Managing payroll across countries is usually straightforward once you understand the local reporting rules and the core deductions. Ireland’s system is predictable, but the deadlines matter. Payroll information must be reported to Revenue on, or before, the day the employee is paid, so you need a controlled payroll process rather than a last-minute calculation.
This guide explains how Irish payroll works in practice, including PAYE reporting, PRSI, USC, minimum wage, statutory sick pay, pensions, and payslips.
How payroll works in Ireland (PAYE Modernisation)
Ireland operates a real-time payroll reporting model under PAYE Modernisation. Each time you pay an employee, you submit payroll details to Revenue using a payroll submission, and it must be done on or before the pay date.
Revenue is clear that the employer remains responsible for compliance, even if payroll is outsourced to software providers or payroll bureaus.
What gets deducted from employee pay in Ireland (PAYE, PRSI, USC)
Irish payroll deductions usually include:
PAYE income tax
PRSI (employee social insurance)
USC (Universal Social Charge)
These are calculated through payroll and reported to Revenue as part of the real-time submission process.
Income tax bands in Ireland (2026)
Revenue publishes the income tax rates and bands each year. For 2026, Revenue’s charts show the standard rate band for a single person is €44,000 at 20%, with the balance taxed at 40% (with other bands depending on personal circumstances).
USC rates and thresholds (2026)
Revenue sets USC rate bands and thresholds. For 2026, the standard USC bands start at 0.5% and move through 2% and 3%, with 8% applying above the band thresholds.
PRSI basics
PRSI applies based on the employee’s PRSI class and earnings. It is part of the normal payroll deductions and is reported to Revenue through the same real-time process.
Employer costs in Ireland (employer PRSI)
Employer PRSI is one of the main predictable employer payroll costs in Ireland. Citizens Information sets out the Class A employer PRSI rates and the weekly earnings threshold.
From 1 January 2026, employers pay:
9% on weekly earnings up to €552
11.25% where weekly earnings are above €552
From 1 October 2026, the rates increase to 9.15% and 11.4% on the same threshold.
Minimum wage in Ireland (2026)
Ireland’s national minimum wage is updated regularly and includes age-based rates. From 1 January 2026, the adult rate (age 20+) is €14.15 per hour, with lower rates for employees under 20.
Rates from 1 January 2026 (Workplace Relations Commission):
Under 18: €9.91
Age 18: €11.32
Age 19: €12.74
Age 20+: €14.15
Some sectors can have different minimum rates through sectoral arrangements, so it is worth checking role-by-role if you hire into regulated sectors.
Statutory sick pay in Ireland
Ireland has a statutory sick pay scheme paid by the employer for eligible employees. The Workplace Relations Commission and Citizens Information describe the scheme as paid at 70% of normal pay, capped at €110 per day, subject to the scheme rules and certification requirements.
Pensions in Ireland (MyFutureFund auto-enrolment)
Ireland’s auto-enrolment pension scheme, MyFutureFund, applies to eligible employees from 1 January 2026. Citizens Information explains that employees who are not already paying into a pension may be automatically enrolled, depending on eligibility.
The scheme’s official site explains that contributions start at 1.5% of gross pay, with an employer match and a State top-up, and increase over time under the scheme design.
Payslips and payroll records
Irish employers must provide a wage statement (payslip) that shows the gross amount of wages and itemises each deduction. This obligation sits under the Payment of Wages Act 1991, and the Workplace Relations Commission summarises what must be shown on the statement.
How Employer of Record Ireland and EOR Ireland services support payroll
If you are hiring in Ireland without an Irish entity, Employer of Record Ireland and EOR Ireland services are often used to keep payroll reporting, deductions, payslips, and documentation consistent from the start. The value is usually operational: governed payroll cut-offs, reliable Revenue reporting on pay date, and clear handling of changes like bonuses, salary updates, and leave-related pay adjustments.
Daniel Masters
Director Finance and Operations