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Country Guide

Ireland

Hiring in Ireland at a glance

CURRENCY
€ Euro / EUR
WORKING HOURS
39 - 40 hours / week
PUBLIC/BANK HOLIDAYS
9 days - public holidays and 1 day - bank holiday / per year
CAPITAL
Dublin
LOCAL LANGUAGE
Irish & English
REMOTE WORKERS
216,000
MINIMUM HOURLY SALARY
€ 11.30
TAX YEAR
1st Jan - 31st Dec
DATE FORMAT
DD / MM / YYYY
MISCLASSIFICATION PENALTIES
statutory rights, minimum wage, holiday pay, unpaid taxes, plus interest and penalties for employee misclassification
FUN FACT
Over 80 million people around the world claim Irish heritage

Employer tax: 

8,8% - 11,05%

Pay-related social insurance contributions: 8,8%  on income up to €395 p/w & 11,05% on income over €395 p/w

Employee tax: 

20,5% - 48%

Universal social charge (USC): 0,5% - 4%

Pay-related social insurance (PRSI): 0% - 4%

Income tax: Ireland has a progressive income tax of 20% to 40% (depending on family status and income amount)

Ireland Employment Cost Calculator

Use our handy calculator to understand what are all the employment costs you have to consider in Ireland.

Provide us with some extra details and we will send you a full breakdown of the salary costs.

Employer of Record in Ireland

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An Employer of Record is the legal employer of a worker in Ireland. As such, the Employer of Record takes care of all Ireland compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

the employer of Record is responsible for:

Ensuring their employment is compliant with local employment laws
Processing local payroll
Filing employment related taxes and returns
Issuing payslips to the employee
Distributing salary payments

How Employer of Record works

COMPANY

Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

BOUNDLESS

Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

EMPLOYEE

The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory Employee Benefits

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Personal retirement savings account

It is an alternative to the occupational pension scheme for the first six months of employment. There are no mandatory contributions by the employer.

Common Non-mandatory Employee Benefits

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Cycle-to-work scheme
Employee assistance programme
Employer pension contribution
Private Health insurance
Life assurance
Income protection
Paid Maternity, Paternity and Adoption Leave
Gym membership
Extra time off and parental leave
Dental and Vision Plan
Stock Options
Work Flexibility

Employee Rights and Protections

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Employment contract signed by both the employer and the employee
Statement of pay
Safety in the workplace
Right to disconnect
Protection from discrimination
Personal information protection
Protection against unfair dismissal
Protection according to classification (equal rights for part-time and fixed-term employees)
Whistleblower protection
Protection in case of business transfer
Work unions

Paid time off: 20 working days

Paternity leave: five weeks

Sick leave: 3 paid sick days (will increase to 10 days by 2025)

Parental and parental leave: 7 weeks of paid leave (€245 per week) during a child's first two years (parents); up to 26 weeks of unpaid leave before the child turns twelve (parental).

Maternity leave: Female employees get 26 weeks of paid maternity leave and can receive an extra 16 weeks of unpaid leave. At least four of the weeks of maternity leave must be taken after giving birth

Probation Period

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There are no specific rules but generally lasts 3 - 6 months, with an option to extend to 11 months. During probation, the employer can end the employment with one week's notice.

Payment Frequency

Weekly, fortnightly or monthly (monthly being more common)

End of Employment

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To lawfully end employment, the employer must have and follow a straightforward and documented procedure. The dismissal of an employee is deemed fair if it is because of their capability, conduct or capacity, redundancy, law violation or for some other substantial reason.  The length of notice periods vary and depend on how long employees have been with the company.

An employee can be dismissed without notice if committing gross misconduct such as assault, drunkenness, bullying, theft or other severe employment policy breach.

Statutory redundancy payment kicks in after two years of continuous work with the employer. There is no requirement for employers to pay severance to employees who have been terminated.

Frequently Asked Questions

What are my options if I want to hire a worker in Ireland?

While there are generally four ways of employing people across borders, not all are legal or sensible. Here is an overview of each way to employ a worker in Ireland, outlining the potential cons.

HQ country employment & payroll

While the person is in Ireland, they are employed and payrolled directly by the company’s HQ entity.
Cons: This may appear attractive, but it generally isn't legal in the long term.
HQ payroll won't be possible if the person is not a tax resident in the HQ country.

Independent contractor agreements

People are locally registered as sole traders or limited liability company owners in Ireland and invoice for their work. There is no direct employment relationship.
Cons: In Ireland, this is not a compliant or legal way to engage full-time workers who work solely for your company. There will be challenges in attracting and retaining talent.

Direct local employer setup

The company sets up as a fully-compliant local employer. This often involves setting up a local entity and local tax registration.
Cons: Expensive, time-consuming, high-level of complexity. Unknowns around how obligations and costs will evolve over time. There will be a need to stay on top of changes in regulations.

Partnering with an Employer of Record Ireland /full-service Professional Employer Organisation

Employment is handled by a platform that specialises in employing people on behalf of customer companies. The Employer of Record helps to hire and pay employees.
Cons: For some countries, the ongoing costs may be higher than direct employment. Some education is needed to inform employees about how the employment relationship will work.

How long does it take to set up a company in Ireland?

Setting up a local company in Ireland is relatively straightforward and involves registering in the Companies Registration Office. However, the difficult part comes after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed. Here is an overview of everything you will find yourself needing to do.

Can I employ people as independent contractors in Ireland?

While many employers practice employing remote workers as independent contractors, it's a bad practice. If an individual is giving their full and undivided attention to your company in Ireland, treating them as an independent contractor is a likely breach of Irish employment laws and of those in your country.
Your company could be liable for fines on owed holiday pay, sick pay, social welfare payments, paternity benefit, maternity benefit, or other legal measures. Since the individuals you are working with do not receive the benefit of local employment laws and protections that are often afforded to people working full-time hours.

How much does it cost to employ someone in Ireland?

As with every other country, there are certain costs associated with employing a worker in Ireland that come on top of the gross salary you are offering. In Ireland that is Pay-related social insurance contribution. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.

What does HR compliance mean in Ireland, and why does it matter?

When you hire employees in Ireland, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws and regulations regarding employment and work practices. Complying with local employment law in Ireland is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but to minimise your risk of liabilities as an employer. Being compliant means respecting and following all local labour laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, working hours regulations.

What does Employer of Record mean in Ireland?

It means that Boundless is the legal employer of the individual, as far as the Irish government, tax, and employment authorities are concerned. We are responsible for:
  • informing you about any pre-employment requirements
  • ensuring their employment is compliant with Irish employment law
  • informing you about the length of the maternity leave, paternity leave, public holidays, illness benefits, medical benefits
  • providing a locally compliant employment contract
  • processing local payroll
  • filing employment-related tax returns
  • issuing payslips to the employee
  • distributing salary payments
  • payments to the local tax authorities
Customers that work with an Employer of Record in Ireland are responsible for:
  • sourcing and recruiting their own workers
  • managing the employee’s day-to-day work load
  • contributing to the personal / professional development of the employee through their work
  • following any guidance we give on employment and HR best practices or legal obligations in Ireland, such as the employment contract, public holidays, annual leave, sick leave, maternity and paternity benefits, probationary periods, overtime pay, statutory redundancy payments, liability insurance and many others
  • ensuring that payroll bills relating to their team are paid to Boundless before the cut-off point in each pay cycle

Who is responsible for filing and paying employees' taxes and social insurance contributions in Ireland if employing through an Employer of Record?

Boundless as the Employer of Record Ireland files all pertinent taxes and PRSI contributions as they relate to the compliant employment of an individual in their home country.

How does Boundless as an Employer of Record Ireland ensure HR compliance in Ireland?

We carefully choose employment lawyers or advisories to partner with in each country we operate in, including Ireland. They ensure the Ireland employment contracts, and any other relevant documents required for new employees comply with the local jurisdiction. We have thorough discussions on specific norms such as payroll services, social protection, data protection, notice period or work-from-home regulations. Whenever a potentially sensitive issue arises in Ireland, our internal team contacts the relevant firm to ensure all steps are taken to resolve it promptly.

What are the legal responsibilities of a company when they use an Employer of Record service like Boundless in Ireland?

The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues.
Boundless ensures compliance with Irish-specific procedures, practices and labour laws while employing people and teams on behalf of the company.

Do employees get all their rights and benefits when employed through an Employer of Record in Ireland?

Any new employee that is locally employed through an Employer of record gets full employment rights and benefits as specified in Irish employment law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more. All Ireland-based employees receive healthcare through the public healthcare system - Health Service Executive (HSE), which is funded by general taxation.

What taxes do I need to pay in Ireland?

In Ireland, both employers and employees have to pay taxes. For employers, these include Pay-related social insurance contributions and for employees, they include Income tax, Universal social charge (USC), and Pay-related social insurance.  To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.

Choose Boundless as your employment partner in Ireland
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info@boundlessHQ.com
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