Hire in Ireland

Quick overview

Ireland is a popular destination for employers due to its strong workforce, use of English, and EU membership.

The country’s employment laws provide clear rules for contracts, taxes, benefits, and working conditions.

• Official currency: Euro (EUR)
• Typical working hours: 39-40 per week
• Minimum hourly wage: €13.50
• Public holidays: 10 per year, plus 1 bank holiday
• Tax year: January to December

Taxes

Employers and employees in Ireland must pay separate taxes and social contributions.

Employer tax

Employers are required to pay Pay-Related Social Insurance (PRSI) on employee earnings.

• 8.9 percent on weekly income up to €395
• 11.15 percent on weekly income over €395

Employee tax

Employees pay several taxes, which are deducted from salaries by the employer.

• Income tax: progressive rates from 20 percent to 40 percent
• Universal Social Charge (USC): 0.5 percent to 11 percent depending on income
• Pay-Related Social Insurance (PRSI): 0 percent to 4.1 percent

Employee benefits

Irish legislation sets required employee benefits, and many employers offer extra perks.

Mandatory benefits

• Minimum paid annual leave: 20 working days
• Public holidays off
• Access to the public healthcare system (HSE)

Employers must also comply with statutory sick leave, maternity, paternity, and parental leave requirements.

Common non-mandatory employee benefits

• Private health insurance
• Pension contributions
• Cycle-to-work scheme
• Employee assistance programmes
• Gym memberships and wellness initiatives
• Extra parental leave or time off
• Life assurance and income protection
• Dental and vision plans
• Stock options
• Flexible working arrangements

Employment contract and conditions

Written employment contracts are legally required in Ireland and must be signed by both parties.

Contracts should specify job title, duties, salary, working hours, leave entitlements, notice periods, and any probation period.

Employers must also provide a pay statement and comply with classification rules for different types of employees.

Payment

Salary payments may be made weekly, fortnightly, or monthly, with monthly being most common.

Employers must issue payslips and pay salaries directly into employee bank accounts.

Employee rights and protections

Irish employment law guarantees several protections for employees.

• Signed written employment contract
• Statement of pay and regular payslips
• Safe workplace conditions
• Right to disconnect from work communications outside hours
• Protection against workplace discrimination
• Data privacy for personal information
• Fair dismissal processes
• Equality for part-time and fixed-term workers
• Whistleblower protection
• Continuity of rights in case of business transfers
• Right to join a trade union

Probation period

Probation periods are standard and generally last no longer than six months.

In special cases, probation may be extended up to a total maximum of twelve months, such as if extended leave occurs during probation.

Working hours

The normal workweek in Ireland is 39 to 40 hours, typically spread over five days.

Working time legislation limits the maximum average working week to 48 hours, calculated over a four-month period.

Leave

Several forms of leave are regulated under Irish law.

• Annual paid leave: at least 20 days
• Public holidays: 10 per year plus 1 bank holiday
• Sick leave: 5 paid sick days (increasing to 10 by 2026)
• Maternity leave: 26 weeks paid, plus up to 16 weeks unpaid
• Paternity leave: 2 weeks paid
• Parents leave: 9 weeks paid within first 2 years of child’s life
• Parental leave: up to 26 weeks unpaid before child is twelve

Remote work

Ireland supports remote and flexible work arrangements, subject to agreement with the employer.

Employers should address work-from-home provisions, data security, and equipment in employment policies or contracts.

Termination

Termination of employment must follow a documented, fair procedure in compliance with Irish law.

• Permitted grounds: capability, conduct, redundancy, legal requirement
• Notice periods vary based on employee tenure
• No severance is required unless stipulated by redundancy rules
• Immediate dismissal allowed for gross misconduct
• Statutory redundancy payments apply after two years of continuous service

Work permits and visas

Non-EU or non-EEA citizens must obtain proper work permits or employment visas to work legally in Ireland.

Different types of employment permits exist, including Critical Skills and General Employment Permits.

Employers may need to assist employees in the application process for sponsoring employment permits.

Employer of Record in Ireland

An Employer of Record (EOR) is a third-party entity that legally employs workers on behalf of a client company in Ireland.

• Handles payroll and tax compliance
• Manages local statutory benefits and legal requirements
• Issues employment contracts and payslips
• Files all required taxes and contributions

The client company maintains day-to-day supervision of the employee’s work, while the EOR ensures legal employment in Ireland.

What are the main options for hiring in Ireland?

• Direct employment via a local entity
• Engagement via an Employer of Record (EOR)
• Applying independent contractor relationships (not suitable for full-time roles)

What is the process for setting up a local company?

Register the company with the Companies Registration Office, then set up payroll and tax systems in compliance with local rules.

Can employees be engaged as independent contractors?

This is risky if the worker is dedicated full-time to one company, as it may breach employment laws.

Are employees provided with all statutory rights under an EOR?

Yes. Employees hired through an EOR receive the same legal rights and statutory benefits as other employees in Ireland.

Who handles tax filing under an EOR?

The Employer of Record manages all tax filings and remittance of social insurance contributions for the employees it hires on behalf of client companies.

How are employees paid?

Employees are paid via bank transfer according to the established pay cycle, usually monthly. Payslips are provided with each payment.