Employee benefits in Ireland

Overview of employee benefits

Employees in Ireland receive a mixture of mandatory and optional benefits. These include entitlements required by law and additional perks offered by many employers.

Mandatory benefits

Certain benefits must be provided by employers under Irish law. The main compulsory benefit relates to retirement savings.

• Personal retirement savings account (PRSA): Employers who do not offer an occupational pension, or require employees to wait more than six months to join it, must provide access to a PRSA. Employers are not required to contribute but must give access within six months of employment starting.

No minimum employer contribution is mandatory for a PRSA. Employees may decide whether or not to join.

Common non-mandatory benefits

Many employers in Ireland provide extra benefits to attract and retain staff. These benefits are not legally required but are widely offered, particularly in larger organizations.

• Private healthcare: Covers medical expenses not included in the public system. Private health insurance is often provided, but its value is taxable as a benefit.
• Pension contributions: Employers may contribute to pension schemes that receive tax relief if approved under Irish legislation.
• Life assurance: Some employers offer life insurance after probation. The value is considered a taxable benefit for the employee.
• Income protection: Replaces wages if an employee cannot work due to illness or injury. Coverage level and terms depend on the employer’s policy.
• Employee assistance programme: Provides confidential counselling services for staff and their families.
• Paid leave supplements: While statutory maternity, paternity, and adoption leave are mostly unpaid by employers, some companies offer a salary top-up and additional time off.
• Cycle-to-work scheme: Employees purchase bikes and accessories through a tax-saving initiative operated by employers.
• Gym membership: Offered by some employers as a taxable non-cash benefit.
• Dental and vision plans: Sometimes included in private healthcare packages.
• Extra holidays: Employers may give 4–8 additional days off, or allow employees to buy extra holiday days.
• Stock options: Availability and tax treatment vary. Regulatory guidance is still developing.
• Flexible work arrangements: Includes compressed schedules, flexible hours, early finishes, and remote work options.
• Training and development: Courses and tuition reimbursement relevant to the employee’s job are commonly provided. Training directly related to work is not taxable.

Tax treatment of non-mandatory benefits

Most non-cash benefits provided by employers are taxable. Employees can receive up to two small non-cash benefits each year, tax-free, if the combined value does not exceed €1,000. All other benefits are subject to income tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI).

Pension developments

The Irish government is planning for auto-enrolment into pension funds, which may soon increase retirement benefit coverage. Current rules only require PRSA access if no occupational pension is offered or employees must wait over six months to join one.

Healthcare entitlements

All residents can access public healthcare funded through taxation. Many people, however, also use private healthcare options for additional coverage or shorter waiting times. Private health cover provided by employers is considered a taxable benefit.

Additional perks

Some companies in Ireland provide unique or company-specific perks, such as subsidized meals, wellness programs, or technology allowances. Their availability depends on company policy and industry standards.