How to hire and pay employees in Ireland
With Instahirin, your business can easily hire employees in Ireland. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Ireland
Before hiring employees in Ireland, one key thing employers should be aware of is the country’s strict adherence to GDPR (General Data Protection Regulation). Employers must protect employee personal data and ensure proper procedures are followed, especially when transferring data internationally. Being compliant with data privacy laws is essential before making any cross-border hires.
Another important consideration is understanding employee benefits and employment laws in Ireland. Employers are generally expected to provide statutory sick pay, paid annual leave, public holiday entitlements, and pension contributions (especially under auto-enrolment schemes). Ireland also has strong protections around employment contracts, notice periods, and working hours.
At a glance
CURRENCY
Euro (EUR)
OFFICIAL LANGUAGE
English and Irish
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
12.05%
of gross salary
13th / 14th SALARY
N/A
Good to know
Ireland offers a public healthcare system, funded by taxes, which provides access to essential services. However, care may involve waiting times. Many employers provide private health insurance as a benefit to help employees access faster and more comprehensive care.
The maximum average working week is 48 hours, calculated over a 4-month period, under the Organisation of Working Time Act. Employees are entitled to daily and weekly rest periods, and overtime pay is not mandatory unless stated in the contract or collective agreement.
Labor laws in The Ireland
Working hours and overtime
Ireland’s standard workweek is 39 hours, usually spread over five days. Employees are entitled to a daily rest period of 11 consecutive hours and a weekly rest period of 24 straight hours, in compliance with the Organisation of Working Time Act 1997.
Employment contracts
All supported employees in Ireland must receive a written statement of employment outlining key terms such as salary, job title, work location, hours, probation period, and notice periods. The full contract must be provided within five days of the employee's start date, under the Employment (Miscellaneous Provisions) Act 2018.
Key contract components include:
- Salary and compensation terms
- Job title and description
- Place and hours of work
- Duration of probation period
Probationary period
Probationary periods in Ireland typically last up to six months, with a maximum permissible duration of 12 months under the European Union (Transparent and Predictable Working Conditions) Regulations 2022. During probation, employees may be subject to reduced notice periods.
Calculate costs to hire internationally
Benefits and leave in The Ireland
Annual leave in Ireland
Full-time employees earn a minimum of four working weeks of paid annual leave per year. Leave accrual is based on the hours worked or the employment contract and can carry over to up to six months (unless extended). Employers must track and document time off.
Sick leave
As of 2025, employees are entitled to five days of statutory sick pay per year, which is paid at 70% of regular earnings up to a daily maximum of €110.
Parental leave
Per the Parental Leave Act 1998, parents can take up to 26 weeks of unpaid leave per child with an option for an unpaid extension. Parents are also eligible for paid leave and maternity/paternity leave. As of 2025, parents get seven weeks of paid leave.
Holidays
Ireland recognizes 10 national public holidays, including St. Patrick’s Day and Christmas Day. Employees are entitled to a paid day off or compensatory time for these holidays. However, some sectors (e.g., retail) provide alternate time off arrangements. Note that public holidays are separate from annual leave entitlements.
Employer tax
In Ireland, employers typically contribute around 11.05% of an employee’s gross salary to Pay Related Social Insurance (PRSI) and may also contribute to occupational pension schemes, with the exact amount depending on the employer’s policies and employee earnings.
Individual tax
In Ireland, individuals pay income tax at progressive rates of 20% and 40%, along with Pay Related Social Insurance (PRSI) and the Universal Social Charge (USC), with total deductions depending on income level and personal circumstances.
Termination in The Ireland
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).
Notice period
- One week for employment under two years
- Two to eight weeks for longer tenures (up to 15+ years)
- Longer notice periods may be specified in contracts
Start hiring employees in
Ireland
Setting up a business entity in Ireland just to hire employees can be slow, costly, and hard to scale. Navigating Irish employment laws, tax obligations, and employee rights can be complex and managing everything manually leads to errors and inefficiencies.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Ireland and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
