MyFutureFund is live: what Irish employers need to know (and what payroll has to do with it)

If you employ people in Ireland, you’ve probably heard the name MyFutureFund more times than you can count.

It’s the State-backed auto-enrolment retirement savings scheme. And it’s now in motion, with contributions collected from 1 January 2026.

For many employers, the scheme itself isn’t the hard part. The practical part is what matters: what changes in payroll, what it costs, what staff will see on their payslip, and what you need to do to stay on top of it all.

Let’s walk through it in plain terms.

First: what is MyFutureFund?

MyFutureFund is a national retirement savings scheme for employees who don’t already have pension contributions going through payroll.

The scheme is administered by NAERSA (the National Automatic Enrolment Retirement Savings Authority). NAERSA uses Revenue payroll data to identify who qualifies, enrol them, collect contributions, and manage investment options.

A key point: this sits alongside the State Pension, rather than replacing it.

Who gets auto-enrolled?

Employees are auto-enrolled if they:

• are aged 23 to 60
• earn €20,000 or more per year across all employments
• and do not have existing supplementary pension coverage recorded through payroll (for that employment)

Some people who don’t meet the thresholds can still join by opting in (for example, people earning under €20,000, or those aged 18–22 or 60–66).

And if someone has more than one job, it’s their combined earnings across employments that decide whether they cross the €20,000 line.

What are the contribution rates?

MyFutureFund contribution rates are being phased in over 10 years.

Here’s the schedule:

• 2026–2028: Employee 1.5% | Employer 1.5% | State 0.5%
• 2029–2031: Employee 3% | Employer 3% | State 1%
• 2032–2034: Employee 4.5% | Employer 4.5% | State 1.5%
• 2035 onwards: Employee 6% | Employer 6% | State 2%

The State top-up is commonly explained like this: for every €3 the employee contributes, the employer adds €3 and the State adds €1.

A few payroll-related details that matter:

• Contributions are calculated on gross earnings, but deducted from net pay after deductions.
• Contributions only apply up to an €80,000 gross earnings cap.
• Rates are set. It’s not a “pick your own %” arrangement for either employer or employee.

A quick cost example (helpful for budgeting)

Official examples show that for someone earning €20,000 per year, in the first phase (1.5% rates):

• Employee: €300/year
• Employer: €300/year
• State top-up: €100/year
• Total into the pot: €700/year

That’s a simple way to sense-check employer cost per eligible employee at today’s rate.

What employers actually have to do

1. Register on the MyFutureFund employer portal

The portal is the hub for employer payments and visibility.

Official guidance says employers (or their payroll/tax agent) access it using Revenue Online Services (ROS) credentials rather than setting up a brand-new login.

2. Set a payment method (direct debit is the “easy button”)

You can pay by direct debit or card, and the guidance leans heavily toward variable direct debit as the most straightforward way to keep payments on time.

3. Run payroll and pay contributions in line with pay day

Once NAERSA identifies an employee as eligible, NAERSA issues an AEPN (Automatic Enrolment Payroll Notification) through payroll software. That triggers the payroll instructions required to start deductions and calculate the employer match.

Employer guidance is clear on timing: contributions must be paid at the same time as the employee is paid, and contribution information must be provided to NAERSA.

4. Tell employees they’ve been enrolled

Employers are required to inform employees when they are first enrolled.

5. Don’t pressure staff to opt out

Auto-enrolment is treated as an employment right. Guidance highlights enforcement provisions, penalties, and the role of the Workplace Relations Commission where employees are hindered or penalised for taking part.

Opting out and suspending contributions (what your staff will ask)

This is where payroll and HR teams get the most questions.

Key points from official employee guidance:

• Employees generally must stay in for the first six months.
• They can opt out in months seven and eight after enrolment. In that scenario, their contributions are refunded, and any earlier employer matching and State top-ups remain in their savings pot as their property.
• If contribution rates increase, there is also an opt-out window six months after the change, with a refund of the difference between the new and previous rate (during the phased-in period).
• Employees who opt out and still qualify will be automatically re-enrolled after two years.
• Employees can suspend contributions outside the initial mandatory period, typically for one to two years, with automatic re-enrolment after two years if still eligible.

One small but practical note you can share with staff: there may be a short delay between seeing deductions on the payslip and seeing them appear in the participant portal (official examples mention up to 10 business days before following up).

Already have a company pension or PRSA arrangement?

You can still have (and offer) your own pension arrangement. Auto-enrolment isn’t intended to replace the wider pension market, and it does not remove existing employer obligations around facilitating pensions/PRSAs.

For auto-enrolment specifically:

• If pension contributions from employee and employer are paid through payroll for that employment, that employment is generally treated as exempt.
• Minimum contribution standards apply for exemption. For defined contribution schemes, official guidance references a minimum total contribution rate of 3.5% of gross pay, including at least 1.5% from the employer (subject to thresholds aligned with the €80,000 cap).
• Watch out for waiting periods in your scheme. Guidance notes that someone could be auto-enrolled before they can join your occupational scheme, and overlapping contributions may need a refund for the overlapping period.

Where Jefferson Payroll fits in

MyFutureFund is “simple” on paper. In real life, it lands in the middle of pay runs, new starters, leavers, payroll cut-offs, and a steady stream of employee questions.

This is exactly the sort of change that benefits from having payroll run by a specialist team.

Jefferson Payroll supports Irish employers with fully managed payroll outsourcing, backed by decades of experience in Ireland.

Here’s what that means in a MyFutureFund context:

• Payroll processing that absorbs scheme changes cleanly (AE deductions, employer matching, payslip presentation, and reporting). The official model relies on payroll instructions and correct calculations, so getting the payroll layer right is the whole battle.
• Implementation support when change hits. Jefferson’s implementation approach includes payroll analysis, compliance checking, parallel testing and structured go-live steps, useful when you’re introducing new statutory deductions or switching providers.
• Integration support to reduce manual admin. Full integration capability (including links to internal systems, time and attendance data converters, extract files for third parties, and custom reporting), with a focus on reducing manual input.
• Clearer employee experience through iPayslips. When employees ask “what is this new line on my payslip?”, having digital payslips with quick access helps. Jefferson’s iPayslips offers 24/7 access and two years of payslip history.

MyFutureFund is a pensions initiative, but it lives inside payroll. If you want fewer headaches, outsourcing payroll means you’ve got a dedicated team keeping deductions and reporting accurate, keeping pay day on track, and supporting your employees with clear payslips. So don’t wait any longer, get in touch with us today!