For the new Auto Enrollment Pension scheme, for those earning under 20k p.a., they need to “opt in”, as automatic enrollment only happens, for those on 20k+.
It is mandatory that Employers contribute to the auto enrollment pension scheme, it is not optional.
It would be worth your while opting in, as leaving aside tax relief, the employer and the state will both add contributions on top of the employee contributions.
As it is being brought in in phases, over aperiod of 10 years, and there are restrictions and limits, its difficult to give exact numbers, most of the examples have someone earning 20k.
Employer & Employee contributions, both start at 1.50 %, and very slowly rise, to 6.00 % from year 10.
There is also a state top up, so in the first 3 years, Employee 1.50 %, Employer matches this, and the state tops up by 0.50 %. Note there are limits and restrictions.
If you contribute say €250 in each of the first 3 years, then a total of €583.33 per annum, will actually go into your Pension Fund.
Employee : 250
Employer: 250
The State: 83.33
In year 4, the above numbers double etc
Etc
https://www.gov.ie/en/campaigns/0ab04-automatic-enrolment-for-pensions-hub
Bonkers also have useful article about this:
After years and years of delays and false starts the new auto-enrolment pension scheme is set to come into force soon.