Employer contributions will stand at 1.5% of gross pay.
- In year 4 that will increase to 3%
- In year 7 that will increase to 4.5%
- In year 10 that will increase to the maximum rate of 6%
Contributions will be fixed and employers and employees won’t be able to contribute less or more than the set rate.
State Contributions under Auto-Enrolment: (Information extracted from Gov.ie Jan 2024)
| Year 1 – 3 | 0.5% |
|---|---|
| Year 4 – 6 | 1% |
| Year 7 – 9 | 1.5% |
| Year 10+ | 6% |
However, benefits may not be extracted until employees reach full statutory retirement status (age 66+) It may be in both employer and employee’s interest to start a PRSA contribution which may lead to early retirement benefits.
Note: Once there is an employer PRSA with employer benefits being regularly extracted through the payroll system, both employer and employee are exempt from enforced auto-enrolment.
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