Auto-Enrolment 2026 – What It Really Means for Your Pay
As 2026 approaches, one of the most significant changes to employment in Ireland is about to take effect. The Automatic Enrolment Pension Scheme will be introduced. While it’s a positive step toward helping people save for retirement, there’s an important detail that many employees may not yet realise: auto-enrolment contributions will be deducted not only from your base salary, but also from bonus payments, commissions, and mileage allowances that count as taxable income.
What is Auto-Enrolment?
From January 2026, all employees aged 23 to 60 earning €20,000 or more per year who are not already in a pension scheme will be automatically enrolled into a new government-backed pension plan. Both the employee and employer will contribute a percentage of gross pay, with the government also adding a top-up to boost savings.
“What do You Mean I have to Pay a Pension Contribution out of my Mileage?”
The Hidden Surprise for Commission and Bonus Earners
For anyone working in recruitment, sales, or roles where income includes commission, bonuses, or mileage payments, it’s important to know that pension deductions apply to all qualifying pay.
In practice, this means:
If you receive a quarterly performance bonus – pension contributions will be taken from it.
If your role includes mileage or travel-related income treated as taxable pay – pension will apply there too.
Commission-driven earners will see variable contribution amounts each month, depending on performance.
While that might sound like a smaller payslip on payday, it’s vital to remember that those deductions are an investment in your future income. Every euro saved through the scheme is matched by your employer and topped up by the State — meaning your retirement savings will grow faster than if you saved alone.
What Employees Should Do Now:
Check your payslip to understand what qualifies as pensionable income.
Speak with your employer or payroll team about how the new scheme will appear on your payslip.
Plan ahead for potential dips in take-home pay, especially in months where you earn extra bonuses or commissions.
Though automatic enrolment may mean adjusting to small changes in your net pay, it also brings long-term financial security. Being informed now can help you prepare — and make sure there are no surprises come January.
Do You Have Questions?
At Aspire Recruitment, we’re committed to helping candidates and employers stay informed about important changes that affect the workplace. If you’d like personalised guidance on how auto-enrolment might impact your pay or your team’s structure in 2026, our recruitment consultants are here to help.
This content was created with the help of AI and checked by our team.