Pension plan could see State contributing €1 for every €3 saved

It is expected workers and their employers will be expected to contribute up to 6% of their salary - with a further top-up from the State.

Auto-enrolment pensions should be phased in over two to five years, according to business group ISME.

Cabinet will be updated tomorrow by Social Protection Minister, Heather Humphreys, on plans for the State and employers to contribute towards employee pensions.