks by the Government.
“This must be seen alongside the halving of sick pay from ten to five days, the three-year deferral of the living wage, and the indefinite postponement of the Low Pay Commission’s recommendation to scrap sub-minimum rates for young workers,” a spokesperson for ICTU said.
“Delaying bringing an end to our failed voluntary approach to occupational pensions will be a bitter pill to swallow for the 811,000 workers without a workplace pension and facing their income and living standards plummet in retirement,” the spokesperson added.
The Department of Social Protection said it remains committed to delivering the scheme in full, despite the revised timeline.
