How to prepare for auto-enrolment

The new scheme is set to launch within a matter of months. This section outlines the key steps you should take to hit the ground running and avoid costly disruption or penalties.

Checklist of key actions

Establish company strategy: Determine the impact of auto-enrolment on your staff and develop a clear strategy.
Communicate early: Inform employees about the upcoming changes and how they will be affected.
Review employment contracts: Ensure contracts make provision for pension contributions and comply with the new legislation.
Run information sessions: Educate employees about the auto-enrolment process and direct them to online resources.
Review reward strategy: Include employer contributions to the auto-enrolment pension as part of your reward strategy.
Contact payroll provider: Ensure your payroll solution can handle the necessary calculations, deductions, and remittances.

How can Zellis help with auto-enrolment?

Zellis has already begun preparing to support in-scope employers in complying with the new legislation and regulations. The solution will consist of a means of identifying employees who are eligible for enrolment, via integration with the NAERSA.

It will apply the appropriate calculations to those employees for contributions using the legislative business rules, calculate the correct contributions during payroll processing, and then remit the calculated figures back.

“At Zellis, we envisage being well-positioned to leverage our powerful web service solutions, which currently facilitate all data exchanges between our clients and Revenue, to provide a similar robust, secure, and transparent solution for auto-enrolment.”

Seán Murray, Director of Product Services Ireland, Zellis

AI-enabled HR, workforce management, and payroll. Experts in Ireland for over 30 years.

Establish the company strategy

The first step in preparing for auto-enrolment is to establish a clear company strategy. Determine which of these scenarios applies to your organisation:

All colleagues will be impacted
No colleagues will be impacted due to an existing mandatory company pension scheme
Some staff will be impacted because membership of the company pension scheme is not mandatory

Determining this first will guide your subsequent actions and communications.

Communicate with employees early

Communicating early and effectively with your people about the introduction of auto-enrolment is crucial. Inform employees about the upcoming changes, how they will be affected, and what they need to do. Clear and timely communication will help manage expectations and reduce confusion.

Review employment contracts

Consider whether any changes to employment contracts are required. Ensure that contracts make provision for pension contributions and comply with the new legislation. Seek legal advice and HR collaboration to ensure that any changes are properly implemented and communicated to employees.

Run information sessions

Consider running information sessions with your teams to explain the auto-enrolment process and its implications. Direct employees to online resources such as gov.ie and the Department of Social Protection's YouTube channel for additional information. These sessions can help employees understand the benefits of the scheme and how it will affect them.

Review reward strategy

Review your current reward strategy and consider including employer contributions to the auto-enrolment pension as a component.

This can help align your reward strategy with the new requirements and ensure that employees see the value of the pension contributions.

Contact your payroll provider

Contact your existing payroll provider to establish what its plans are regarding facilitating compliance with the auto-enrolment scheme.

Ensure that your payroll solution can calculate, deduct, and remit contributions to the National Automatic Enrolment Retirement Savings Authority (NAERSA) from employees' net income after income tax, PRSI, and the Universal Social Charge (USC). It should also be able to record employee contribution levels accurately.

Seek advice from your pension provider

Seek advice from your current pension provider regarding membership options and how they can support you in managing the auto-enrolment process. Your pension provider can offer valuable insights and assistance in ensuring that your organisation is fully prepared for the changes.