Auto-Enrolment What Employers Need to Know

Who Will Be Automatically Enrolled?

• Employees Aged 23–60
• Earning €20,000+ per year from your company
• Not already contributing to a workplace pension
• These employees will be automatically added to the new State-run pension scheme.

Who Will NOT Be Auto-Enrolled?

• Employees under 23 or over 60 — not automatically enrolled, but may opt in
• Employees earning under €20,000 — not automatically enrolled, but may opt in
• Anyone already in a qualifying pension scheme
• Non-PAYE contractors (not eligible for AE)

What About Company Directors (Class S)?

Based on a recent publication from the Department of Social Protection, our understanding is as follows regarding how Auto-Enrolment (AE) will apply to company directors when the new system begins in January 2026.

Will company directors be automatically enrolled? According to the Department’s guidance:
“If you pay PRSI as an employee and meet the eligibility criteria, then you will be enrolled.
But if you are registered as self-employed then you will not be eligible.”

gov.ie – Auto-Enrolment: Your Questions Answered
https://www.gov.ie/en/department-of-social-protection/publications/auto-enrolment-your-questions-answered/

Directors paying PRSI as employees (e.g., Class A)
They will be automatically enrolled, provided they are also:

• Are aged 23–60.
• Earn €20,000 or more through PAYE salary from the company.
• Are not already contributing to a qualifying pension scheme.

These directors are treated as employees for AE purposes.

Directors registered as self-employed (Class S PRSI)
They will NOT be auto-enrolled.

Even if they take a PAYE salary, if their PRSI classification is Class S (self-employed) for that directorship, the Department’s interpretation is that they are not eligible for automatic enrolment under AE.

This applies to a large number of proprietary directors who are legally required to pay Class S PRSI due to their ownership/control of the company. Such directors may still contribute to a personal pension, but they are not automatically included in the State AE scheme.

Summary for Directors

How Employees Can Opt In (If They are Not Auto Enrolled)

If an employee is not automatically enrolled (e.g., under 23, over 60, or earning under €20,000), they can still opt in.

How it works:

1. The employee logs into their Auto-Enrolment online account and selects “Opt In.”
2. The CPA (Central Processing Authority) notifies the employer/payroll provider.
3. Incorpro updates payroll, and contributions begin automatically.

No extra admin is required from the employer. Opt-in employees have the same rights and

contribution structure as those automatically enrolled.

What Employers Should Do During 2025

• Check if you already have a qualifying pension for staff.
• Identify who may meet AE criteria (including directors)
• Budget for employer contributions from January 2026
• Prepare for registration with the Central Processing Authority (CPA) when details are released.

How Payroll Will Work in January 2026

• Our systems will automatically identify eligible employees/directors.
• AE contributions will calculate automatically.
• Reporting and remittance to the CPA will be built into payroll.
• Opt-outs and refunds will be handled through the system.
• Incorpro will set everything up and run it for you.

Incorpro will share updates and support all clients to ensure a smooth transition. If you have questions or want to discuss how AE may affect your business or directors, feel free to get in touch.