Rounding will be conducted on a voluntary basis and the 1 cent and 2 cent coins will remain legal tender. The total amount of any bill will be rounded down or up to the nearest 5 cent. This would only apply to cash payments.
Ireland is the latest country to adopt a rounding policy; Belgium, Denmark, Finland, Hungary, The Netherlands and Sweden already do so.
Showing that the move could save the Irish mint (and ultimately taxpayers) money, the Central Bank of Ireland said a 1 cent coin costs more to make than its face value, at 1.65 cents to produce. A 2 cent coin costs 1.94 cents to produce, it added.
It could take a while for the coins to drop out of the system, however, with many copper cent coins presumed to be hoarded in piggy banks and jam jars. As of 12 June 2015, 1,096,853,216 two cent coins have been issued into circulation in Ireland, amounting to €21,937,064.32 euros (around $24.8 million).
Meanwhile, 1,384,491,236 one cent coins have been issued into circulation in Ireland amounting to 13,844,912.36 euros.
Follow us on Twitter: @CNBCWorld