However, there are relatively low numbers in the new scheme from the accommodation and food services sector
More than 800,000 workers are now enrolled in My Future Fund, which was launched only at the start of this year.
It has emerged that tens of thousands of workers in the construction and retail sectors are now paying into the new auto-enrolment pension. These sectors traditionally have low levels of pension coverage.
Around 7,000 workers have voluntarily signed up to My Future Fund, indicating that the scheme has been embraced by workers.
My Future Fund is the new state-sponsored auto-enrolment retirement savings system. It launched on January 1 and it is designed for employees aged between 23 and 60 who earn more than €20,000 but who do not have a workplace pension.
It involves automatic contributions from the employee, their employer and the State.
In the lead-up to the launch of the new scheme, it was expected that 750,000 people would end up enrolled in it.
The early success of auto-enrolment through My Future Fund is very encouraging
Figures provided to the Irish Independent by Social Protection Minister Dara Calleary show that 806,000 employees are now enrolled.
The higher number is thought to be due to large numbers becoming eligible in the last few months, as well as thousands of workers voluntarily opting into the scheme.
There is an even spread between men and women in the new scheme and age profile is also spread evenly.
About 131,000 construction workers are in My Future Fund, while 122,000 signed up from the wholesale and retail trade sector.
However, there are relatively low numbers in the new scheme from the accommodation and food services sector, relative to the numbers employed.
Mr Calleary said: “The early success of auto-enrolment through My Future Fund is very encouraging, with over 806,000 employees now saving for their retirement for the first time.
“It is particularly positive to see strong participation across sectors such as construction and retail, where historically pension coverage has been lower.”
Social Protection Minister Dara Calleary released the figures. Photo: Mary Browne
Irish Congress of Trade Unions pensions spokeswoman Dr Laura Bambrick said the scheme was proving to be a massive success.
“It is very encouraging that the number of workers saving for their retirement though auto-enrolment has surpassed a staggering 800,000 at the end of quarter one of the first year,” she said.
She added that it was not surprising that retail was the most popular type of employment of auto-enrolment participants.
“Retail is the biggest employer in the economy, but these jobs don’t tend to be good jobs,” Dr Bambrick said.
She was also not surprised at the low numbers working in hospitality who had been auto-enrolled.
The number of young, part-time and low-paid workers in hospitality was always going to mean auto-enrolment was a rarity
The 55,000 amounts to around only one in four of the people employed in hospitality.
“We were told the reason for the €700m Vat cut hand-out for this sector was to compensate business owners for increased payroll costs. This was always over-egged,” she said.
It was announced in the last budget that the Vat for the food-led hospitality sector and hairdressing would come down from 13.5pc to 9pc from July.
“The number of young, part-time and low-paid workers in hospitality was always going to mean auto-enrolment was a rarity,” Dr Bambrick added.
“The figures serve to further undermine the case for 9pc Vat.”