Auto Enrolment to be introduced from year 2022
What does it mean for you as the employer?
Auto-enrolment is a new retirement scheme which will be introduced on a phased basis from 2022 and is aimed at low to middle-income earners who do not have private pensions.
Private sector workers on more than €20,000 a year will be automatically enrolled in the new scheme and will not be able to opt out of the system for at least nine months after being signed up.
The State will contribute €1 for every €3 put into the pension by the member / employee. The contribution level by the employee will be set at 1% of wages from 2022, rising to 6% in year six.
Employers must also contribute a minimum of 1% of employees’ annual wages to each employee’s fund, which is expected to rise to 6% in year six.
The self-employed will not be automatically signed into the scheme, but will have the option to sign in.
For further information on how this will impact your business, please contact us directly on 0539420247 or email email@example.com.