Employer Responsibilities

Under Ireland’s auto-enrolment scheme, employers have specific responsibilities to ensure compliance and support their employees retirement savings. Here’s an overview:

Employer Responsibilities

1. Automatic Enrolment:

Employers must automatically enrol eligible employees (aged 23-60, earning €20,000 or more annually) into the scheme if they are not already part of a workplace pension plan.

2. Matching Contributions:

Employers are required to match employee contributions, starting at 1.5% of gross
salary and gradually increasing to 6% over ten years. Contributions are capped for
salaries above €80,000.

3. Facilitating Contributions:

Employers must ensure that employee, employer, and State contributions are collected and transferred to the National Automatic Enrolment Retirement Savings Authority (NAERSA) through an online portal.

4. Providing Information:

Employers must inform employees about the scheme, including their rights, benefits, and options for opting out or re-enrolling.

5. Record-Keeping:

Employers are expected to maintain accurate records of employee contributions and
compliance with the scheme.

6. Re-Enrolment:

Employers must re-enrol employees who have opted out every two to three years, as required by the scheme.

Enrol eligible employees. Employers in Ireland are required to enrol eligible employees in the auto-enrolment pension scheme to ensure that workers have access to a secure and sustainable retirement savings plan. This mandate addresses several key objectives:

Promoting Retirement Savings: Many employees lack workplace pensions, which could lead to financial insecurity in retirement. Auto-enrolment ensures that workers start saving early and consistently.
Shared Responsibility: The scheme distributes the responsibility for retirement savingsamong employees, employers, and the State, creating a balanced approach to financial planning.
Legal Compliance: Enrolling eligible employees ensures that employers meet their obligations under the auto-enrolment legislation, avoiding penalties and legal repercussions.
Supporting an Aging Population: With Ireland's aging population, the scheme helps reduce reliance on the State Pension by encouraging private savings, ensuring a more sustainable system for future generations.
Employee Benefits: By participating in the scheme, employees benefit from employer and State contributions, significantly boosting their retirement savings.

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