Michael Creed (Cork North West, Fine Gael)
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101. To ask the Minister for Employment Affairs and Social Protection if she will clarify the situation regarding part-time workers earning less than €20,000 and their entitlement or obligation to auto-enrol for pension purposes; the costs of this in such circumstances to the employee; the implications for their employer; and if she will make a statement on the matter. [45316/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The introduction of a pensions auto-enrolment system is a Programme for Government commitment, and a key priority for me as Minister for Social Protection. The aim of introducing auto-enrolment is to address the pension coverage gap that exists in Ireland, and to help provide for better retirement incomes for workers. The legislation to underpin this new system was signed into law in July. In September I signed a Statutory Instrument, which provides for the commencement of enrolment and contribution collection on the 30th of September 2025.

When the new system commences, current and new employees, aged between 23 and 60 years of age, and earning €20,000 or above per annum (across all employments), and who are not actively contributing to a supplementary pension scheme, will be automatically enrolled. Those who fall outside the age and earnings threshold - in other words, those aged between 18 and 23 or between 60 and 66, or who earn below €20,000, will be able to join the new retirement savings system voluntarily by opting in.

Contributions into the retirement savings system will be made by the employee, the employer and the State. Based on the employee’s gross earnings, employee contributions will start at 1.5% of gross earnings for Years 1 to 3, rising to 3% in Years 4 to 6, and to 4.5% in Years 7 to 9. From Year 10 onwards the maximum contribution rate of 6% shall be applied. Employers will be required to match these contribution rates. A direct State top-up will also be contributed to participants' funds at the rate of €1 for every €3 the employee contributes.

Part-time workers will not be automatically enrolled where they earn less than €20,000 across all employments. However, they may voluntarily opt in to the scheme. Where this occurs, the part time worker will be treated as if they were auto enrolled. The worker and the employer will make contributions to the worker's retirement fund at the prevailing rate while the State will top up the fund at the rate of €1 for every €3 the worker contributes.

I hope this clarifies matters for the Deputy.