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ROI: Pension auto-enrolment to commence 30 September 2025

Farrell & Farrell

Following the Budget last week, it has been announced that the long awaited pension auto enrolment scheme will commence on 30 September 2025.

 

Auto-enrolment is a new Irish retirement savings system for Irish employees that will allow employees to contribute into a pension pot with their contributions matched by their employer, as well as further top up by the State.  The scheme is being targeted to allow individuals aged between 23-60 to start saving for their pension earlier to ensure people are not left on just the State pension when they retire.

 

The Finance Bill 2024 will align the tax treatment of the automatic enrolment scheme with that of Personal Retirement Savings Accounts (PRSAs), other than for employee contributions.  As the State will be making a direct contribution within the Automatic Enrolment scheme, no further tax relief is available for employee contributions to an Automatic Enrolment scheme.

 

For Irish resident employees automatic enrolment funds will be available to be taken as a tax free lump of 25% of the fund, up to a limit of €200,000. After this, it will be taxed on drawdown at 20% for the next €300,000 and 40% for any amounts above €500,000.



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Farrell & Farrell CA Limited (trading as Farrell & Farrell) is registered in NI with registration number NI 639336. Registered with The Chartered Institute of Taxation as a firm of Chartered Tax Advisers. Registered to carry on audit work and regulated for a range of investment business activities by Chartered Accountants Ireland (CAI). Details about our audit registration can be viewed at www.auditregister.org.uk under reference number 3044856.

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