From January 2026, the ‘My Future Fund’ auto-enrolment system for workplace pensions will be introduced in Ireland. For People leaders, this marks a pivotal moment for employee communications. Many employees will very soon notice a change in their payslips and how you explain this change can make all the difference in building understanding, trust, and confidence with your workforce.
In this guide, we’ll explore practical steps to communicate upcoming auto-enrolment pay changes effectively. From explaining the basics and benefits to delivering reassuring messages and leveraging digital payroll tools, the aim is to help you inform and inspire your people.
Understanding the upcoming pay changes (and why they matter)
First, make sure you understand exactly what’s changing with auto-enrolment so you can explain it simply. From 1 January 2026, all employees deemed eligible by NAERSA, based on payroll revenue data, will be automatically enrolled in a new state-facilitated pension scheme. Each enrolled employee will contribute 1.5% of their gross pay to their pension, with the employer matching 1.5%, and the government adding an extra 0.5%. These contribution rates will rise every three years (to 3%, 4.5%, and eventually 6% each from employee and employer, with a 2% state top-up by 2034).
Employees can opt out of the scheme, but not immediately. Auto-enrolment works on an opt-out basis – everyone is enrolled by default, then after 6 months an employee can choose to withdraw and get their own contributions refunded. Even those who opt out will be automatically re-enrolled every two years, again with a chance to opt out after 6 months.
Crucially, these pension deductions will start right away in the New Year’s payroll. That’s why your internal communications are so important once it begins. Transparent communication also helps prevent misinformation. If employees don’t hear about why their pay changed, they could easily misunderstand it as a tax increase or a company policy, leading to confusion or even mistrust.
Building trust through transparency and empathy
Whenever pay is involved, trust and transparency are paramount. Start by acknowledging what employees care about and note that any reduction in take-home pay can be challenging in the short term. Let employees know you understand this and that the company is here to support them. If your organisation offers any financial wellbeing resources (budgeting tools, financial education, etc.), this is a great time to remind employees of that support.
And it’s crucial to keep communications inclusive and accessible. Your workforce may include people with varying levels of financial literacy, different languages, or varying degrees of trust in pensions. It’s useful to use plain language (avoid heavy jargon or acronyms) and consider supplementing written communications with visuals or face-to-face discussions. Some employees might appreciate a basic explainer of what a pension is and why starting early is beneficial. Others might worry about how this interacts with any existing pension scheme you offer. Tailor your messaging to address the needs of different groups:
- For employees already in a company pension (if any), clarify that they won’t be auto-enrolled because they’re already saving – nothing will change for their pay.
- For those under 23 or below the €20k threshold who aren’t auto-enrolled by default, let them know they can opt in if they wish, or that they will be enrolled once eligible. This prevents feelings of being “left out” or confusion among those who hear about the scheme but aren’t initially included.
- Ensure that communications reach all workers: office-based, remote, frontline, part-time, etc.
- Use multiple channels (email, intranet, company newsfeeds, team huddles, AI-enabled payslip messages, etc.) to cover everyone, including those who may not have daily computer access.
By being transparent, timely, and empathetic, you set the tone that this change is being handled in a people-first way.
Practical tips for communicating auto-enrolment to employees
How can you put these principles into action? Here are some practical tips and best practices for HR and internal comms teams to clearly explain auto-enrolment’s impact on pay.
- Ensure the HR team and managers thoroughly understand the auto-enrolment rules and timelines. Know the contribution rates, the opt-out process, and where to find more information. This will enable you to answer questions confidently.
- Avoid heavy technical jargon. For example, instead of saying “eligible employees 23–60 with earnings above €20,000 will have 1.5% of gross income auto-deducted post-PAYE,” say “if you’re 23 or over and earn above €20k, a small 1.5% of your salary will automatically go into a personal pension pot for you – with your company matching it and the government adding extra.”.
- Anticipate the main questions employees will have and answer them in your communications. The core ones may include: What is auto-enrolment? Why is this happening? When does it start? How much will be taken from my pay? How much are the company and State contributing? Can I opt out?
- Be honest about the trade-off. Alongside benefits, maintain credibility by being honest about the immediate impact. Acknowledge that take-home pay will be lower due to contributions. Quantify it in relatable terms to avoid shock.
- Inform employees of their right to opt out after six months – it’s a legal requirement to let them know their choices.
- Different people absorb information in different ways. Plan a multi-channel comms approach.
Supporting your comms with the right tech
While thoughtful communication is vital, you don’t have to do all of this alone – technology can be a powerful ally. Modern HR and payroll tools can greatly ease both the administrative burden of auto-enrolment and the communication process around it.
Consider your payroll system: Is it ready for auto-enrolment? Ideally, your software should be updated to handle the new My Future Fund rules automatically. That means it can identify which employees are eligible, calculate the correct contributions, and integrate with the central system (NAERSA) to submit data and payments. If you’re using an advanced platform such as ZellisONE, much of this can be automated – the system can flag eligible employees, run auto-enrolment simulation reports, and prepare your payroll for January without manual workarounds.
Digital tools can also improve the employee experience during this transition. A prime example is the concept of intelligent payslips, which include interactive, jargon-free explanations for any changes or new entries. When employees have clarity, they feel in control, which builds trust. Your HR team also benefits, because fewer people lodge queries like “What is this deduction? There must be a mistake.”
Lastly, don’t hesitate to lean on trusted partners. Providers like Zellis can offer guidance, templates, or even managed services to help with implementation. In fact, Zellis is launching a Pension Auto-Enrolment Managed Service to support organisations with the heavy lifting. Engaging with such expertise can free up your team to focus more on the people side (the communications and employee support) while technical experts handle the setup and compliance in the background. It’s about enabling you, as HR leaders, to shine in what you do best – caring for and leading your people – without getting overwhelmed by administrative complexity.
Equipping your HR team, and your people, for success
By proactively explaining the change, highlighting its benefits, and addressing concerns with empathy, HR can turn a potentially tricky transition into a moment of empowerment. Instead of feeling overwhelmed, employees will feel informed and supported. Instead of scepticism, they’ll respond with trust – trust in the scheme and trust in their employer.
As an HR or people leader, think of yourself as the bridge between the government’s grand policy and your individual employee’s day-to-day reality. You translate the big change into personal impact. You set the tone for how it’s received internally.
Optimism, practicality, and inclusivity will carry you through. Auto-enrolment is coming, and with your leadership, it can become a cornerstone of trust and a testament to the power of clear communication.
