Employer of Record in Ireland

Businesses can only operate smoothly in Ireland if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Ireland below, to avoid any compliance issues.

Employment Contract Requirements

In Ireland, hiring and contractual formalities are governed by a well-defined legal framework. Employers and employees must adhere to these mandatory formalities to ensure compliance with Irish employment laws. Key hiring and contractual formalities include:

• Job Offer and Acceptance
• Employment Contract
• Registration with Revenue
• Employment Permits (if applicable)
• Taxation and Deductions
• Employment Rights Notification
• Health and Safety Compliance
• Employment Equality Regulations
• Statutory Employee Rights
• Employee Benefits Information
• Probationary Period (if applicable)
• Employee Handbook or Company Policies

Onboarding Process

We can help you get a new employee started in Ireland quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Ireland

In Ireland, adult employees are subject to a maximum weekly working limit of 48 hours. Additionally, they are entitled to short breaks, receiving 15 minutes for every four and a half hours worked, or 30 minutes for every six hours worked during the workday.

Overtime in Ireland

In Ireland, there is no specific legal requirement for mandatory overtime pay at a fixed rate. Overtime pay is typically determined through employment contracts, collective agreements, or industry-specific regulations.

Probation Period in Ireland

Probation periods are not mandatory, but they are commonly used by employers. The duration of a probationary period may vary depending on the employer's discretion but generally lasts for three to six months (but cannot exceed 12 months, in exceptional circumstances).

Fiscal Year in Ireland

1 January- 31 December is the 12-month accounting period that businesses in Ireland use for financial and tax reporting purposes.

Payroll Cycle in Ireland

The payroll cycle in Ireland is usually Monthly , with employees being paid by the last working day of the month.

Minimum Wage in Ireland

The minimum wage for employees in Ireland is typically 12.70 EUR per hour, amounting to ~2,032 EUR per month for a typical 40 hour work week.

Bonus Payments in Ireland

In Ireland, there is no specific legislation mandating the payment of 13th salaries or bonuses. The provision of such additional payments, is typically a matter of individual employment contracts or collective agreements negotiated between employers and employees or their representatives.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 11.05% on top of the employee salary in Ireland.

Employee Payroll Tax Contributions

In Ireland , the typical estimation for employee payroll contributions cost is around 4.5% - 12%%.

Individual Income Tax Contributions

Income tax is calculated based on a tax rate band. The individual income tax is 20% until a certain level of income and 40% for any amount above that income.

Pension in Ireland

The State Pension (Contributory) is available to individuals aged 66 and above who have accumulated sufficient Pay Related Social Insurance (PRSI) contributions. To be eligible, individuals must have made at least 520 full-rate PRSI contributions, equivalent to 10 years of contributions.

Mandatory Leave Entitlement in Ireland

The annual leave entitlement in Ireland is 4 weeks for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Ireland

In Ireland, employees are entitled to nine public holidays a year, for which they are given a day off. These public holidays are:

Paid Time Off in Ireland

Full-time employees are entitled to 20 days of paid time off (PTO) a year. Part-time employee are entitled to leave worth 8% of the hours worked.

Maternity Leave In Ireland

All female employees in Ireland, regardless of their length of service or weekly hours, are entitled to 26 weeks of maternity leave. Additionally, mothers of newborns can opt for an additional 16 weeks of unpaid maternity leave, resulting in a total of 42 weeks of statutory maternity leave. A minimum of 2 weeks must be taken before the end of the week of the birth.

Paternity Leave In Ireland

Fathers are granted a total of two weeks of paternity leave, which can be utilized within the first six months following the birth or placement of a child through adoption. This is paid at a weekly rate of 274 EUR. Eligible parents include the following:

• The father of the child
• The partner (spouse, civil partner, or cohabitant) of the mother of the child
• The parent of a donor-conceived child

Sick Leave In Ireland

Employers must provide sick pay equal to 70% of the employees normal pay, capped at EUR 110 per day) for 5 days. The number of paid sick days is due to increase as follows:

• 7 days in 2025
• 10 days in 2026

Parental Leave In Ireland

Parents have the right to take up to 26 weeks of unpaid parental leave for each eligible child under the age of 12.

Bereavement Leave

This is at the employer's discretion, but it is common that an employee may be granted 3 - 5 days paid leave for the death of an immediate family member.

Jury Service Leave

An employee is entitled to be paid for time spent attending jury service. A certificate of attendance can be requested.

Termination Process in Ireland

In Ireland, the termination process for employment is governed by labor laws and regulations designed to ensure fairness and protect the rights of both employers and employees. Termination can occur for various reasons, but it must be carried out in accordance with legal requirements to be considered just and lawful. Below are some of the reasons that may be considered justifiable for terminating an employment contract in Ireland:

• Redundancy
• Misconduct
• Poor Performance
• Breach of Contract
• Insolvency or Closure
• Health and Safety
• Legal Obligations

Notice Period in Ireland

As per the contract terms, the notice period varies based on the duration of employment. Both employees and employers should provide notice as outlined below:

• For employment of 13 weeks to 2 years: 1 week of notice.
• For employment between 2 and 5 years: 2 weeks of notice.
• For employment between 5 and 10 years: 4 weeks of notice.
• For employment between 10 and 15 years: 6 weeks of notice.
• For employment of 15 years or more: 8 weeks of notice.

Severance in Ireland

Severance pay is provided exclusively to employees facing redundancy, provided they have completed at least 2 years of service. The calculation is based on 2 weeks' pay for each year of service, with an additional week's pay included. This is subject to 600 EUR per week.