Peter Roche (Galway East, Fine Gael)
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92. To ask the Minister for Employment Affairs and Social Protection if his Department has reviewed the possibility of lowering employers' PRSI in light of the forthcoming auto-enrolment scheme (details supplied); and if he will make a statement on the matter. [50818/25]

Dara Calleary (Mayo, Fianna Fail)
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The Programme for Government contains a commitment to introduce the Automatic Enrolment (AE) Retirement Savings System. The aim of introducing AE is to address the pension coverage gap that exists in Ireland and to provide workers with greater comfort and security regarding their retirement income. The new system - to be known as My Future Fund - will commence from 1 January 2026. The implementation of Automatic Enrolment will pave the way for around 7500,000 workers to be brought into a retirement savings scheme for the first time and I look forward to its implementation.

There are no plans to review the rate paid by employers in respect of PRSI. With regard to Automatic Enrolment, it should be noted that every effort has been made to ease the burden on employers associated with the implementation of this important initiative. During the design phase, there was extensive engagement with employers through a public consultation exercise and with their representative organisations. As a result of that, the design of My Future Fund was changed to provide for a phasing-in of contribution rates over a decade (rather than 6 years as originally planned), starting at a very low 1.5% of gross pay for the first three years. For employers, this approach gives them more time to adjust their budgets and it gives them very clear certainty as to the rates that will be applicable so as to facilitate the gradual absorption of these labour costs, thereby easing the burden on employers in implementing this reform.

It is also important to note that earlier this year I announced that the collection of contributions for 'My Future Fund' had been rescheduled to the 1st January 2026 from the 30th September 2025. This decision was informed by a number of factors including giving additional lead-in time for employers, particularly small and micro businesses, to ensure they can be compliant with the legislation from the start.

Additionally, the introduction of My Future Fund will be a positive development for many employers because the availability of an occupational pension in a place of employment can be a significant draw for talented workers. Conversely, the lack of an occupational pension can push workers away. The introduction of My Future Fund, therefore, creates a more level playing field for employers trying to attract good workers in a tight jobs market. Moreover, employers benefit from participating in the scheme by enhancing their employees’ sense of wellbeing with regard to them having some security with respect to their post-employment retirement.

Finally, we have set up a new public body called the National Automatic Enrolment Retirement Savings Authority (NAERSA) which will take care of most of the administration of the scheme, making it very easy for employers to comply with their obligations, and ensuring that employers will not have to shoulder any of the administrative costs of the scheme.

I hope this clarifies matters for the Deputy.