Guide to employment, payroll and benefits in

Ireland

Rivermate offers complete payroll, benefits and compliance services for

Ireland

01. Overview

Last updated: 

August 19, 2021

Currency
Euro
Capital
Dublin
Ease of doing business
79.6
Language
Irish
Population
4937786
GDP growth
7.80%

02. Grow your team in

Ireland

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Ireland

, particularly if you don't have established local relationships. You can hire employees in

Ireland

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

The island of Ireland is located in the North Atlantic Ocean. The North Channel, the Irish Sea, and St George's Channel distinguish it from Great Britain to the east. Ireland is the second-largest island in the British Isles, the third-largest in Europe, and the twentieth-largest on Earth. Ireland is divided geographically into two parts: the Republic of Ireland, which occupies five-sixths of the island, and Northern Ireland, which is part of the United Kingdom. Ireland had a population of around 6.6 million people in 2011, making it Europe's second-most populated island after the United Kingdom. The Republic of Ireland has a population of 4.8 million people, while Northern Ireland has a population of 1.8 million. Ireland's geography consists of relatively low-lying mountains surrounding a central plain, with many navigable rivers extending inland. Its lush foliage is a product of the mild but changeable climate that is free of temperature extremes. Until the end of the Middle Ages, most of Ireland was covered in forest. Today, forest covers about 10% of the island, compared to a European average of over 33%, with non-native conifer plantations accounting for the majority of it. Ireland is home to twenty-six extant land mammal species. The climate in Ireland is moderated by the Atlantic Ocean, and winters are milder than one would expect for such a northerly place, though summers are cooler than those in continental Europe. There is a lot of rain and cloud cover. 33,000 years ago, the first signs of human activity in Ireland was discovered. By the first century AD, Gaelic Ireland had arisen. From the 5th century onwards, the island became Christianized. Following the Anglo-Norman invasion in the 12th century, England assumed sovereignty. However, English rule did not apply to the entire island until the Tudor invasion in the 16th–17th centuries, which resulted in colonization by British settlers. The Protestant English rule system, which began in the 1690s and was expanded in the 18th century, was organized to materially disadvantage the Catholic majority and Protestant dissenters. Ireland became a member of the United Kingdom in 1801, after the Acts of Union were passed. Following a war of independence in the early twentieth century, the island was partitioned, resulting in the creation of the Irish Free State, which became increasingly independent over the decades, and Northern Ireland, which remained part of the United Kingdom. From the late 1960s to the 1990s, civil strife erupted often in Northern Ireland. Following a constitutional compromise in 1998, this subsided. In 1973, the Republic of Ireland, along with the United Kingdom and Northern Ireland, became members of the European Economic Community. Irish culture, especially in the field of literature, has had a profound impact on other cultures. A strong indigenous culture exists alongside modern Western culture, as evidenced by Gaelic sports, Irish music, Irish language, and Irish dance.

04. Public holidays

05. Types of leave

Paid time off

Full-time workers are entitled to four weeks of paid unpaid holiday, but further leave can be granted if the employee's contract allows it. The boss, on the other hand, has the authority to determine when annual leave is taken. Paid leave can only be carried over if both the boss and the employee consent.

Public holidays

Ireland recognizes 9 public holidays.

Sick days

There is no federal requirement requiring workers to include paid sick leave to their workers, so employers can establish their own sick leave policies and include it in the employee's contract or condition of employment. Employers to give a written explanation to an employee within two months of hiring that explains the terms and conditions of being unable to work due to illness or accident.When an individual becomes ill when on annual leave, they will get a medical card and get the sick days deducted from their annual leave days.

Maternity leave

Mothers are entitled to 26 weeks (156 days) of paid maternity leave, with a further 16 weeks of unpaid leave that starts shortly after maternity leave ends. Mothers must wait at least 2 weeks before and 4 weeks after the scheduled birth. Employers are not required to pay for paid holidays, because that is dependent on whether the employee has invested enough to qualify for unemployment security.Employees must make the following contributions in order to obtain benefits:In the 12-month period before the start of your maternity leave, you would have paid at least 39 weeks of PRSI.orAt least 39 weeks of PRSI charged or attributed in the relevant tax year or the tax year directly following the applicable tax year after first beginning job.orAt least 26 weeks of PRSI is paid in the relevant tax year, as well as at least 26 weeks in the tax year preceding the relevant tax year.The regular weekly rate is 245.00 EUR.

Paternity leave

Within 26 weeks of the birth or adoption, 2 weeks of paid leave is granted.The following people are entitled for paternity leave:The child's biological parentThe mother of the child's spouse, legal partner, or cohabitantA donor-conceived child's momTo be eligible for benefits, an individual may have paid into the social security system:At least 39 weeks of PRSI have been paid or credited after first beginning employment, and at least 39 weeks of PRSI have been paid or credited in the relevant tax year or the tax year directly after the relevant tax year.or At least 26 weeks of PRSI is paid in the relevant tax year, as well as at least 26 weeks in the tax year directly preceding the relevant tax year.

Parental leave

Within the first two years of the birth or adoption of the infant, parents of newborns and adoptive children are entitled to five weeks of paid leave.Parents with children under the age of 12 have the right to 26 weeks of unpaid leave.

Other leave

06. Employment termination

Termination process

If an employee has been hired for at least 13 weeks, the employer must provide the statutory minimum of one week's notice of termination, unless the signed contract states otherwise. If an employee believes their dismissal was unjust, they have the right to request a written explanation explaining their dismissal. Within 14 days of receiving the request, the statement shall be supplied.


When an employee's work ends, he or she is entitled to receive any unpaid wages and a pay slip.

Notice period

Both the employee and the employer should give the following notice. There will be a one-week notice period if the employment is for 13 weeks to two years. The notice period is two weeks if the employment length is between two and five years. The notice period is four weeks if the job is for five to 10 years. The notice period is six weeks if the job is for ten to fifteen years. The notice period is eight weeks if the employee has been with the company for more than 15 years. Payment in lieu of notice is possible.

Severance pay

Employees have the right to receive wages owed to them for completed work if they are dismissed. Additionally, they are to be compensated for annual leave earned but not taken. Employers are not required to pay severance to terminated employees. Employees who are laid off are entitled to two weeks' pay plus an additional bonus week. Pay for redundancy is limited to a maximum of 600 dollars per week. A worker who has worked for five years in a row is entitled to 11 weeks of redundancy pay.

Probation period

Probationary periods typically last between six and twelve months.

07. Working hours

General

In Ireland, the standard workweek is 39 hours and cannot exceed an average of 48 hours. Annual leave, sick leave, maternity, adoptive, or parental leave are not included in the average number of hours worked.


Night workers who work three hours or more between midnight and 7 a.m. and who work at least half of their working hours between midnight and 7 a.m. throughout the year should not work more than eight hours in a 24-hour period.

Overtime

While Ireland does not have statutory overtime pay, it is occasionally specified in collective bargaining agreements or negotiated in employment contracts.

08. Minimum wage

General

The hourly minimum wage in Ireland is based on age. For employees with age 18, the minimum wage is 8.16 EUR per hour. For employees with age 19, minimum wage is set at 9.18 EUR per hour. For employees 20 years and older, the minimum wage is set at 10.20 EUR per hour.

09. Employee benefits

General

All residents of Ireland have the right to health care provided by the public health care system (Health Service Executive), which is funded by general taxation.

There is a large private healthcare system in addition to the public health care system. Wait lists for those who do not have private insurance can be extremely long, often lasting years. As a result, the majority of employees will request private health insurance.

Private health insurance is taxable and should be factored into an employee's net take-home pay calculation.

In Ireland, benefits-in-kind received from an employer, such as private use of a company car, free or subsidized housing, and preferential loans, are taxable if the employee earns more than €1,905 per tax year. If the employee receiving such benefits is a director of the company, the benefits are taxable regardless of the employee's annual earnings.

Executives working for US technology companies in Ireland frequently request stock options. The implementation of a share incentive scheme benefits both the employer and the employee. The complexities of issuing options to employees in Ireland are complex and taxed so most US companies prefer to offer cash bonuses tied to profitability rather than stock options.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Ireland

to hire a team takes time, money, and effort. The labor law in

Ireland

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Ireland

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Ireland

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Ireland

via our Employer of Record / PEO solution.

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