By PayMetric Labs Research Desk
My Future Fund, Ireland's new mandatory pension scheme, automatically enrols employees aged 23-60 earning over €20,000 who aren't already in a workplace pension. Here is the phased contribution schedule, the €80,000 salary cap, the opt-out window, and why it can pay less than a traditional PRSA for higher earners.
Employee or director? This guide is for employees.
My Future Fund is the mandatory scheme for employees without a workplace pension. If you're a company director or contractor extracting profit through a limited company, the more powerful route is usually a BIK-free employer PRSA contribution, see the PRSA employer contribution guide instead.
Here is the answer before the detail: My Future Fund, Ireland's new auto-enrolment pension, currently deducts 1.5% of your gross pay, matched by 1.5% from your employer and topped up by 0.5% from the State, 3.5% of gross pay saved in total. Those rates step up every three years until they reach 6% employee / 6% employer / 2% State (14% total) from year 10. Employer and State contributions stop above €80,000 of salary.
Hundreds of thousands of private-sector workers without an existing workplace pension are now saving for retirement through payroll for the first time in 2026, often without having actively opted in. If you've noticed a new deduction on your payslip, here is exactly what it means for your take-home pay, how the contribution rates are structured, and how the scheme compares to a traditional PRSA if you have a choice.
See exactly how much auto-enrolment takes from your own salary.
Open the calculatorYou're automatically enrolled if you're aged 23 to 60, earn €20,000 or more a year, and aren't already contributing to a qualifying workplace pension. The scheme uses a phased contribution structure that starts low and rises every three years:
| Phase | Employee | Employer | State top-up | Total saved |
|---|---|---|---|---|
| Years 1-3 (current) | 1.5% | 1.5% | 0.5% | 3.5% |
| Years 4-6 | 3.0% | 3.0% | 1.0% | 7.0% |
| Years 7-9 | 4.5% | 4.5% | 1.5% | 10.5% |
| Year 10+ | 6.0% | 6.0% | 2.0% | 14.0% |
Employer matching and the State top-up only apply up to €80,000 of salary. All figures are a percentage of gross pay.
The two schemes grant relief on your contribution in completely different ways, and that's what decides which one is better for you.
My Future Fund (auto-enrolment)
25%
of your pot is State-funded. Your contribution comes out of your net, post-tax pay. Instead of Income Tax relief, you get a flat State top-up of €1 for every €3 you contribute, worth roughly a third on top, regardless of your tax band.
Traditional PRSA / occupational pension
40%
of your pot is tax relief, for a higher-rate taxpayer. Your contribution comes out of your gross, pre-tax pay, so a 40% taxpayer effectively only gives up 60c of net pay for every €1 that reaches the pension.
The practical rule of thumb: if your income sits below the €44,000 standard-rate cut-off, the two schemes land in a similar place, and the guaranteed employer match makes auto-enrolment a straightforward win. If you're a higher-rate taxpayer, a traditional PRSA or occupational pension with 40% marginal relief, funding 40% of your total contribution versus auto-enrolment's 25%, generally delivers more pension for the same net cost, which is worth discussing with your employer if you have the option to opt for one instead.
6-month mandatory period
Every eligible employee stays in My Future Fund for the first 6 months of enrolment, with contributions deducted automatically through payroll.
Opt-out window: months 7-8
You can opt out during this 60-day window and receive a full refund of your own personal contributions from the first 6 months. The employer and State portions are not refunded to you.
Automatic re-enrolment after 2 years
If you opt out, you're automatically re-enrolled after 2 years if you still meet the age and income eligibility criteria, restarting the same cycle.
See exactly what auto-enrolment costs you
Use the PRSA calculator's Auto-Enrolment mode to see your own contribution, the employer match, the State top-up, and how it stacks up against a traditional PRSA at your income level.
Open the PRSA CalculatorMy Future Fund is Ireland's mandatory auto-enrolment pension system, launched in 2026 for workers who don't already have a workplace pension. It automatically signs up eligible employees, with contributions split between the employee, an employer match, and a State top-up, all collected through payroll.
You're automatically enrolled if you're aged between 23 and 60, earn €20,000 or more a year across your employments, and aren't already contributing to a qualifying workplace pension through payroll. If you're already in an occupational pension or a PRSA with employer contributions, you're not affected.
In the current phase (years 1-3), employees contribute 1.5% of gross salary, matched by 1.5% from the employer, with a 0.5% State top-up, 3.5% of gross pay saved in total. The rates step up every three years: 3%/3%/1% in years 4-6, 4.5%/4.5%/1.5% in years 7-9, and 6%/6%/2% from year 10 onwards.
Yes. Employer matching and the State top-up only apply to earnings up to €80,000 a year. You can still be enrolled if you earn more than that, but the matching contributions stop at the €80,000 mark.
You must stay in the scheme for the first 6 months. An opt-out window opens in months 7 and 8, during which you can leave and get a full refund of your own contributions (the employer and State portions are not refunded to you directly). If you opt out, you're automatically re-enrolled after 2 years if you still meet the eligibility criteria.
It depends on your tax band. Auto-enrolment contributions come out of your take-home pay after tax and don't get Income Tax relief; instead you get the State top-up, worth roughly a third on top of your own contribution (€1 for every €3 you put in). Put another way, of the total that lands in your pot (your €3 plus the State's €1), the State funds 25% of it. A PRSA or occupational pension contribution is deducted before tax, so a higher-rate (40%) taxpayer gets more relief on it, 40% of the total contribution, than the flat 25% State top-up provides. Below the standard-rate cut-off, the two are much closer in value.