Hiring employees in Ireland means navigating complex local labor laws, payroll regulations, and tax requirements. Utilizing an employer of record, companies can easily manage employee regulations in Ireland. The employer of record (EOR) model simplifies this process, allowing your company to hire talent in minutes.

As a global EOR expert in Ireland, G-P manages payroll, employment contract best practices, statutory and market norm benefits, and employee expenses, and more via our global entity infrastructure. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. 

With an EOR solution, you can focus on expanding without the obstacles of international compliance. This international approach enhances business reach and scalability by enabling hiring worldwide without a local entity.

Hiring in Ireland with an employer of record

For businesses using SaaS EOR services in Ireland to hire employees, understanding salary expectations is key. In Ireland, companies need to understand the impact of country-specific tax regulations on compensation. Salaries vary by industry, role, and experience, but staying competitive is essential for attracting top talent. An EOR in Ireland offers companies insight into specific salary benchmarks, global and local standards. Beyond base pay, understanding benefits like health insurance and pension contributions is crucial to fulfilling the talent requirements swiftly and effectively. An EOR also helps with managing compliance in hiring and onboarding.

Employment Contracts in Ireland

Irish law requires employers to provide employees with a written statement of their terms of employment. This is a two-part process. Within the first 5 days of employment, an employee must receive a “Day 5 Statement” containing 5 core terms: full names of the employer and employee, employer’s address, contract duration, pay calculation details, and expected work hours.

Within one month of the start date, the employer must provide the full written statement of remaining terms. This includes place of work, job title, start date, compensation details (in EUR), pension information, paid leave entitlements, and notice requirements. A comprehensive employment contract issued at the start can satisfy both requirements.

Working Hours in Ireland

Under the Organisation of Working Time Act 1997, employees cannot work more than an average of 48 hours in a 7-day period. Employees are also entitled to a daily rest period of at least 11 consecutive hours per 24 hours.

The typical business day in Ireland is from 9 a.m. to 5:30 p.m., with an unpaid lunch break of 30 to 60 minutes. Overtime is not a statutory right and is governed by the employment contract. Any overtime payments cannot result in an employee's hourly rate falling below the national minimum wage. Employers must compensate employees for Sunday work with a premium payment or paid time off in lieu, as outlined in their contract.

Public holidays in Ireland

Ireland observes 10 public holidays where employees are typically entitled to a paid day off:

  1. New Year's Day (January 1)

  2. St. Brigid's Day (First Monday in February)

  3. St. Patrick's Day (March 17)

  4. Easter Monday

  5. May Day (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. St. Stephen's Day (December 26)

If a public holiday falls on a weekend, or a day an employee is not scheduled to work, they are still entitled to the benefit. The employer must provide either a paid day off within one month, an additional day of annual leave, or an additional day's pay.

Annual leave in Ireland

Full-time employees in Ireland are entitled to a statutory minimum of 4 working weeks (20 days) of paid annual leave. The amount of leave can be calculated in several ways, with the employee entitled to whichever is greatest:

  • 4 working weeks for employees who have worked at least 1,365 hours in the leave year.

  • One-third of a working week per calendar month in which the employee worked at least 117 hours.

  • 8% of the hours worked in a leave year, up to a maximum of 4 working weeks.

The default leave year runs from April 1 to March 31, but an employer can specify a different period. By adhering to these laws, companies ensure compliance and employee satisfaction.

Sick leave in Ireland

As of 2025, Ireland’s Statutory Sick Pay (SSP) scheme requires employers to provide paid sick leave to eligible employees. The entitlement is being phased in and will increase to 10 days in 2026. For 2025, the entitlement is 7 days of paid sick leave per year.

Employers must pay SSP at a rate of 70% of the employee's normal wages, capped at EUR 110 per day. To qualify, an employee must have at least 13 weeks of continuous service and provide a medical certificate from the first day of absence. Such policies enhance the Irish business environment for employers and employees alike. Employers may offer more generous sick pay schemes. Compliant systems are critical for maintaining operations smoothly.

Family and parental leave in Ireland

Ireland provides several distinct types of leave for parents. Employers generally are not required to pay employees during these leaves, but government-paid benefits are often available.

  • Maternity leave: Pregnant employees are entitled to 26 weeks of ordinary maternity leave and a further 16 weeks of unpaid additional maternity leave. A government-paid Maternity Benefit may be available during the ordinary leave period.

  • Paternity leave: Eligible parents are entitled to 2 weeks of leave, to be taken within the first 6 months after birth or adoption. A government-paid Paternity Benefit may be available.

  • Parent's leave: Each parent is entitled to 7 weeks of leave to be taken within the first 2 years of a child's life or adoption. A government-paid Parent's Benefit may be available.

  • Parental leave: Each parent is entitled to 26 weeks of unpaid leave per eligible child, to be taken before the child's 12th birthday. There is no state benefit for this leave. Employees must have at least one year of continuous service with their employer to qualify for the full entitlement

An Ireland employer or record platform helps guide organizations in navigating these leave arrangements effectively.

Health insurance and benefits in Ireland

While all residents in Ireland have access to the public healthcare system, long waiting times for certain procedures make private health insurance a highly valued and common employee benefit. Employer-provided private health insurance is a taxable benefit-in-kind (BIK) and must be processed through payroll. Handling benefits accurately requires compliant payroll systems.

Other common supplementary benefits include life assurance, company cars or car allowances, and wellness programs. Generally, we recommend budgeting an additional 20%-25% on top of the gross salary to cover total employer costs, including mandatory social security contributions and market-norm benefits. 

An Ireland EOR simplifies the management of health insurance and other benefits, ensuring compliance with local regulations and market norms while handling the complexities of taxable benefits like private health insurance through payroll.

Termination and severance in Ireland

An Ireland employer of record simplifies the complexities of termination and severance, ensuring compliance with Irish labor laws. It helps navigate fair dismissal requirements, notice periods based on length of service, and statutory redundancy payments, reducing legal risks and administrative burdens for businesses.

Probationary periods must be specified in the employment contract and, under recent legislation, cannot normally exceed 6 months. This can only be extended up to a maximum of 12 months in exceptional circumstances if it is in the employee's interest.

After one year of service, employees are protected from unfair dismissal. Terminating an employee in Ireland requires a fair and documented reason—such as capability, conduct, or redundancy—and a procedurally fair process. The statutory minimum notice period depends on the employee's length of service:

  • 13 weeks to 2 years: 1 week's notice

  • 2 to 5 years: 2 weeks' notice

  • 5 to 10 years: 4 weeks' notice

  • 10 to 15 years: 6 weeks' notice

  • More than 15 years: 8 weeks' notice

Severance pay is not statutorily required unless the termination is due to redundancy. In a redundancy, an employee with over 2 years of service is entitled to a statutory payment of two weeks' pay per year of service, plus one additional week. This payment is calculated on a maximum weekly earning of EUR 600.

Taxes and pensions in Ireland

An Ireland employer of record solution helps navigate complex tax systems. Employers and employees must contribute to the Social Insurance Fund through Pay Related Social Insurance (PRSI).

  • Employee PRSI: 4% on weekly earnings over EUR 352.

  • Employer PRSI: 8.8% on weekly earnings up to EUR 441, and 11.05% on all earnings for employees earning more than EUR 441 per week.

Employees also pay a Universal Social Charge (USC) on gross income over EUR 13,000. As of 2025, the primary rates are:

  • 0.5% on the first EUR 12,012

  • 2% on the next EUR 13,748

  • 4% on the next EUR 44,284

  • 8% on the balance

Income tax (PAYE) is progressive. For a single individual, the standard rate of 20% applies to income up to EUR 42,000, with a higher rate of 40% applying to income above this threshold (2025 figures).

As of 2025, Ireland is implementing an auto-enrollment retirement savings system. Under this system, employers without an existing occupational pension scheme will be required to enroll eligible employees into a new state-sponsored plan and make matching contributions.

Selecting the right EOR partner in Ireland

When choosing an Employer of Record (EOR) in Ireland, it's crucial to evaluate their expertise across diverse employment situations. Look for a provider with a strong track record of assisting international companies, the ability to offer customized solutions, and a thorough grasp of Irish legal frameworks. An EOR that delivers integrated, efficient processes and dependable support can significantly enhance the cost-effectiveness of your global hiring initiatives. Partnering with an EOR that aligns with your business goals will guarantee smooth employment operations in Ireland, all while ensuring strict adherence to local legal obligations.

Read more on how to select the best employer of record.

Why G-P EOR?

G-P EOR is the recognized leader in global employment, ranked No. 1 in every industry analyst report. G-P’s global employment platform delivers everything companies of all sizes need to manage the full employee lifecycle with its trusted Global HR Agent, G-P Gia, and AI-powered Employer of Record (EOR) and Contractor products. G-P supports teams in 180+ countries with more than a decade of global employment experience, the largest team of in-country HR, legal, and compliance experts, and its unmatched proprietary knowledge base.

G-P is also the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while guaranteeing consistent and accurate data across your integrated systems.

Request a proposal today to start hiring in Ireland today.