Dáil Éireann Debate, Tuesday - 16 December 2025
637. Deputy John Paul O'Shea asked the Minister for Social Protection the monetary deduction an employee on the average industrial wage will see in their pay packet in January for their contribution to auto enrolment; if the value of the minimum wage increase for low paid workers will offset the contribution for auto enrolment; and if he will make a statement on the matter. [71744/25]
Amharc ar fhreagra638. Deputy John Paul O'Shea asked the Minister for Social Protection if there will be a user friendly online system where employees can view their auto enrolment pot growing; if this will take account of investment performance or just the employer, employee and State contribution; his views on whether this will be an important tool so that employees can see and clearly understand the benefits of their contributions; and if he will make a statement on the matter. [71745/25]
Amharc ar fhreagraI propose to take Questions Nos. 637 and 638 together.
The introduction of a pensions auto-enrolment system is a Programme for Government commitment, and one of my key priorities. The aim of introducing an Automatic Enrolment (AE) system is to address the pension coverage gap that exists in Ireland, and to help provide for better retirement incomes for workers. The new system will be called 'My Future Fund' and it will launch from the 1st January 2026.
According to the CSO's most recent earnings data, the average industrial wage on a monthly basis is €4,865. On the basis of an employee contribution rate of 1.5%, the amount to be deducted from an employee earning this wage will be €73 a month. This will be matched by the employer and topped up by the State at a rate of €1 for every €3 contributed by the participant. Therefore, the total amount that will be allocated to this employee's My Future Fund account will be €170.33 a month, which will then be invested in line with the provisions of the Automatic Enrolment Retirement Savings Act 2024.
With regard to the National Minimum Wage, from 1 January 2026 the rate will increase by 65 cents to €14.15. For an individual working a 40 hour week, their annual earnings will increase by €1,365 to just over €29,500. Should this employee be eligible for My Future Fund, then their annual contribution at 1.5% of earnings would amount to €442.50, which represents just under one-third of the increase in their income arising from the change in the rate of the National Minimum Wage. Again it is important to note that the employee's contribution will be matched by the employer and topped up by the State, giving an annual total of €1,032.50 credited to the employee's My Future Fund account.
Finally, from the 1st of January 2026 an employee portal will be available on myfuturefund.ie which will allow employees to view the employee, employer and State contributions made to their account. Participants will also be provided with an overview as to the investment performance of their funds and the fees and charges applied to their funds. Additionally, the portal will also provide participants with the functionality to change their investment risk level, and to exercise their choice to opt-out or suspend their contributions. The portal will also serve a function in terms of demonstrating how their participation in My Future Fund is beneficial to their retirement savings goals. It is intended that this functionality will also be provided in a mobile phone app in the early part of 2026.
I hope this clarifies matters for the Deputy.
