As of March 2024, the estimated population of Ireland is 5 million.
The currency in Ireland is the Euro (EUR). The currency symbol is €.
Contracts made for an indefinite duration are considered permanent. Contracts that are not made for fixed term are indefinite-term contracts. Such contracts continue until the employer or employee ends them. Employees are entitled to annual leave, maternity leave, remuneration, and protection from unfair dismissal. The Terms of Employment (Information) Act requires an employer to issue a written statement of core terms within 5 days of the employee starting work and a comprehensive written statement of all terms and conditions within 1 month of the start date.
In Ireland, employment contracts may be written or oral. However, the Terms of Employment (Information) Act states that an employer must issue a core statement of employment terms within 5 days of an employee starting work and a full written statement of all terms and conditions within 1 month of commencement. The statement must include the employment start date, payment details, hours of work, place of work, leave terms, etc. Employers must sign and date the written statement, but employees are not legally required to sign it. Employers must keep a copy of the written statement throughout the employment and for at least a year after it ends. Employers can include certain clauses in employment agreements that limit the employee's ability to work in a certain sector or with certain suppliers or clients for a certain length of time. Irish courts have maintained that such covenants are enforceable if they are reasonable.
The law in Ireland defines an "agency worker" as "an individual employed by an employment agency under a contract of employment by virtue of which the individual may be assigned to work for, and under the direction and supervision of, a person other than the employment agency." The Terms of Employment Act states that all temporary agency workers must be treated equally with workers hired directly regarding their working time, pay rate, night work, rest breaks, overtime pay, annual leave, and public holidays. "Zero-hour" contracts are generally banned, but employees may conclude them in exceptional cases for casual work, work done in emergency situations, and short-term relief to cover routine absences. Such contracts apply where the employee is available for work, but their work hours are not specified under the employment contract. A zero-hours contract requires employees to be available for certain hours per week when required or both.
In Ireland, an employment contract may include a probationary period of up to 6 months. Employment agreements that include a probationary period must be in writing. During probation, employees may be dismissed for performance or suitability reasons, but they are still entitled to statutory minimum notice, unless dismissed for gross misconduct. The Unfair Dismissals Act does not apply until an employee has 12 months of continuous service. Probationary employees are entitled to the same basic statutory rights as other employees, including holiday entitlements, public holidays, payslips, and protection from discrimination.
The maximum average number of hours an employee can work per week is 48. The workweek average is typically determined over a 4-month period. Exceptions exist for seasonal workers, work that involves predictable surge activity, and employees under collective agreements. Further, employees are entitled to a rest period of up to 11 consecutive hours for every 24 hours of work. For night workers generally, the maximum night working time is 48 hours per week, averaged over a 2-month period or a longer period specified in a collective agreement which must be approved by the Labour Court. All employees have the "Right to Disconnect" from work. The Right to Disconnect gives employees the right to switch off from work outside of normal working hours, including the right not to respond immediately to emails, telephone calls, or other messages.
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In Ireland, all employees, whether full-time, part-time, temporary, or casual, earn annual leave entitlements from when they start work. Most employees are entitled to four weeks of paid annual leave per year, although they may be entitled to less depending on time worked. The employer determines the timing of an employee’s annual leave, considering work and personnel requirements, and should consult the employee or the relevant union in advance. Annual leave pay must be paid in advance at the employee’s normal weekly rate. Annual leave should normally be taken within the leave year or, with consent, within 6 months after it. In case of long-term sickness, annual leave can be postponed for up to 15 months after the end of the year it was earned. Employers may, by agreement, allow carryover of extra (non-statutory) leave. Employees continue to earn annual leave while on certified sick leave. If illness prevents them from taking it, the unused leave can be carried forward for up to 15 months after the leave year ends.
Before 2023, employees in Ireland had no statutory right to paid sick leave. The Sick Leave Act 2022, enacted in July 2022, introduced an entitlement to paid sick leave. Since January 1, 2024, employees are entitled to 5 days of statutory paid sick leave per year. They will also be entitled to a rate of payment for statutory sick leave of 70% of normal wages to be paid by employers (up to a maximum of EUR 110 per day). Under the new scheme, employees must have worked for their employer for at least 13 weeks to be entitled to paid sick leave. They must also be certified by a GP as unfit to work. Employers are required to include their sick pay policy in employment contracts. Separately, if employees cannot work because they are sick or injured and they have made enough social insurance contributions, they can apply to the Department of Social Protection (DSP) for a weekly illness benefit.
In Ireland, employees are entitled to maternity benefits. The government pays maternity benefits for 26 weeks (156 days). At least 2 weeks and not more than 16 weeks of leave must be taken before the end of the week in which the baby is due. Employees have the right to an additional 16 weeks of unpaid maternity leave immediately after the end of the 26 weeks’ paid leave. These rights apply to birth mothers. Employees may delay maternity leave for 5 to 52 weeks if they are suffering from a serious illness. The request must be in writing, be at least 2 weeks before the delay is set to begin, and include the start and end dates, and a medical certificate provided by a specialist doctor. The end date must be at least 5 weeks from the start of the postponement. Adoptive parents, whether adopting alone or as a couple (with only 1 parent qualifying), are entitled to 24 weeks of adoptive leave starting from the date the child is placed in their care, plus up to 16 additional weeks of unpaid leave. The Irish Maternity Benefit is EUR 299 (Euros) per week. Employers are not statutorily obligated to pay women who are on maternity leave. However, some employers may increase the amount employees get from Maternity Benefit to match the employee’s normal pay. Employees must have at least 39 weeks of PRSI contributions paid in the 12-month period before the first day of their maternity leave to be eligible for benefits. If employees have dependents, their maternity benefit is compared to the rate of illness benefit they would have received for absence due to illness, and they are paid the lower amount.
Relevant parents are provided with 2 weeks of paid paternity leave. The paternity benefit is EUR 299 (Euros) weekly for 2 weeks since January 1, 2026. The leave applies to birth or adoptive parents and must start within 26 weeks of birth or placement in adoption. Employees must apply to their employer in writing at least 4 weeks before taking paternity leave. Self-employed persons must apply 12 weeks before. Employees must have 39 weeks' contributions to be eligible for benefits. The leave is available to all fathers, including self-employed, same-sex couples, and adoptive parents.
In Ireland, persons continually employed for at least 13 weeks must give their employer 1 week's notice to terminate employment. Employment contracts may specify a longer notice period. Employers must give continuously serving employees a notice between 1 and 8 weeks, depending on the duration of their service. If the employee is not required to work for any part of their notice, the employer must pay them for that period. No notice is required if either party terminates an employment contract due to misconduct. Employees and employers can also agree to waive their right to notice.
Ireland does not have general severance pay for all terminations. However, where an employee is made redundant and meets the eligibility criteria under the Redundancy Payments Acts, the employer is legally required to pay statutory redundancy pay. Employees aged 16 or over with 104 weeks (2 years) of continuous service at a job are entitled to a statutory redundancy payment, a lump-sum amount based on the employee's salary. All eligible employees are entitled to: If over age 16, 2 weeks' pay for every year of service, and 1 additional week's pay, also known as a bonus week The payment amount is subject to a maximum earnings limit of EUR 600 per week.
In Ireland, there is no single fixed retirement age. A person’s retirement age is designated in their contract of employment. Some employment contracts have a mandatory retirement age, but they also provide for earlier retirement generally and/or on grounds of illness. The common retirement age in contracts of employment is 66. Many provide for early retirement starting at age 60 or, in some cases, starting at age 55. Under the Employment (Contractual Retirement Ages) Act 2025, an employee who does not wish to retire at a contractual retirement age that is below the pensionable age must notify their employer in writing within a specified timeframe (generally between 3 months and 1 year before reaching that age, subject to contractual notice periods). The employee may submit such a request up to twice within a 6-month period. Once notified, the employer cannot enforce retirement without first providing a reasoned written response within 1 month. It doesn't apply to an employee whose employment is subject to a maximum retirement age required by law, at which the employee is obliged to retire or be retired from an employer. An employer shall not penalize or threaten penalization of an employee for proposing to exercise, or having exercised this right. In Ireland, there are 2 main types of State pensions: the State Pension (Contributory) and the State Pension (Non-Contributory). The State Pension (Contributory) is a social insurance-based payment for people aged 66 and over who have made enough PRSI contributions. It is not means-tested, and individuals may choose to defer claiming it up to age 70 to receive a higher payment. The rate depends on the number of PRSI contributions under the Total Contributions Approach (TCA) and on whether the person has qualified dependents. The State Pension (Non-Contributory) is a means-tested payment for those aged 66 or older who do not qualify for the contributory pension or have insufficient contributions. The amount paid depends on the outcome of a means test assessing income and assets. A new auto-enrollment retirement savings scheme (known as My Future Fund) has been in effect since January 1, 2026. Employees aged 23 to 60 years who earn EUR 20,000 or more annually and do not already participate in a pension scheme are automatically enrolled. Employers and employees are both required to contribute. Both employees and employers contribute 1.5% of the employee’s gross earnings, while the State will add a top-up equivalent to one-third of the employee’s contribution. Contributions apply to annual earnings up to EUR 80,000. Rates will increase by 1.5 percentage points every 3 years, reaching 6% each for employers and employees, and a 2% State top-up after 10 years of operation.
In Ireland, survivors of a deceased person are entitled to the following types of benefits, depending on their insurance condition: Bereaved Partner's (Contributory) Pension - Benefits depend on the number of contributions made Bereaved Partner's (Non-Contributory) Pension - Means test benefits based on cash income, the value of capital, and income from property personally used Guardian and Orphan Payments - Benefits for children under 18 or 22 years of age whose parents have died Death Benefit due to occupational injury - If a person dies in a work-related accident or disease, their surviving spouse/partner or dependent child can be eligible for Death Benefit Eligible beneficiaries for bereaved partners' pensions include the spouse, civil partner, or cohabitant of the deceased. In case of a cohabitant, they must be cohabiting for at least 5 years (or 2 years if they have dependent children together).
In Ireland, the State provides benefits for insured persons who have been injured or incapacitated by an accident, whether in the workplace or while traveling directly to or from work. The Occupational Injuries Scheme also covers employees who have contracted a work-related disease. The following benefits are available under this scheme: Injury Benefit Disablement Benefit Incapacity Supplement Constant Attendance Allowance Medical Care Scheme Disability Allowance (DA) is a weekly allowance paid to people with a disability. Recipients can work and still receive the allowance. They can earn up to EUR 165 per week (after deductions for PRSI, pension, and union dues) without affecting their disability allowance payment. For earnings between EUR 165 and EUR 375, half is disregarded, and any income over EUR 375 is fully assessed when calculating the amount of Disability Allowance. From January 1, 2026, employees who work while getting Disability Allowance are eligible for the Back to Work Family Dividend (BTWFD). It gives financial support to people with children who stop claiming a jobseeker's payment or a One-Parent Family Payment because they are in work or start work. Work includes employment or self-employment. It is paid for up to 2 years. The amount of BTWFD is EUR 58 for a child aged under 12 and EUR 39 for a child aged 12 and above.
The amount of tax that an individual pays varies based on income and civil status. Residents are taxed on income from sources within or outside of Ireland, while non-residents are taxed on domestic income. The tax assessment year for income runs from January 1 through December 31. The first part of a person’s income, up to a certain amount based on the person’s civil status (single, widowed, married, civil partner, parent, etc.), is taxed at 20%. It is known as the standard rate of tax. The amount it applies to is the standard rate tax band. The remainder of that person’s income is taxed at 40%. A Universal Social Charge (USC) is applied to gross income more than EUR 13,000 per year. It is to be paid on all income, calculated on a weekly or monthly basis. If the income is less than EUR 13,000 per year, no USC is applied. For married couples or civil partners, each spouse or civil partner is treated individually by their employer or pension provider throughout the year. Statutory redundancy payments are exempt from the charge. Rates of USC range from 0.5% to 8% for employees.
In Ireland, visas are grouped into 4 broad categories:
Holders of a valid Irish Residence Permit (IRP) no longer need a re-entry visa to return to Ireland after traveling abroad. Children under 16 do not receive an IRP but may re-enter without a re-entry visa if traveling with a parent or guardian who holds one.
Multiple and single-entry visas are also issued.
In Ireland, foreign nationals who wish to work must comply with the country’s visa and employment-permit requirements, unless exempt. Exemptions apply to: Citizens of the European Union (EU), the European Economic Area (EEA) (which includes Iceland, Liechtenstein, and Norway), and Switzerland UK citizens under the Common Travel Area Individuals with certain legal statuses in Ireland Under the Employment Permits (Amendment) Act of 2024, there are 9 types of employment permits: General Employment Permit Critical Skills Employment Permit Reactivation Employment Permit Dependent/Partner/Spouse Employment Permit Contract for Services Employment Permit Intra-Company Transfer Employment Permit Internship Employment Permit Sport and Cultural Employment Permit Exchange Agreement Employment Permit For short-term employment lasting less than 90 days, employees must apply for Atypical Working Scheme.
Expanding into Ireland is a great opportunity for companies thanks to the stable economy, highly educated population, and pro-business policies. Nevertheless, hiring staff in Ireland is not without challenges, such as adhering to Irish labor laws, taxation, and cultural differences.
At Engage Anywhere, we make your expansion easy with our Employer of Record (EOR) services in Ireland, enabling you to employ staff without having a physical presence. We manage compliance, payroll, tax, and administration so that you can concentrate on business growth while we deal with the intricacies of employment. Whether you’re looking for EOR Ireland solutions or complete payroll outsourcing in Ireland, we’ve got you covered.
Ireland is a business growth hub strategically, with a dynamic economy and a good investment environment. Nevertheless, employing workers in Ireland entails dealing with legal, administrative, and cultural complexities. Our guide provides you with all you need to know for a smooth hiring process.
Irish labor laws demand strict compliance rules, equitable taxation, and employment protection. Engage Anywhere, you can confidently enter the Irish market while we handle the intricate employment landscape for you.
Expanding into Ireland through our EOR Ireland services ensures a smooth, compliant, and cost-effective hiring process. Here’s how we support your business:
Employing staff in Ireland requires compliance with labor laws, taxation, and social security obligations. Engage Anywhere ensures your business remains compliant in all key areas through our comprehensive Ireland Employer of Record services.
Employment contracts in Ireland must be legally compliant and include:
Onboarding also includes workplace training and company culture integration for new hires.
Employers in Ireland must register with the Revenue Commissioners for tax and social security contributions. Key tax components include:
Our payroll services in Ireland ensure full compliance with taxation laws, handling all filings and deductions on your behalf.
Irish employment compliance involves labor laws, workplace safety, and non-discrimination policies. Engage Anywhere keeps your business compliant through regular audits and adherence to evolving regulations.
Companies hiring foreign workers in Ireland must understand work permit requirements, including:
Processing payroll in Ireland includes:
With Engage Anywhere, payroll outsourcing in Ireland becomes seamless, accurate, and compliant.
Irish labor laws protect workers through regulations on:
Salaries vary by industry and experience level. Employers should:
Employees in Ireland are entitled to:
We ensure your company follows Irish leave policies while offering competitive benefits.
Many employers conduct background checks before hiring. These include:
Our EOR service providers in Ireland facilitate complete employee screening and onboarding efficiently.
Employee termination must comply with Irish employment laws. Key considerations include:
Successfully managing an Irish workforce requires an understanding of:
To attract top talent in Ireland, businesses should offer:
Employing workers in Ireland is a strategic expansion step for business development, yet employment laws, payroll compliance, and taxation pose challenges. With Engage Anywhere, it is made easier through our EOR Ireland solutions, offering a seamless market entry experience.
We do all the work for you regarding employment tasks, i.e. payroll processing, tax payments, and HR administration, while you concentrate on business expansion.
Ready to grow in Ireland? Let Engage Anywhere assist you in building your team smoothly and compliantly through expert EOR service providers in Ireland.
An EOR is a service provider that manages employment responsibilities such as payroll, compliance, and benefits administration on behalf of companies.
No, with Engage Anywhere, you can hire employees in Ireland without setting up a local entity.
Employers must comply with PAYE, USC, and PRSI contributions under Irish tax laws.
Yes, we help with work permits, visa applications, and compliance for hiring international employees in Ireland.
Ready to grow into Ireland? Have Engage Anywhere assist you in building your team smoothly and compliantly.
