Hire and pay employees in
Ireland, hassle-free

Income tax in Ireland is leveraged according to progressive rates of 20% and 40% applied to variable income thresholds depending on the taxpayers' personal circumstances and marital status:

• Single, widowed, or surviving civil partners without qualifying children: 20% up to €42,000, plus 40% on the remaining annual income
• Single, widowed, or surviving civil partner, qualifying for Single Person Child Carer Credit: 20% up to €46,000, plus 40% on the remaining annual income
• Married or in a civil partnership, with only one spouse or civil partner with income: 20% up to €51,000, plus 40% on the remaining annual income
• Married or in a civil partnership, with spouses or civil partners with income: 20% up to the lower amount of either €84,000 or the sum of €51,000 + the income of the lower earner, plus 40% on the remaining annual income. 

Monthly tax withholdings are calculated by spreading the annual taxable income thresholds evenly throughout the year.

The employer cost is generally estimated at 11.05% of the employee salary.

• Social Security - 11.05%

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday. The maximum hours are 48 hours per week.

Overtime payment is not mandatory. Hours outside of standard work hours are considered overtime. 

The maximum average weekly working hours (including overtime) over a 4 month period cannot exceed 48 hours. 

There is no statutory overtime pay, and overtime compensation is based on the employment agreement. Employers can provide compensation financially or provide paid time off at a future date.

Pregnant employees who qualify for maternity leave are entitled to 26 weeks of paid leave.

The employee will receive a percentage of their salary based on employment history and amount of social insurance paid. The standard weekly benefit rate is EUR €274. The PRSI will be responsible for the pay.

The employee can extend leave for 16 additional weeks. This leave is unpaid.

To qualify for the statutory maternity benefit, an employee must meet one of the following conditions:

• Have at least 39 weeks PRSI paid in the 12 months before the first day of maternity leave
• Have at least 39 weeks PRSI paid since first starting work and at least 39 weeks PRSI paid or credited in the Relevant Tax Year or in the year following the Relevant Tax Year
• Have at least 26 weeks PRSI paid in the Relevant Tax Year and at least 26 weeks PRSI paid in the Tax Year prior to the Relevant Tax Year

Employees are entitled to 2 weeks of paid paternity leave. The employee will receive a percentage of their salary based on employment history and the amount of social insurance paid.

The standard weekly benefit rate is EUR €274. The Department of Social Protection will be responsible for this pay.

Each parent is entitled to 26 weeks’ unpaid parental leave, which must be taken before the child is 12 years of age, or 16 years if the child has a disability. 

The employee must have been working for their employer for at least 12 months to be entitled to parental leave.

Parents are also entitled to 9 weeks of paid parent’s leave to be used within the first 2 years after the birth of the child. The employee will receive a percentage of their salary based on employment history and the amount of social insurance paid. The standard weekly benefit rate is EUR €274. The Department of Social Protection will be responsible for this pay.

Employees in Ireland are entitled to 5 days of company-paid sick leave at 70% of their regular salary up to a maximum of €110/day. Employees must have worked for at least 13 weeks with their employer before they can get statutory sick pay. If the employee is off work sick for more than 5 days, and they have enough PRSI contributions, they can apply to the Department of Social Protection (DSP) for a payment called Illness Benefit.

The sick leave entitlement will increase in the coming years:

- 2024: 5 days
- 2025: 7 days
- 2026: 10 days

Sick leave is not prorated. Part time employees are entitled to the same allowance.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Termination in Ireland can be complex and must be based on performance or redundancy reasons (serious cause, unfit for the role, extinction of the role).

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal (Gross misconduct, fraud, repeated breach of rules)
  • Performance due to unsuitability for the job
  • Physically or mentally incapable of performing duties
  • Ceases to be eligible to work in Ireland
• By the expiration of the contract

The minimum notice period is 1 week and will be increased according to the length of the employment.

• Between 13 weeks to 2 years of employment - 1 week of notice
• Between 2 to 5 years of employment - 2 weeks of notice
• Between 5 to 10 years of employment - 4 weeks of notice
• Between 10 to 15 years of employment - 6 weeks of notice
• More than 15 years of employment - 8 weeks of notice

In Ireland, employers can make a payment in lieu of notice. 

The employer may terminate the employee without the employee working the notice period and instead pay the base salary which the employee would have been entitled to receive during the notice period (or if notice has already been given, during the remainder of the notice period).

Severance is only mandatory under law if the employee is being terminated for redundancy and has more than 2 years of employment.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Ireland celebrates 10 national holidays. National public holidays include:

1. New Year’s Day: January 1
2. St. Brigid's Day: February 6
3. Saint Patrick’s Day: March 17
4. Easter Monday
5. Early May Bank Holiday: First Monday in May
6. June Bank Holiday: First Monday in June
7. August Bank Holiday: First Monday in August
8. October Bank Holiday: Last Monday in October
9. Christmas Day: December 25
10. Saint Stephen’s Day: December 26

Contracts must be in English and can be translated to another language (employee's native language if required). They must be in writing and signed by both parties.

A contract must include:

• Name
• Address of employee
• Start date and finish date
• Place of work
• Salary (Rate of pay)
• Working hours
• Annual holiday entitlement
• Method of payment
• Sick Leave
• Notice Period
• Overtime rates (if any)
• Bonus (if any)
• Other general contractual obligations (disciplinary procedures, harassment policies, smoking / vaping, use of company equipment/phones, etc.)