Government confirms three-month delay to auto-enrolment (AE) 

29 April 2025:  The Cabinet has approved a short delay to the implementation of the new AE scheme until 1 January 2026.  Minister for Social Protection Dara Calleary confirmed the commencement date will be moved “to align the new system with the standard tax year” and “to give additional time for payroll providers, especially smaller providers, to ready their systems for the launch and to give additional lead-in time for employers, to ensure they can be compliant with the legislation from the start.”

A delay beyond the planned 30 September start date had been widely anticipated in recent weeks following engagement by the Government with employer groups and payroll service providers who had indicated that they may not be ready in time. These groups had also been advocating for the start date to align with the commencement of the tax year.

The three-month extension is likely to be welcomed by employers, giving them valuable additional time to ensure that all key decisions and implementation actions are completed ahead of 1 January.  A common theme emerging from discussions with clients who have begun preparatory work in recent months has been that AE is more complicated than originally anticipated, especially for employers who already provide a pension plan and who are keen to use this to meet AE requirements. 

In particular, engagement with employees in relation to AE and its implications has quickly become the number one priority for employers.  The 30 September start date, following so closely after the summer months, was placing considerable pressure on employers to communicate effectively with employees.  The delay now gives some welcome breathing room.

What can employers do now? 

To maximise the time now available before 1 January, priorities for employers are as follows:

1. Ensure your strategic decisions have been made well in advance and ideally no later than July.  This includes undertaking any business impact / cost analysis, working through your key decision checklist on how you will implement the AE requirements, and deciding your employee engagement approach.
2.  Once decisions have been made, you should begin engaging with your key internal and external stakeholders on the implications, including unions (if relevant), service providers (including payroll), pension plan trustees and administrators, insurers and other advisers as appropriate.
3. Employee engagement processes – particularly where affected employees are being offered membership of an existing pension plan – should ideally be completed by the end of November at the latest allowing sufficient time to onboard employees into the plan before 1 January.  At this stage instructions need to have been provided to your pension plan providers to make any changes that are necessary to the plan to accommodate your AE decisions.