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Good to know
Both the employee and the employer are obligated to participate in the pay-related social insurance system (PRSI), which consists of various social welfare benefits. The employee is responsible for a 4% contribution, while the employer’s portion amounts to 11.05% of the taxable employment income.
Currency
Euro (EUR)
Capital
Dublin
Employee Costs
10%
Local Language
English
Employer Taxes
8.80-11.05%
Public Holidays
9 Days
Payroll Frequency
Monthly
Tax Year
1st Jan – 31st Dec
Are you ready to hire in Ireland?
Ireland has a highly educated and skilled workforce with a strong emphasis on education, particularly in sector like technology, engineering, pharmaceuticals, and finance. This means you can find qualified candidates to fill a wide range of roles. Ireland’s reputation as a business-friendly destination, coupled with its favourable corporate tax rates, has attracted many multinational corporations to set up their European headquarters within its borders.
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Minimum Wage
Effective January 1, 2023, the national minimum wage in Ireland stands at 11.30 EUR per hour. Depending on the employee’s age, the wage rates are structured as follows:
– 20 years and older: 11.30 EUR per hour
– 19 years: 10.17 EUR per hour
– 18 years: 9.04 EUR per hour
– Under 18 years: 7.91 EUR per hour
The wage rates are tailored to different age groups, ensuring equitable pay based on age categories.
Working Hours
Standard Working Hours
The standard working week is 40 hours, with a legal maximum of 48 hours. This is usually spread over 5 days. The standard work week is Monday – Friday.
Overtime
The arrangement for overtime pay is a matter to be mutually agreed upon by both the employer and the employee, as there is no mandated obligation for employers to offer extra compensation for overtime labour.
Payroll
Employees have the option of receiving their pay on a weekly or monthly basis, with the condition that payments must not be later than the last working day of each month. Additionally, the law does not mandate any provisions for 13th salaries.
Leave
Paid time off
The standard annual paid leave entitlement in Ireland is 4 weeks.
Sick Pay
Employers are entitled to a minimum of 3 days of sick pay annually, known as statutory sick pay. This payment is provided by employers and amounts to 70% of their regular daily wage, capped at a maximum of €110 per day. To qualify for this benefit, employees need to have a minimum employment duration of 13 weeks before they become eligible to claim statutory sick pay.
Maternity Leave
Pregnant employees are entitled to 26 weeks of maternity leave. During this period, they may be eligible for Maternity Benefit from the Department of Social Protection. After the 26 weeks, eligible employees can take an additional 16 weeks of unpaid maternity leave. Employees must notify their employer at least 4 weeks before the intended start of maternity leave.
Paternity Leave
Fathers can take up to 2 weeks of paternity leave. Paternity leave must be taken within 26 weeks of the birth or adoption of the child. During paternity leave, fathers may be eligible for paternity benefit from the Department of Social Protection. Employers are not obligated to pay their employees during this time.
Termination
Termination of Employment
Employers have the authority to end a fixed-term contract based on reasons such as business needs, personal reasons, or worker misconduct. Such termination requires providing notice and providing a written explanation.
Employees facing redundancy are eligible to receive a minimum severance package consisting of one week’s salary (with a maximum limit of EUR 600) in addition to two weeks salary for each year of service. Dismissed employees typically have the right to receive any outstanding wages along with compensation for any accrued but unused annual leave.
Notice Period
The minimum notice period in Ireland is 1 week and can increase up to 8 weeks’ notice period depending on the employees length of service.
Probation Period
The common probationary period is between 3 to 6 months (it must not exceed 12 months).
Visa
The visa rules in Ireland depend on the individuals nationality and the purpose of their visit. Ireland is a member of the European Union’s Schengen Area, allowing visa-free travel for citizens of certain countries for short stays of up to 90 days within a 180-day period.
However, citizens of non-EU countries usually need to apply for a visa before traveling to Ireland. There are different visa categories, including tourist visas, business visas, study visas, and work visas, each with specific requirements and processing times.
A short stay ‘C’ Visa include the types of stay including Business, Conference or event, Tourist, and Internship.
A long stay ‘D’ Visa is for applicants intending to stay in Ireland for over 90 days. This can be to study, work or live permanently in Ireland.
EEA citizens can seek employment in Ireland without the need for a work permit, while non-EEA citizens must apply and pay for a work permit or green card. Initially, this permit is issued for a duration of two years.
VAT
The standard rate of VAT in Ireland is 23%.
