The Cabinet are set to consider a new €2.8 billion auto-enrolment pension scheme which would see the State topping up private pensions.
During a meeting on Tuesday morning, Cabinet is expected to approve the scheme that will see 750,000 people who don't currently have pensions be automatically signed up for one in 2024.
In the first three years, workers will put at least 1.5 per cent of their salary into their pension, matched by their employer. The State will then contribute 0.5 per cent.
There will then be a gradual increase so by year 10 of the scheme, workers will have €4 paid into their pension for every €3 they contribute.
The scheme will apply to all workers earning over €20,000 a year.
It is understood that employer contributions and the State top-up will be capped at €80,000 of an employee’s gross salary.
A person may opt out after six months and get a refund of their contributions. However, they will be re-enrolled after two years.
Employers will not have an option to opt out of the scheme.
The scheme is being brought to Cabinet by Minister for Social Protection Heather Humphreys.
Ms Humphreys has said she will bring details of a new agency to Cabinet, the Central Processing Authority, which will be set up to manage the pension investments.
The scheme is set to be rolled out from early 2024 and phased in over ten years in an effort to allow businesses time to prepare for the extra cost.
