The changes will come into effect from early 2024.
Cabinet has approved the auto-enrolment pensions plan which will see those who earn more than €20,000 automatically signed up to make contributions for their retirement fund.
However, people will be allowed to opt out of auto -enrolment after 6 months, but will be re-entered after two years.
The new scheme will cost the state €2.8 billion, and it will see 750 thousand people who don't currently have a pension automatically signed up.
The rate will start at 1.5 % of an employees wage and go up to 6% after ten years.
Employers will legally have to match the payments into the pension with the State also topping up the fund.
Social Protection Minister Heather Humphreys says this will be above and beyond the State pension:
Business correspondent Joe Lynam exlains how the pension will rise in increments:
The Annual Garda Memorial Day Has Taken Place At Dublin Castle This Afternoon
Suspected Human Body Tissue Has Been Found In The Search For Michael Gaine In County Kerry
2 Separate Collisions In County Galway Last Night Have Left One Man Dead And Another With Serious Injuries
Major Fire Breaks Out Behind Sam's Takeaway In Leixlip
Remains Found In Monaghan Cemetery in search for "Disappeared"; Appeal Made On Kfm This Morning
Uisce Éireann Appeals To The Public In Kildare To Help Reduce Water Use As Warm Weather Continues
Castletown Controversy: Kildare TD Says OPW Minister Is Stoking Tensions Amid Criminal Investigation
