[Ireland] Pension auto-enrolment and paid sick leave reforms

In Ireland, decisive steps are being made to expand the country’s social protection framework. The government has announced that a new pension auto-enrolment scheme and extended statutory sick leave will come into force from 2025, BW People reports.

The dual reform package has been created to support financial security during employment and after retirement.

Under the proposed auto-enrolment pension plan, eligible private sector employees aged 23-60, earning above €20,000 annually, will be automatically signed up for retirement contributions. 

The scheme will begin mid-2025 and is reportedly expected to align with the 2026 tax year, gradually increasing contribution levels from 1.5 per cent to 6 per cent for employers and employees. State top-ups will add a further incentive.

Ireland's statutory sick pay entitlement is also being increased in phases, going from the current five days to seven days in 2025, and climbing to 10 paid days by 2026. Employees will receive 70 per cent of their daily earnings, capped at €110 per day. This measure is intended to balance worker health needs with fair workplace rights across industries.

These initiatives were reportedly years in the making and are considered a significant shift in the Irish labour landscape. They bring Ireland closer to European standards in worker benefits while tackling the long-standing gap in pension coverage for non-public employees.

Source: BW People

In Ireland, decisive steps are being made to expand the country’s social protection framework. The government has announced that a new pension auto-enrolment scheme and extended statutory sick leave will come into force from 2025, BW People reports.

The dual reform package has been created to support financial security during employment and after retirement.

Under the proposed auto-enrolment pension plan, eligible private sector employees aged 23-60, earning above €20,000 annually, will be automatically signed up for retirement contributions. 

The scheme will begin mid-2025 and is reportedly expected to align with the 2026 tax year, gradually increasing contribution levels from 1.5 per cent to 6 per cent for employers and employees. State top-ups will add a further incentive.

Ireland's statutory sick pay entitlement is also being increased in phases, going from the current five days to seven days in 2025, and climbing to 10 paid days by 2026. Employees will receive 70 per cent of their daily earnings, capped at €110 per day. This measure is intended to balance worker health needs with fair workplace rights across industries.

These initiatives were reportedly years in the making and are considered a significant shift in the Irish labour landscape. They bring Ireland closer to European standards in worker benefits while tackling the long-standing gap in pension coverage for non-public employees.

Source: BW People