Payroll & Employment Guide Ireland

In Ireland, employers are legally required to provide employees with a written statement outlining the terms and conditions of employment within two months of starting. This document must include key details such as job title, pay, working hours, and other essential terms.

Employers can choose from various types of contracts depending on the nature of the role, including permanent, fixed-term, temporary, and casual contracts.

Notice periods: One week for employees; one to eight weeks for employers, depending on the employees’ length of service

Termination of employment: Grounds for termination of employment include redundancy, misconduct, or capability issues.

Employers in Ireland are required to provide mandatory employment benefits as outlined by national labour laws. To stay competitive, many also offer additional perks beyond the legal minimum. Understanding both is key to attracting and retaining top talent.

• Mandatory benefits: Pension scheme, social security benefits
• Common perks: private health insurance plans, gym memberships, mental health support
• Leave policies: Annual leave, maternity and paternity leave, sick leave, domestic violence leave, force majeure leave, jury service leave

In Ireland, employers are responsible for withholding income tax (PAYE), social insurance (PRSI), and the Universal Social Charge (USC) from employees’ wages.

Personal income tax rate: Income up to €44,000 — 20%; Income above €44,000 is taxed at the higher rate of 40%.

VAT: 23%

Tax allowances: Personal tax credits and reliefs such as the Single Person Credit and Married Couple Credit

Additional tax reliefs: Medical expenses and pension contributions.

In Ireland, employers are required to pay salaries according to the terms outlined in individual employment contracts or collective agreements. These salaries must not be less than the national minimum wage set by the government.

Salary payment deadline: No single statutory deadline

Taxes and contributions payments deadline: By the 23rd day of the following month if submitted online, or by the 14th if filed on paper.

Payroll declarations deadline: Same as taxes and contributions

Payroll currency: EUR

Employment law in Ireland is shaped by common law, statutes, and the Irish Constitution. The Constitution guarantees key rights, such as equality, freedom of association, and the right to earn a living. The Employment Equality Acts 1998–2015 further prohibit discrimination in areas such as hiring, promotion, and training based on factors like gender, age, race, and disability.

Total employment cost:

• Pay Related Social Insurance (PRSI) contributions: 8.8% to 11.05% depending on the employee’s earnings

Minimum wage: €13.50 per hour

Probation period: Up to six months

Using EOR services in Ireland lets you employ individuals legally without setting up a local entity. The EOR becomes the legal employer and takes care of:

• Legal employment and contracts
• Payroll processing
• Tax withholding
• Benefits administration
• Onboarding/offboarding employees

Using PEO services in Ireland offers HR and administrative support while you remain the legal employer. It’s ideal for businesses with a local entity that need help managing day-to-day workforce operations, including:

• HR support and workforce administration
• Payroll and benefits management
• Compliance and local labour law guidance
• Employment contracts assistance

Native Teams offers a payroll calculator tailored to Ireland’s labour laws. It helps you quickly estimate net and gross salaries, mandatory deductions, and both employer and employee contributions.