Pension auto-enrolment is a people challenge, not just a payroll task

The professional body for HR and people development in Ireland says pension auto-enrolment is not just an administrative exercise, it’s a people challenge. 

The CIPD and Zurich in Ireland have hosted a round-table discussion ahead of the start of the My Future Fund pension scheme in January. It will see employees aged 23 to 60 who are earning over €20,000 per year, automatically enrolled if they’re not already in a qualifying pension scheme. 

The CIPD is urging employers to ensure payroll systems, HR policies and employee communications are carefully aligned before the Government pulls payroll data in the coming weeks to identify those not already in a pension scheme. 

Alison Hodgson, the CIPD’s Market Director Ireland, said:

“The big challenge lies in communication and engagement. For many lower-paid workers, the decision to remain in a pension scheme is not just about understanding the system, it’s about affordability. For someone juggling bills, rent, and groceries, even a modest pension deduction can make the difference between getting by and going without. While the long-term benefits are clear, the short-term reality can be harsh. That’s where financial education and strong HR leadership play a critical role. It’s time for organisations to move beyond viewing pensions as a tick-box benefit, lumped in with gym memberships or one-for-all vouchers. Auto-enrolment represents a shift toward financial wellbeing as a core part of the employee value proposition. Supporting staff through this change with clear communication, empathetic dialogue, and genuine education is as vital as the compliance process itself.”

Rose Leonard, Head of Corporate Distribution & Customer Relationship Management, Zurich added:

“Offering strong pension benefits demonstrates that an employer genuinely cares about the wellbeing of their employees. Clearly communicating about pension benefits, whether that’s about an auto-enrolment scheme or an existing employer scheme, is important and shows a long-term commitment to employee financial wellbeing.”

The first deductions are expected from January 2026, starting with the employee and employer both paying 1.5% of the annual salary. This will increase to 6% by year ten. The state will pay a 0.5% contribution which will rise to 2% after 10 years. Employees can opt-out after six months, but they will be automatically re-enrolled again after two years if still eligible for the scheme.