Employees will have €4 paid into their pension for every €3 they contribute under the auto-enrollment scheme going to Cabinet this morning.
The move from Social Protection Minister Heather Humphreys will mean 750,000 without any pension will be automatically signed up for one in 2024.
Auto-enrollment will see all workers earning over €20,000 a year automatically signed up for a pension.
The worker will have to pay in, with contributions matched by their employer and a contribution from the State.
The scheme will be rolled out from early 2024, and phased in over 10 years at a cost of €2.8bn to the State out to 2034.
It is being phased to allow businesses time to prepare for the extra cost.
In years one to three, employees will have to put in a minimum of 1.5% of their salary.
The employer will match that, and the State will contribute 0.5% of the salary.
This will rise in increments every three years until, by year 10, it is 6% from both employee and employer - and 2% from the Government.
In other words: by then, for every €3 the worker puts in an additional €4 will be added.
This will be capped to the first €80,000 of someone's salary, with the State not matching anything above that.
Employees will be able to opt out from the scheme, but employers cannot.
Minister Humphreys will bring details of a new agency - the Central Processing Authority - to Cabinet this morning, which will be set up to manage the pension investments.
