From 1 January 2026, Ireland’s new Auto-Enrolment Retirement Savings Scheme — called My Future Fund — will take effect. This means employees who aren’t already enrolled in a pension scheme will be automatically included.
While this may sound simple, the responsibility is on you, the employer — especially for small businesses in Galway. Whether you run a pharmacy, café, childcare service, construction business, or hotel, this scheme will apply to you. If you’re not prepared by 2026, you risk financial penalties, operational chaos, and staff turnover.
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1. Fines for Non-Compliance
Once My Future Fund rolls out, employers will be legally required to:
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Auto-enrol eligible staff
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Make contributions
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Manage employee pension deductions accurately
The Pensions Authority will be able to enforce compliance with:
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On-the-spot fines
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Daily penalties
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Legal action for ongoing breaches
For Galway SMEs, the cost of non-compliance could easily run into the thousands — especially when managing the admin in a rush in late 2025. Getting ahead of this now is key to avoiding unnecessary financial stress.
2. Payroll Confusion and Admin Chaos
For many small Galway businesses, such as catering, childcare, or small construction teams, pension compliance can feel overwhelming. Without dedicated payroll teams, your business could face:
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Confusion around deductions and contributions
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Delays in processing pension payments
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Errors in employee communications
Getting set up correctly in 2025 ensures smooth payroll processing and helps avoid delays in January 2026.
3. Staffing Trouble: Losing Good People
In a competitive local job market like Galway’s, pension benefits can be a deal-breaker for employees. If your staff doesn’t have a pension plan, they may start looking for employers who offer more financial security.
This can lead to:
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High staff turnover
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Difficulty attracting top talent
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Employee dissatisfaction as the deadline approaches
Being proactive with auto-enrolment ensures your business stays competitive in an already tight market for skilled employees.
4. Missed Government Support
Under My Future Fund, employers are required to contribute 1.5% of employee wages, with an additional 0.5% top-up from the government. These contributions will be matched by employee payments.
If you don’t comply, you could miss out on:
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Tax relief for your contributions
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Government top-ups, effectively leaving free money on the table
By getting ahead, you can make sure your staff get the full benefit of government contributions, which help both employees and employers alike.
✅ Galway Case Example: A Local Coffee Shop Owner
A Galway coffee shop with just 8 employees thought auto-enrolment wouldn’t apply to them. By 2025, they realised they had to implement the scheme but were running out of time. They reached out for help, and together we:
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Set up a compliant pension scheme for all eligible staff
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Worked with their bookkeeper to streamline payroll
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Prepared staff communications to avoid confusion
Now, they’re ready for January 2026 — and they’ve secured employee trust in the process.
💡 What Galway’s Small Businesses Should Do in 2025
Here are steps to get your business ready:
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Talk to your accountant or payroll provider today to understand contributions and setup
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Estimate your employer contributions (starting at 1.5%)
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Assess your employees to see who will need to be auto-enrolled
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Get expert pension advice to ensure compliance without the headache
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Communicate with your staff early — clarity now avoids confusion later
🟢 Why You Should Start Preparing Now
The Auto-Enrolment Retirement Savings Scheme may seem far off, but waiting until the last minute could lead to serious consequences. The time to prepare is now, and the earlier you get started, the smoother the transition will be.
My Future Fund starts on 1 January 2026 — so don’t wait until the last minute to get your business compliant. By taking action today, you ensure your business remains competitive, your staff stay happy, and you avoid the risk of penalties.
Employer’s Pension Helpline
Employer’s Pension Helpline, a sub-website of Qfinancial.ie, is here to help small businesses in Galway and across Ireland understand and navigate the complexities of pension auto-enrolment. Lorraine Connolly QFA, our dedicated lead on Employer Pension Helpline, provides expert advice on setting up compliant pension schemes and ensuring your business is ready for the 2026 deadline.
Trust in our expertise to keep you compliant and informed while you focus on growing your business.
For expert guidance, reach Lorraine Connolly QFA at Call: 091 421 900
