New Act Allows Thousands to Work Past 65 Before State Pension Eligibility
A new law effective June 29th allows thousands of employees to work past their contractual retirement age if it's below 66. This gives workers the option to continue employment until State pension eligibility, benefiting those facing income drops. Employers must respond to requests or face fines.
The Employment (Contractual Retirement Ages) Act 2025 will take effect on June 29th, allowing thousands of employees to work an extra year before retiring, as confirmed by the Department of Enterprise, Tourism and Employment (Dete).
This legislation enables employees with a contractual retirement age below the State pension age of 66 to notify their employer of their desire to continue working. A code of practice outlines the system, and employers failing to provide a reasoned response to an employee's request may face a fine of up to €5,000.
The Act does not apply where the retirement age is 66 or above, nor does it affect roles with legally set retirement ages, such as the Defence Forces. Employees must inform their employer of their intention not to retire between three months and one year before their scheduled retirement date. While employers can enforce retirement policies for legitimate aims, this must relate to the wider grade or role, not just the individual. The Irish Congress of Trade Unions (Ictu) welcomed the law, noting it strengthens workers’ rights for those with mandatory retirement ages below 66.