Hiring in Ireland - How To Hire Irish Employee

What should I know about hiring in Ireland?

Ireland is home to a skilled and well-educated workforce, and companies may benefit from hiring locally to tap into this talent pool.

If you are considering hiring employees in Ireland, it’s important to be aware of the country’s labor laws. Some of the key areas to consider include minimum wage rates, working hours, annual leave entitlements, and the process for terminating employment.

Irish law requires that employment contracts include written details of the job responsibilities, compensation, and duration of employment. Employers should ensure that they review and understand these contracts before signing them.

Why is Ireland a good choice for finding remote employees?

Ireland is an excellent location for finding remote employees due to its skilled workforce, English language proficiency, favorable business environment, convenient time zone, and access to technology.

With a strong emphasis on STEM education, Ireland boasts a large pool of talent with the necessary technical skills for remote work. English is the primary language spoken in Ireland, making communication with remote employees easy for English-speaking companies. Ireland’s time zone is also convenient for businesses in Europe or the US that need to collaborate with their remote teams during regular business hours.

The country’s low corporate tax rate and government incentives make it an attractive location for foreign companies.

Finally, Ireland’s status as a hub for technology companies means that remote employees in the country are likely to have access to the latest technology and tools needed to perform their jobs effectively.

How can Native Teams help you hire in Ireland

Recruiting remote workers in Ireland requires either an Irish legal entity or the assistance of a worldwide recruitment solutions company.

Our employer of record services can help you hire new employees, disburse wages and other benefits, and maintain regulatory compliance with Irish employment laws. By using our services, you can ensure that your benefits and pay packages are more attractive to potential employees, which can help you to attract top talent in Ireland.

Hire your first Irish employee with Native Teams.

Legal requirements for hiring in Ireland

Minimum wage

As of January 1, 2023, the minimum wage in Ireland remains fixed at EUR 1,909.7 per month. That is 22,916 EUR per year, taking into account 12 payments per year.

Contributions & taxes

Employer tax

The employer tax in Ireland is commonly referred to as Pay Related Social Insurance (PRSI). PRSI is a form of social insurance paid by both employers and employees, which funds social welfare benefits such as healthcare, pensions, and unemployment benefits. The rate of PRSI paid by employers depends on the employee’s earnings and is currently calculated at a rate of 8.6% of the employee’s gross pay.

Corporate tax

The corporate tax rate in Ireland is 12.5%. This rate applies to active business income earned by companies that are resident in Ireland for tax purposes. It is one of the lowest corporate tax rates in the European Union and has made Ireland an attractive location for foreign investment.

Income tax

In Ireland, employees are subject to income tax, which is deducted directly from their pay by their employer through the Pay As You Earn (PAYE) system. The rate of income tax that employees pay depends on their income level, with different tax bands and rates applying. For the tax year 2022, the standard tax rate for employees was 20% on income up to €35,300 and 40% on income above that amount.

To calculate the salary and taxes in Ireland please click here.

Payroll cycle

Most Irish employers pay their employees on a monthly basis.

Is there a 13th salary in Ireland?

There is no standard practice of companies providing a 13th salary for employees.

Labor rules

Probation period rules

The length of probation is specified in the employment contract and varies with the nature of the position, usually lasting between three and six months.

Notice period

The notice period (which works both ways) can vary depending on the terms of the employment contract and the length of service of the employee, but typically works like this:

An employee who has been employed for less than 13 weeks is not entitled to any minimum notice period.
After 13 weeks, an employee is entitled to a minimum notice period of one week.
After 2 years, an employee is entitled to a minimum notice of two weeks.

Severance pay

Under Irish law, an employee who has been employed for at least two years is entitled to a minimum redundancy payment of two weeks’ pay for every year of service, plus an additional week’s pay.

For employees under the age of 41, the maximum number of years of service that can be taken into account for calculating the redundancy payment is 20 years. For employees over the age of 41, the maximum number of years of service that can be taken into account is increased by one year for every year of service over the age of 41, up to a maximum of 40 years.

Working hours

The standard working hours in Ireland are 8 hours per day and 40 hours per week. However, the actual working hours can vary depending on the employer and the industry.

Leave and benefits

Public holidays

In Ireland, employees are entitled to nine public holidays a year, for which they are given a day off. These public holidays are:

New Year’s Day (January 1st)
St. Patrick’s Day (March 17th)
Easter Monday (the Monday after Easter Sunday)
May Day (the first Monday in May)
June Bank Holiday (the first Monday in June)
August Bank Holiday (the first Monday in August)
October Bank Holiday (the last Monday in October)
Christmas Day (December 25th)
St. Stephen’s Day (December 26th)

Sick leave

Employees are entitled to take sick leave when they are ill or injured and unable to work. The specific entitlements for sick leave can vary depending on the terms of the employment contract, industry-specific agreements, and length of service.

Maternity leave

Pregnant employees are entitled to take 26 weeks of maternity leave. This leave can start up to 16 weeks before the expected due date and must be taken in one continuous period. During maternity leave, employees are entitled to receive maternity benefits from the Department of Employment Affairs and Social Protection (DEASP), which is currently set at €245 per week.

In addition to maternity leave, mothers may also be entitled to take an additional 16 weeks of unpaid maternity leave.

Paternity leave

Fathers and partners of the mother are entitled to take two weeks of paternity leave within 26 weeks of the birth or adoption of a child. During paternity leave, employees are entitled to receive paternity benefits from the DEASP, which is currently set at €245 per week.

Other leave

Parental leave

Parental Leave is available to each parent for up to 26 weeks, to be taken before the child’s second birthday or within two years of the adoption.

Bereavement leave

There is no specific statutory entitlement to bereavement leave, but many employers do provide bereavement leave as part of their employment policies or collective agreements.

What are the minimum vacation days?

In Ireland, employees are entitled to a minimum of four weeks of paid annual leave per year, or a pro-rata amount if they work part-time.

Insurance

Health security & private insurance

In Ireland, the public healthcare system is funded by taxes and is known as the Health Service Executive (HSE). Everyone who is ordinarily resident in Ireland is entitled to access public healthcare services, including consultations with GPs, hospital care, and prescription medicines.

However, some people choose to take out private health insurance to access additional healthcare services or to avoid waiting lists for certain procedures.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Ireland, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Ireland?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

No paperwork: We will handle all the necessary paperwork for you.
Save on taxes: We help you handle your taxes.
No company set up: You can expand your business using our company entitles.
Online onboarding: We’re here to ensure your onboarding process is trouble-free.
No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
Increase your profit: We assist you in growing your business and maximizing your profits.
Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
Local support: We can assist you in understanding and complying with the relevant local laws.