Dublin: The Irish workforce enters 2026 with enhanced protections as two major legislative changes go live today. The long-awaited pension auto-enrolment system (My Future Fund) has officially launched, alongside a €0.65 increase in the national minimum wage.
1. Pension Auto-Enrolment (My Future Fund):
- Eligibility: Over 760,000 workers aged 23–60, earning more than €20,000 annually and not currently in a workplace pension, are being automatically enrolled.
- Contribution Structure: For every €3 a worker saves, the employer contributes €3, and the State adds €1.
- Phased Increase: Starting today, contributions are set at 1.5% of gross pay. This will rise by 1.5% every three years, eventually reaching 6% by 2036.
- Employer Compliance: Approximately 85,000 employers have registered. Those failing to comply face legal debts, fines, and potential prosecution.
2. Minimum Wage Increase:
- The national minimum wage has risen to €14.15 per hour, providing an annual boost for over 160,000 low-paid workers.
- Critique from Unions: The ICTU has criticized the government for not reaching the promised “living wage” of €14.45, stating that the €0.30 shortfall leaves workers significantly out of pocket.
Industry experts warn that sectors like hospitality and retail will feel the most impact, as they employ a high volume of younger workers affected by both changes simultaneously.
