Irish employers widely unprepared for pension auto-enrolment

The overwhelming majority of Irish organisations (79%) are either completely unprepared or only partly prepared for the introduction of pension auto-enrolment, according to new research. Just one in five (21%) employers report full preparation for the My Future Fund Auto-Enrolment Retirement Savings Scheme, currently set to launch on 30^th September 2025.   

Find a detailed explainer of the new scheme here: Ireland pensions auto-enrolment: Guide for payroll and HR

The study also reveals that as many as 40% of respondents have very little to no understanding of the timeline and planning needed to support auto-enrolment, while only 17% say they fully comprehend the timeline and planning requirements.  

The research, commissioned by HR and payroll software provider, Zellis, polled 356 HR, payroll, finance, and IT professionals in Ireland, and reveals a surprising lack of preparedness, just eight months before the auto-enrolment legislation takes effect.  

Asked what their organisation has done to prepare, less than half (45%) said there has been any form of awareness campaign for HR and payroll and teams, and 58% indicated their company is yet to check whether its payroll system can make the necessary calculations, deductions, and contributions to the National Automatic Enrolment Retirement Savings Authority (NAERSA).

The survey also reveals that only a third (33%) of organisations have updated their employment contracts in line with the impending changes, and even fewer (28%) have put a communication plan in place to inform employees of the scheme, fund options, and tax implications.  

Commenting on the research, Seán Murray, Director of Product Services, Ireland at Zellis, said:

“Auto-enrolment represents the largest change to the Irish pensions system in more than sixty years and so this research paints a concerning picture. There is a significant lack of preparedness and awareness across the board, suggesting many organisations still have no knowledge of the scheme, don’t understand its proposed operation, and don’t understand their legal obligations as an employer – nor the ramifications of non-compliance.”  

Equally concerning is the fact that more than three-quarters (77%) of organisations have either not calculated, or only partly calculated, the cost of auto-enrolment.

This is despite the fact that 75% of respondents expect the majority of their workforce to take part in the pension scheme.    

Murray added: “Once live, payroll systems will calculate the cost to the employer of company contributions on an ongoing basis but without an initial baseline analysis, employers will not understand their existing exposure, reducing the accuracy of any projected costs. At scale, this poses considerable risk to the financial stability of Irish companies and adds to the case for urgent action.” 

“By leveraging the right systems, services, and tools to identify their existing exposure levels and associated costs, however, companies can take steps to project future contribution costs based on scheme anniversary rate increases and anticipated recruitment needs,” concluded Murray. 

When it comes to forecasting contribution costs, most employers will use their payroll system (42%), though 35% plan to use their finance system. Twenty-one percent (21%) said their organisation will use multiple systems, however, including traditional spreadsheets.  

Survey respondents also said their organisation expects to increase its technology investment to facilitate the introduction of auto-enrolment. Nearly half (48%) plan to invest in payroll system modernisation, and more than a quarter (27%) selected ‘payroll/HCM/reward integration’ as an area that will require further investment.  

Access the full pension auto-enrolment report here