[Ireland] Minimum wage hikes and pension auto-enrolment delayed ‘a number of months’

Ireland’s Public Expenditure Minister Jack Chambers has announced that the deadline for the introduction of the pension auto-enrolment scheme is now “likely to be pushed beyond September”, Irish Independent reports.

Minimum wage increases planned by the government will also be delayed as part of plans to support businesses through the economic uncertainty brought by US tariffs.

According to Mr Chambers, Social Protection Minister Dara Calleary will deliver an update to the government “in the coming weeks” on the specific timing of the rollout of pension auto-enrolment.

Speaking to RTÉ’s This Week, Mr Chambers reportedly said that while pension auto-enrolment is likely to be pushed past September, “it’s likely to still occur in the short number of months after September”.

“Auto-enrolment is going to be absolutely essential to build sustainability for pensions in the long-term and the exact nature of the commencement is what Minister Calleary is currently considering and it's likely to like likely to be deferred for a very short period.”

The scheme has already been deferred on previous occasions and Mr Chambers acknowledged that there have been “a couple of issues” including a significant amount of administrative work to bring people under the framework and a desire from the government to bring it in line with other projects.

“We are absolutely committed to auto-enrolment. There has to be sustainability with our pension system, and we have to provide for pensions, and I think this has been a really important reform in the last two years and I expect the commencement date to be adjusted only very marginally.

“This isn't something that's going to be deferred for a longer period, and it’s something that may be deferred for a short number of months.”

Nearly 800,000 working people between 23 and 60 who are in employment but not enrolled in an occupational pension scheme will be eligible for the pension auto-enrolment scheme.

The scheme is reportedly intended to ensure that people begin saving for their pensions earlier and are not left with the State pension alone at retirement.

Workers aged between 23 and 60 will be automatically enrolled on the scheme if they earn more than €20,000 and are not already enrolled in an occupational pension scheme. Employee contributions will be matched by their employers, and the State will contribute an additional top-up.

In addition, Mr Chambers reportedly stated that planned increases to the minimum wage may be delayed

“We’re considering, I suppose, the overall cumulative impact on costs for businesses and the competitiveness within the Irish economy,” he said.

“The number one focus for Government is to protect jobs, to drive competitiveness, and that’s why separately, we’ll be establishing a cost of business advisory forum on how to sustainably manage the overall cost for business.

“Within that, the Government is considering how we sequence the overall timing of the implementation for the minimum wage, and that’s something that will be brought forward to Government shortly.”

The Irish government has committed to replacing the national minimum wage with a national living wage, set at 60 per cent of the median wage, by 2026.

Source: Irish Independent

(Quotes via original reporting)

Ireland’s Public Expenditure Minister Jack Chambers has announced that the deadline for the introduction of the pension auto-enrolment scheme is now “likely to be pushed beyond September”, Irish Independent reports.

Minimum wage increases planned by the government will also be delayed as part of plans to support businesses through the economic uncertainty brought by US tariffs.

According to Mr Chambers, Social Protection Minister Dara Calleary will deliver an update to the government “in the coming weeks” on the specific timing of the rollout of pension auto-enrolment.

Speaking to RTÉ’s This Week, Mr Chambers reportedly said that while pension auto-enrolment is likely to be pushed past September, “it’s likely to still occur in the short number of months after September”.

“Auto-enrolment is going to be absolutely essential to build sustainability for pensions in the long-term and the exact nature of the commencement is what Minister Calleary is currently considering and it's likely to like likely to be deferred for a very short period.”

The scheme has already been deferred on previous occasions and Mr Chambers acknowledged that there have been “a couple of issues” including a significant amount of administrative work to bring people under the framework and a desire from the government to bring it in line with other projects.

“We are absolutely committed to auto-enrolment. There has to be sustainability with our pension system, and we have to provide for pensions, and I think this has been a really important reform in the last two years and I expect the commencement date to be adjusted only very marginally.

“This isn't something that's going to be deferred for a longer period, and it’s something that may be deferred for a short number of months.”

Nearly 800,000 working people between 23 and 60 who are in employment but not enrolled in an occupational pension scheme will be eligible for the pension auto-enrolment scheme.

The scheme is reportedly intended to ensure that people begin saving for their pensions earlier and are not left with the State pension alone at retirement.

Workers aged between 23 and 60 will be automatically enrolled on the scheme if they earn more than €20,000 and are not already enrolled in an occupational pension scheme. Employee contributions will be matched by their employers, and the State will contribute an additional top-up.

In addition, Mr Chambers reportedly stated that planned increases to the minimum wage may be delayed

“We’re considering, I suppose, the overall cumulative impact on costs for businesses and the competitiveness within the Irish economy,” he said.

“The number one focus for Government is to protect jobs, to drive competitiveness, and that’s why separately, we’ll be establishing a cost of business advisory forum on how to sustainably manage the overall cost for business.

“Within that, the Government is considering how we sequence the overall timing of the implementation for the minimum wage, and that’s something that will be brought forward to Government shortly.”

The Irish government has committed to replacing the national minimum wage with a national living wage, set at 60 per cent of the median wage, by 2026.

Source: Irish Independent

(Quotes via original reporting)