Employer's Obligations

Additional Company Contributions

Additional company contributions such as Director’s Pension, Group PRSA, and Company Pension can be found below:

Employer's Obligations

Whereas there is no legal obligation for an employer to set up or contribute to a company pension scheme, all employers MUST provide all their employees with access to at least one Standard PRSA, as of from 15th September 2003.

(Source: www.pensionsauthority.ie)

- Do You Know Your Employer's Obligations?

- Are You an Employer?

- Do You Need Assistance in Keeping Compliant?

employer obligations General Image employer

Employer's Obligations Include:

  • To notify employees not included in a company arrangement that they have the right to contribute to a Standard PRSA.
  • To allow the PRSA provider or Broker Intermediary reasonable access to employees at their workplace.
  • Allow reasonable paid leave of absence so employees can set up a standard PRSA.
  • Make deductions from payroll at the request of employees and remit these to the designated PRSA provider.
  • Advise employees in writing, e.g. payslip once per month of the total contribution, including any employer contribution, if any.

If the employer does not comply with the statutory requirements to provide access to a standard PRSA, they may be found guilty of a criminal offence in accordance with the act, for which fines and penalties ranging from €1,500 to €12,700 and/or imprisonment for terms of one or two years may be imposed.

Auto Enrolment:

The expectation is that Auto Enrolment will begin in early 2024 meaning that approximately 750,000 employees who are aged between 23 and 60, earning over €20,000 across employments, and who are not already enrolled in an occupational pension scheme will be auto enrolled.

With Auto Enrolment, contributions will be paid by employees, and matched by their employers, as a percentage of the employee’s gross income. The State will top-up the rest. This will be done through a Central Processing Unit.

The rates of contribution will be phased-in gradually over a decade as follows:

Employers Obligation rate of contribution figures

With Auto Enrolment, Employer contributions and the State top-up will be capped at €80,000 of an employee’s gross salary.

Auto Enrolment will be welcome for lower rate workers so they will have a better standard of living in retirement years. However, employers are advised that setting up a traditional scheme for employers on the higher tax rate will experience better tax relief if a separate scheme can be started to keep this cohort happier.

It’s also noteworthy that contributions will be fixed with the Auto Enrolment Scheme, whereby most employees will wish to contribute an additional voluntary contribution to their retirement plan along their investment journey which can be easily done anytime with a traditional company pension plan.

How to Get Started

Are you unsure if you’re fully compliant in this area? Follow the steps below to get started with Mark Cahill Financial Services.

Step 1: Contact Us

Contact us and Speak to Mark Cahill.

Step 2: Information

Provide us with some information on your current situation and what you're looking for.

Step 3: Advice & Next Steps

We will provide you with advice and next steps to get started.

Mark Cahill of Mark Cahill Financial Services Ireland Profile Photo
Book a Call with Mark

Book a Free 1:1 Discovery Call with Mark Cahill Now. No fees, no obligations.

Follow Us on Social Media
Scroll to Top