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.
Ireland's retirement landscape changed materially in 2026 with the launch of My Future Fund, the state's automatic enrolment pension system. Hundreds of thousands of private-sector workers without an existing workplace pension are now saving for retirement through payroll for the first time, 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.
You'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)
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
Your contribution comes out of your gross, pre-tax pay. Income Tax relief applies at your marginal rate, so a higher-rate (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 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). A PRSA or occupational pension contribution is deducted before tax, so a higher-rate (40%) taxpayer gets more relief on it than the flat State top-up provides. Below the standard-rate cut-off, the two are much closer in value.
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