Under the auto-enrolment scheme employees will pay 1.5pc of their gross income into a personal retirement savings fund and employers do have to match it. The State will add another 0.5pc. Contributions will rise after four years with further progressive increases until year 10, when worker and employer will put in 6pc apiece and the State 2pc.
Tesco confirmed the size of its annual contribution as it announced a pay rise of 3pc for its retail and distribution staff, also from January 1.
From January 1 2026, all hourly-paid store and distribution colleagues will receive the pay increase, bringing the average hourly rate for an employee working in the company to €18.13, the company said.
The €3.5m investment annually in Auto-Enrolment will cover its 4,000 colleagues to support their savings for retirement, the company’s additional investment in pay and benefits will be over €15m in 2026, Tesco said.
Tesco said the latest increases build on over €30m invested in pay and benefits in the last two years. The business here is led by Ireland head Geoff Byrne.
The company said it will also invest €3m in additional permanent work hours for staff next year.
That’s targeted at larger stores and online operations, it said.
The investment in employees shows the commitment the company has for its workers, according to Maurice Kelly, people director at Tesco Ireland.
“This pay award and investment in additional hours for colleagues reflects our ongoing commitment to supporting their financial wellbeing and work-life balance.
“Along with market leading benefits for colleagues likes free Virtual GP care and our family leave policies, we’re ensuring Tesco remains a highly attractive place to work and leading the way in colleague salaries and benefits,” he said.
The pay increase is in line with inflation.
According to latest figures from the Central Statistics Office (CSO) inflation in Ireland has climbed to more than 3pc, driven by higher energy and food prices. The significant increases by the retailer look to be a way to ease pressure for its employees coming into 2026.
Tesco is one of Ireland’s largest grocery retailers with 188 stores. it employs over 13,500 people.
According to the company it is the largest retail buyer of Irish food and drink in the world, buying €1.6bn a year.