Everyone earning more than €20,000 a year will be automatically entered into a pension plan from early 2024.
People will be allowed to opt out of auto-enrolment after 6 months, but will be re-entered after two years.
The rate will start at 1.5 per cent of an employees wage and go up to 6 per cent 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: