THE GOVERNMENT HAS confirmed that the long-awaited auto-enrolment pension scheme for workers will now not come into force until 1 January 2026.

The scheme, which will see almost 800,000 workers gain access to a pension for the first time, was due to kick in on 30 September 2025. 

However, a number of weeks ago Finance Minister Jack Chambers announced that the date would be pushed out “marginally”.

The hold up has been put down to the amount of administration that is required, and the government’s desire to launch it in alignment with other projects.

Minister for Social Protection Dara Calleary will update Cabinet today on the progress of the scheme. 

How will the scheme work?

The scheme will see employees contribute into a pension pot, with their contributions matched by their employer, as well as a further top-up from the State.

So, if an employee were to pay in €3 to their pension pot, their employer must match their contribution and put in €3, while the State provides a €1 top-up.

For every €3 an employee puts in, they will end up with €7 in their pension pot.

All employees who are not already in an occupational pension scheme, and are aged between 23 and 60 and earning over €20,000 across all of their employments, will be automatically enrolled under the new legislation.

It will be possible for workers to opt out of the scheme if they wish or to suspend their contributions, after six-months mandatory participation.

Cabinet

Separately, Justice Minister Jim O’Callaghan will seek Cabinet approval today for a new bill that will prepare Ireland for the upcoming EU Migration and Asylum Pact. 

The Irish government opted into the pact in March last year and by doing so committed to introducing legislation to replace the current International Protection Act by 2026. 

Essentially, the pact agrees a new housing strategy for asylum seekers that focuses on “moving away from reliance on private providers”. 

It also allows some member states the option of paying a monetary contribution to the bloc rather than accepting migrants. 

Under the pact, Ireland will have permission to return IP applicants who have moved here back to another EU member state to have their claim processed if they have travelled here from that country.