The Government accepted in principle a Sinn Féin Bill abolishing the mandatory retirement age in the Dáil on Thursday night.
Minister of State for Justice David Stanton said the Government had decided not to oppose the Bill.
“This is notwithstanding that there are serious technical problems with the Bill as drafted and that there are serious policy and expenditure issues that need to be considered very carefully,” he added.
Mr Stanton said it should be noted Ireland did not have a mandatory statutory retirement age in the private sector, where retirement issues were regulated by employment contracts but it existed in the civil and public services.
The Bill, known as the Employment Equality (Abolition of Mandatory Retirement Age) Bill 2016, will now go to a Dáil committee.
Sinn Féin social protection spokesman John Brady TD said he welcomed the unanimous Dáil support to bring an end to what had been a long-standing practice of discrimination against people who were forced to retire against their will.
Mr Brady said the Bill addressed a multitude of serious issues facing older people, including the fact many were made to retire at the age of 65 years and then forced on to a jobseekers’ payment for a year before they could receive their State pension.