Dara Calleary (Mayo, Fianna Fail)

Gabhaim buíochas as an gceist. The auto-enrolment savings system, known as My Future Fund, will commence on 1 January 2026. My Department has had extensive engagement with employers, including those in the community and voluntary sector, and with Government Departments, since the release of the automatic enrolment strawman public consultation in 2018. Its impending implementation has been well flagged to all those groups since the enactment of the auto-enrolment Act in 2024 and extensively throughout this year. Therefore, employers have been given a substantial lead-in period to budget appropriately for its introduction, including through budget negotiation with sponsors where appropriate.

It is worth mentioning that, in response to feedback from that consultation, the design of the auto-enrolment system provides for phasing in of contribution rates over a decade. Employees will be required to make initial contributions of 1.5% of gross earnings, rising by 1.5% every three years until they reach a maximum contribution rate of 6% in year ten. These contributions will be matched on a one-for-one basis and on the same timeline by employer contributions and topped up by the State at a rate of €1 for every €3 contributed by the employee. That phased approach has arisen as a consequence of the consultations the Department has undertaken in the design of the system. For community and voluntary groups and employers generally, this approach gives clear certainty on the rates that will be applicable so as to facilitate the gradual absorption of labour costs.

My Department has been very proactive throughout this year - and indeed previously - in advising other Departments, including the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, about this issue.

I will be taking the opportunity again to remind my Cabinet colleagues in coming days. Automatic enrolment is starting on 1 January and no worker should be disadvantaged as a consequence.

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