Ireland's new Automatic Enrolment Retirement Savings Scheme, commencing on 1 January 2026, represents a major shift in how employers support long-term retirement planning for their staff. Under the new system, all employers will be legally required to register for the scheme and ensure full compliance with its operational requirements.

Employees aged 23 to 60 who earn over €20,000 per year and who do not already have a workplace pension will be automatically enrolled, while those aged 18 to 23 and 60 to 66 may choose to opt in voluntarily. Employers must complete their profile on the new portal, set up a direct debit mandate for contributions, and integrate payroll so that automatic notifications and deductions are processed correctly. They must also notify employees in writing of their enrolment date and keep records of any staff who wish to opt in or opt out.

For the first three years, contributions will be set at 1.5% of gross salary from the employee, 1.5% from the employer, and a 0.5% top-up from the Government, with rates increasing gradually over time. This creates a new financial obligation for employers, who will need to budget for rising contribution levels in the years ahead.

Administratively, the scheme introduces ongoing payroll responsibilities similar to PAYE and PRSI compliance, requiring accurate reporting and monitoring of employee eligibility. Overall, the Auto-Enrolment Scheme ensures that workers begin building meaningful retirement savings while placing clear compliance duties and cost considerations on employers as part of Ireland's evolving pension landscape.

Ireland's Research and Development (R&D) Tax Credit is one of the State's most valuable incentives for companies investing in innovation, scientific advancement, and technological development. The scheme allows eligible companies to claim a 30% tax credit on qualifying R&D expenditure, in addition to the standard corporation tax deduction, giving an effective relief of up to 42.5%.

To qualify, activities must involve systematic, investigative, or experimental work aimed at achieving scientific or technological advancement and resolving technical uncertainty. Eligible costs include employee salaries, materials, overheads, plant and machinery, and certain outsourced R&D carried out within the EEA or UK.

The credit can be used to reduce corporation tax liabilities or claimed as a cash refund over three years (50%, 30%, 20%), making it particularly attractive for start-ups and scaling companies. Recent legislative changes introduced the higher 30% rate and a requirement for pre-notification for first-time claimants or those returning after a three-year break.

Overall, the R&D Tax Credit is a cornerstone of Ireland's innovation strategy, helping companies reduce the financial burden of research activities while encouraging long-term investment in high-value, knowledge-based projects.

Section 472D TCA 1997, known as Key Employee R&D Relief, allows companies to assign a portion of their R&D tax credit to qualifying employees to reduce their income tax liability. This relief is designed to help businesses attract and retain highly skilled technical staff who spend the majority of their time on qualifying R&D activities.

Employees must not be directors and must meet strict conditions, including working full-time on eligible R&D. While PAYE must still be fully operated, the relief effectively lowers the employee's tax burden, making R&D roles more competitive and supporting Ireland's innovation-driven workforce.