My Future Fund auto-enrolment launched on 1 January 2026, marking a significant shift in how Irish employers approach pension provision. With an estimated 800,000 workers now being automatically enrolled, compliance is no longer optional, it's mandatory.

Every employee aged 23-60 earning over €20,000 annually must be enrolled unless they're already contributing to a workplace pension via payroll. The scheme operates on a gradual contribution structure, starting at 1.5% from employees, 1.5% from employers, and 0.5% from the State in Year 1, scaling up over the next decade.

On Christmas Eve, Minister Dara Calleary signed crucial legislation introducing minimum contribution standards for company pension schemes seeking exemption from auto-enrolment.

If you operate your own occupational pension scheme and want to claim exemption from MyFutureFund, your scheme must now meet these minimum standards:

For defined contribution schemes: Total contributions must be at least 3.5% of gross pay, with at least 1.5% from the employer (subject to a maximum of €1,200)

For defined benefit schemes: The scheme must confer a long-term benefit based on continuing employment

NAERSA will assess contribution levels over a three-month period. Employers whose schemes fall below the standard will be contacted and supported to become compliant, with enforcement action taken against continued non-compliance. Importantly, enrolling employees with merely notional contributions to avoid auto-enrolment will no longer be tolerated.

Non-compliance carries serious consequences. Penalties can reach €50,000 with potential imprisonment for severe violations. Criminal liability means this isn't just an HR issue, it's a business-critical priority that demands immediate attention.

January isn't just about compliance. It's the perfect moment to step back and build a strategic HR foundation that will support your business growth throughout 2026 and beyond.

Whilst others scramble to react to regulatory changes, forward-thinking businesses are using this moment to transform their entire approach to people management. The organisations that will thrive in 2026 are those who see HR not as a cost centre, but as the strategic advantage that sets them apart.

When did you last review your employment contracts? Are they compliant with current legislation? Do they reflect your actual working practices? Outdated contracts are a ticking time bomb, now's the time to address them.

Your handbook should be a living document that guides daily operations and protects your business. From remote working policies to AI usage guidelines, ensure it reflects the modern workplace reality whilst maintaining full compliance with Irish employment law.

Conduct site-specific risk assessments, update safety statements, and deliver training that actually sticks. Health and safety isn't about box-ticking, it's about creating a workplace where people can do their best work safely.

High turnover costs more than just recruitment fees. It disrupts productivity, damages morale, and impacts customer relationships. Strategic investment in engagement, wellbeing, and development pays dividends throughout the year.

From HRIS platforms to automated payroll reporting, the right technology doesn't replace human expertise, it amplifies it. Modern HR software should simplify your workload, not create more complexity.

Whilst you were enjoying the holidays, Ireland's employment law landscape continued evolving. Here's what you need to know as we begin 2026.

The Automatic Enrolment Retirement Savings System Act 2024 came into full effect on 1 January 2026. All eligible employees must now be enrolled, with contributions deducted from the first payroll run of the year. The National Automatic Enrolment Retirement Savings Authority (NAERSA) is actively monitoring compliance.

Ireland must transpose the EU Pay Transparency Directive into national law by June 2026. This landmark legislation will transform how employers approach pay equity and transparency. The Government's Spring 2025 Legislative Programme confirms the Pay Transparency Bill is in preparation.

The implications are substantial. Employers should begin now by reviewing job grading structures, conducting pay equity analyses, and updating recruitment processes. Countries that have implemented similar measures show that when done well, pay transparency enhances employee trust and perceptions of fairness but businesses need to be prepared.

The national minimum wage increased to €14.15 per hour from 1 January 2026. This represents a significant rise that impacts payroll costs, employment contracts, and wage structures across your business.

Ensure your pay scales reflect this increase and review your entire wage structure to maintain internal equity. Employees earning just above the previous minimum wage may now expect adjustments to preserve pay differentials. This is also an opportune moment to audit contracts, update payslips, and communicate the changes clearly to affected staff.

The Code of Practice on the Right to Disconnect continues to shape expectations around work-life boundaries. Ensure your policies clearly define working hours, out-of-hours contact protocols, and employee rights to disconnect from work communications.

Employees' rights to request flexible working arrangements remain a priority area for the Workplace Relations Commission. Develop robust procedures for receiving, considering, and responding to these requests in a fair and transparent manner.

Q: Can we delay implementation of auto-enrolment?

A: No. Auto-enrolment is mandatory legislation with no exemptions or delays available. If your payroll provider isn't ready, you need to find an alternative urgently. Non-compliance carries criminal penalties, this isn't something you can postpone.

Q: What if employees are already in our company pension scheme?

A: If they're contributing via payroll, they're exempt from auto-enrolment—but only if your scheme meets the new minimum standards introduced on 24 December 2025. Your defined contribution scheme must provide at least 3.5% total contributions with a minimum 1.5% from the employer. If your scheme falls below this threshold, employees may still be enrolled in My Future Fund. This makes it crucial to verify your scheme's compliance and maximise uptake through effective employee engagement.

Q: How should we prepare for the EU Pay Transparency Directive?

A: Start now. Conduct a pay equity audit to identify any gaps above 5% that can't be objectively justified. Review your job grading structure and ensure it's fit for purpose. Update recruitment processes to include pay ranges in advertisements. The deadline is June 2026, but the work required is substantial—early preparation will save significant stress later.

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January is traditionally when organisations focus on employee wellbeing. But sustainable wellness programmes require more than new year enthusiasm. They need expert design and committed implementation.

PurpleTree Flourish provides specialised training and one-to-one support in wellbeing and counselling. From corporate training workshops to individual counselling sessions, we help your people flourish so your business can thrive.

When your people flourish, your business thrives. It's that simple.

Our HR services are powered by HR:Duo, the leading HRIS platform designed specifically for the needs of Irish businesses. Everything from contracts to compliance lives in one simple, secure system.