Employing in Ireland
Everything you need to know about employing in Ireland — from contracts and payroll to leave, benefits, and termination.
What to expect when employing in Ireland
If you’re planning to start employing in Ireland, it’s important to understand the local rules around contracts, payroll deductions, leave, and termination. Ireland is a straightforward market to hire in once the basics are set up correctly, but it still has clear statutory protections for employees and a defined process for payroll tax reporting.
For international employers, this is where an Employer of Record Ireland solution is often the simplest route. Your EOR partner employs the worker locally, runs payroll and statutory deductions, and helps keep employment documentation aligned with Irish requirements, while you manage the day-to-day role.
Onboarding employees in Ireland
How long onboarding usually takes
Onboarding speed depends on how quickly you can provide the required details (role, salary, start date, working pattern, and employee information). When employing in Ireland through an EOR, onboarding is often driven by document readiness and payroll cut-offs rather than long local registration timelines.
Irish employment terms and contracts
In Ireland, employees must receive key written terms shortly after starting work. This includes a “day 5” statement of core terms and further terms within set timeframes.
A contract (and the written terms that sit alongside it) cannot take away statutory rights such as minimum pay, holiday entitlements, or notice. Your EOR arrangement should also cover the practical protections employers typically expect, such as confidentiality, post-termination obligations where appropriate, and clear notice provisions that reflect both Irish law and the seniority of the role.
Employment status and worker protections
Most hires in Ireland are engaged as employees under a contract of employment. Employees benefit from statutory protections covering areas such as working time, annual leave, public holidays, and protections around dismissal once qualifying service is met.
On payroll, employers operate Ireland’s PAYE system, meaning deductions are calculated and withheld at source and reported to Revenue on or before pay day.
Ending employment in Ireland
Unfair dismissal and fair procedures
In Ireland, an employee will usually need 12 months’ continuous service to bring an unfair dismissal claim, but there are important exceptions (for example, where dismissal is linked to protected grounds or protected disclosures).
As a general rule, termination risk is reduced when you can show:
a fair reason for the dismissal, and
a fair process (including documentation and an opportunity to respond).
Statutory notice periods in Ireland
If the contract provides longer notice, that applies. If not, Ireland has statutory minimum notice periods based on length of service.
Minimum notice an employer must give:
13 weeks to 2 years: 1 week
2 to 5 years: 2 weeks
5 to 10 years: 4 weeks
10 to 15 years: 6 weeks
15+ years: 8 weeks
Redundancy and statutory redundancy pay
Where a role is genuinely redundant and eligibility conditions are met, statutory redundancy is typically:
2 weeks’ gross pay per year of service, plus
1 additional bonus week
subject to a weekly pay ceiling of €600.
This statutory redundancy lump sum is generally tax-free.
Payroll and employment taxes in Ireland
Income tax bands for employees (2026)
| Gross Annual Income | Tax Rate % |
|---|---|
| Up to EUR 44,000 | 20% |
| EUR 44,000+ | 40% |
USC standard rates for 2026 are banded, with rates starting at 0.5% and rising to 8% at higher income levels (with specific thresholds published by Revenue).
Typical employer costs in Ireland
From 1 January 2026, Ireland introduced MyFutureFund, a national automatic enrolment retirement savings system for eligible employees. If an employee meets the age and earnings criteria and is not already in a workplace pension, contributions are deducted through payroll, matched by the employer, with an additional State top-up.
Separately, if an employer does not offer an occupational pension scheme (or an employee is considered excluded), the employer must provide access to at least one Standard PRSA and facilitate payroll deductions where requested.
Because total employer cost depends on salary level, benefits, and pension approach, most sites position this as “case dependent” rather than a single fixed percentage.
Minimum wage: from 1 January 2026, Ireland’s national minimum wage is €14.15 per hour (with age-based sub-minimum rates).
Are you looking for a fully-managed payroll and service? Take a look at how we can help with our dedicated EOR services in Ireland.
PAYE, PRSI, and USC
Ireland’s PAYE system is used to calculate and deduct:
Income Tax
PRSI (social insurance)
USC (Universal Social Charge)
with reporting to Revenue on or before the pay date.
Statutory leave and time off when employing in Ireland
Annual leave and public holidays
Most employees are entitled to up to 4 working weeks of paid annual leave, depending on hours worked.
Ireland has 10 public holidays.
In Ireland, employees (including casual workers) are entitled to 26 weeks’ maternity leave, regardless of length of service or hours worked. There is also an entitlement to 16 weeks of additional unpaid maternity leave.
There are timing rules around the leave. At least 2 weeks must be taken before the end of the week of the baby’s expected birth, and at least 4 weeks must be taken after the birth.
How maternity leave is paid
Maternity leave itself is a statutory right to time off. Pay is typically supported through Maternity Benefit (subject to eligibility and PRSI contributions), rather than a requirement for the employer to continue salary. Many employers choose to top up pay contractually, but it should be handled consistently and documented clearly.
Practical employer notes
The employment relationship continues during maternity leave, so you still need a clean process for payroll status, record keeping, and return-to-work planning.
Your contract and policies should clearly cover how benefits are treated during leave (for example private medical insurance, where offered).
When employing in Ireland through an EOR partner, this is typically managed through a standard maternity workflow.
Ireland provides statutory paternity leave under the Paternity Leave and Benefit Act 2016. A relevant parent is entitled to 2 continuous weeks’ paternity leave, with payment set by the Department of Social Protection where the individual has the appropriate PRSI contributions.
Paternity leave is available to relevant parents, including same-sex couples and adoptive parents, and the WRC guidance also notes how entitlement can apply in specific circumstances such as adoption and stillbirth.
How paternity leave is paid
Paternity leave is generally supported by a state benefit (subject to PRSI eligibility), and employers may choose to top up pay. If you do top up, it should be reflected in the contract or policy and processed consistently through payroll.
Parent’s leave in Ireland is a separate entitlement from parental leave. Each relevant parent has an entitlement to 9 weeks of parent’s leave, to be taken within the first 2 years of the child’s life (or within 2 years of adoption placement).
Employees can typically take parent’s leave in blocks (for example, week by week or as a longer block), and the leave must be applied for separately from other family-related leaves.
Notice requirements
The employee must request parent’s leave in writing at least 6 weeks in advance, setting out the start date, how the leave will be taken, and the duration.
Can an employer refuse it?
An employer cannot refuse parent’s leave, but they can postpone it in limited circumstances where it would have a substantial adverse effect on the business, and strict timing rules apply for postponement notices.
Ireland has a statutory sick pay scheme under the Sick Leave Act 2022. As of the WRC’s latest published guidance, the entitlement is:
2023: 3 days
2024: 5 days
2025 and 2026: remains at 5 days
Statutory sick pay is paid at 70% of an employee’s usual daily earnings, capped at €110 per day, and it applies to certified sick leave only.
Eligibility and conditions
Employees must have 13 weeks’ continuous service before they can access statutory sick leave.
A medical certificate is required, confirming the employee is unfit for work.
Employers must keep records of statutory sick leave taken and retain them for 4 years.
Ireland Employment Benefits
My Future Fund auto-enrolment (Ireland)
From 1 January 2026, Ireland introduced a national automatic enrolment retirement savings system called My Future Fund (MyFutureFund) for eligible employees.
This matters for international employers because pension expectations in Ireland often come up in offer negotiations, and auto-enrolment introduces an additional compliance and administration layer that a strong a strong EOR provider should manage cleanly.
Healthcare in Ireland
Healthcare in Ireland is delivered through the public health system managed by the Health Service Executive (HSE). People living in Ireland can access public healthcare services, although eligibility, waiting times, and out-of-pocket charges can vary depending on the service and the person’s circumstances.
Alongside the public system, many employees in Ireland also use private healthcare, typically accessed through private health insurance. For employers hiring internationally, offering private cover can be a practical way to improve access to consultants, diagnostics, and elective procedures, particularly where public waiting times may impact availability.
As part of our Employer of Record Ireland offering, we can support private health insurance set-up for your Ireland-based hires. We use Vhi as our private healthcare provider, one of Ireland’s leading health insurers, with a broad range of plans that employers commonly use as part of a competitive benefits package.
Where an employer pays for an employee’s medical insurance, it is typically treated as a taxable benefit through payroll, and Revenue guidance applies on how it is handled. Your EOR partner should manage the payroll reporting correctly and keep the process clear for both employer and employee.
Contact us today if you are thinking about employing in Ireland and we would be happy to help.
Data protection and confidentiality
GDPR and Irish data protection expectations
When employing in Ireland, you are handling employee personal data and must align with GDPR requirements and Irish data protection expectations (including privacy notices and appropriate handling of HR records). A practical approach is:
clear privacy information for employees
role-based access to HR data
documented retention and deletion practices
Confidentially
Where employees have access to business-sensitive information, it’s sensible to include clear confidentiality obligations and security expectations in the employment documentation, and to keep policies aligned with privacy rules.
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