Automatic Enrolment Retirement Savings System Act 2024 section 61

Rates of contribution

Section 61 sets out the phased contribution rates for participants, employers, and the State under the automatic enrolment system, increasing in stages over a ten-year period.

• Participant and employer contributions each start at 1.5% of emoluments in years 1 to 3, rising in increments of 1.5 percentage points every three years until reaching 6% from year 10 onwards.
• The State contribution starts at 0.5% of emoluments in years 1 to 3, rising in increments of 0.5 percentage points every three years until reaching 2% from year 10 onwards.
• At the maximum rates, total contributions amount to 14% of emoluments: 6% from the participant, 6% from the employer, and 2% from the State.
• The phased approach is designed to ease participants and employers into the system gradually, avoiding a sudden financial burden at the outset.