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As you know, understanding what employees value can tremendously impact your retention and recruitment strategies.
Starting in January 2025, the new auto-enrollment pension scheme will kick in
This is less than 5 months away and it’s going to affect many businesses.
From our latest talent study, we can see that this industry update aligns closely with what Ireland’s employees are already telling us they value.
*2024 Salary & Employment Survey
Key Details Explained
The new scheme mandates that every employer without a pension plan starts offering one to eligible employees.
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Eligibility Criteria: Employees aged between 23 and 60, earning €20,000 or more per year and not currently enrolled in a pension plan, will be automatically enrolled.
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Employer Compliance: Employers are mandated to participate in the auto-enrollment scheme. Failure to comply can result in penalties, including fines and prosecution.
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Contribution Rates: Initially, both employees and employers contribute 1.5% of the employee's annual salary, increasing gradually to 6% over a 10-year period.
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Opt-Out Option: Employees can opt out of the pension scheme after a minimum of 6 months; contributions made during this period are refundable upon opting out.
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Portability: If an employee changes jobs, their pension remains with them, managed by the National Automatic Enrolment Retirement Savings Authority, ensuring continuity and ease of managemen
What should you do about it?
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Check Your Current Setup: Does your benefits package stack up? If not, it’s time to start planning.
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Team Alignment: Make sure everyone involved in benefits management is on the same page. There’s work to be done, and it’s better to start early.
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Seek Expert Advice: Unsure about the next steps? An expert can help tailor a plan that not only fits your budget but also complies with new regulations.
Our team are happy to help guide you through these changes.
We can ensure you’re perfectly positioned for when these new regulations take effect. If you have any questions or if you’d just like to discuss your options, contact us today.