Auto-enrolment is around the corner – what does this mean for your business?

As a business owner and employer, you need to be aware of how the proposed pension auto enrolment (AE) plans are going to impact your business. AE is getting lots of coverage in the press  and the latest consensus is that it will be introduced in early 2025. This is going to directly affect your  employees, and you and your business – so now is the time to start planning what approach you will  take. 

What is auto-enrolment? 

The objective of the proposed AE scheme is to ensure that every worker will have access to a  workplace pension to supplement the basic state pension. Some of the key features of auto enrolment are: 

• Employees, aged between 23 and 60, earning over €20,000 per annum and not already  contributing to supplementary pensions, will be automatically enrolled into the new AE  scheme.  
• Employers will need to facilitate this and will be required to contribute to it – this is the case  even if you already have an existing pension scheme in place for your employees.
• Initial contributions will be 1.5% of gross income from the employee, and 1.5% from their  employer.  
• This amount will be increased on a phased basis over 10 years with 1.5% added every three  years until a total of 6% is reached from both the employee and employer. 
• The pension will also be topped up by the State at 33%, with employer and State  contributions capped at €80,000 of earnings. 

Undoubtedly, AE is a positive change for future Irish generations as it will help more people save for  their retirement. As an employer though, you will need to prepare for its introduction. 

How can we help you prepare your business?  

We have been studying the proposed AE plans for the last number of years and have supported lots  of firms like yours with their AE plans. We can help you with: 

• Analysing the gap between how many employees you have versus how many are part of your  pension scheme, then determining the most appropriate solution. 
• Considering the pros and cons of having the employees not currently part of your scheme in  the new AE scheme. 
• Advising you on the design of your existing pension scheme and making recommendations  for the future. 

The impending introduction of AE may seem like an additional stress on your business but with our  help and support, it is a one that you don’t have to do alone. 

To understand how the pension auto enrolment (AE) plans are going to impact your business contact us at 021 4350806 or e-mail us on info@accuro.ie. Alternatively complete the Auto-enrolment Enquiry Form below and we will be in contact with you directly.