8.8% - 11.05%
weekly or monthly
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This country guide is for general informational purposes only and should not be construed as legal advice, nor as binding based on your relationship with Lano. When using Lano's solutions, the specifics may depend on your EOR and Payroll setup with our partners. Although we update this guide regularly, it may not reflect current legal developments. Lano Software GmbH disclaims any liability for any actions you take or refrain from taking based on the content contained in this country guide.
There are three main reasons why international employers should consider hiring in Ireland: First of all, the country’s labour force is young and highly educated. In fact, the country’s population is the youngest in the whole of Europe and according to IDA Ireland, over 53.5% of Ireland’s population aged between 30 and 34 hold a third level qualification, with science, technology, maths and engineering being in high demand.
Second, Ireland is considered to be a pro-business country and the Irish economy ranks among the fastest growing economies in Europe. And finally, the country has a very modern telecommunication infrastructure providing the means for an efficient workflow and smooth cooperation processes with remote team members.
Irish labour law does not specifically require a written employment contract. However, employers must provide their new employees with a written statement outlining the terms of employment within the first two months after the employee’s first day. The statement should include the following information:
Identification of both parties
Date of commencement (and employment duration for temporary contracts)
Job title and description
Salary and payment details
Applying pension scheme
Working hours and overtime regulations
Total number of holidays
Regulations on sick leave and sick pay
Notice periods for employment termination
Reference to collective agreements
As there is no specific law on probation periods, they only apply when fixed in the employment contract or the terms of employment. A probationary period of three to six months is considered to be the common standard.
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The legal maximum employees are allowed to work within one week is 48 hours but a standard working week in Ireland comprises 40 hours usually spread over five days.
Rest periods in Ireland are regulated as follows:
minimum daily rest period: eleven consecutive hours
minimum weekly rest period: 24 consecutive hours
15-minute break after 4.5 hours of consecutive work
30-minute break after six hours of consecutive work
Usually, breaks are not paid.
It is up to the employer and the employee to agree on overtime payment as there is no statutory obligation for employers to grant extra pay for overtime work.
Employees can be paid either weekly or monthly. In no case should payments be issued later than at the end of each month.
Minimum wage in Ireland varies depending on the employee’s age. In January 2023, the minimum wage rates increased to:
EUR 11.30 for employees of 20 years and older
EUR 10.17 for employees aged 19
EUR 9.04 for employees aged 18
EUR 7.91 for employees under 18
Under the new statutory sick pay scheme for 2022, employers must provide sick pay equal to 70% of the employee’s wages (capped at EUR 110 per day) for 3 days. The number of paid sick days is due to increase as follows:
5 days in 2024
7 days in 2025
10 days in 2026
In order to receive sick pay, the employee must have worked for the employer for at least 13 weeks and provide a medical certificate.
Although not required by law, many companies offer performance-based bonuses.
Employees and employers in Ireland are subject to the following tax and social security contribution rates (last review February 2023):
12.5% corporate tax
23% VAT (standard rate)
up to 40%
up to EUR 40,000: 20%
over EUR 40,000: 40%
up to 11.05%
Pay-related social insurance (PRSI):
11.05% of weekly employee salary exceeding EUR 441
8.8% of weekly employee salary under EUR 441
up to 12%
Pay-related social insurance (PRSI):
Up to EUR 352 per week: 0%
Above EUR 352 per week: 4%
Universal Social Charge (USC):
EUR 0 – EUR 12,012: 0.5%
EUR 12,013 – EUR 22,920: 2%
EUR 22,921 – EUR 70,044: 4.5%
Over EUR 70,044: 8%
Please note that the social security contributions indicated above do not necessarily reflect the actual employment costs. These may differ depending on the employment contract and due to other factors (e.g. 13th and 14th salary, health insurance allowances, accrual for severance pay, etc.).
Irish labour law provides for a minimum of 20 days, i.e. four weeks, of annual leave. However, employers and employees may agree on additional days off.
The country observes nine public holidays. Employees who cannot take a day off on that particular day are entitled to either one of the following:
Replacement day off which must be granted and taken within one month after that day
Extra day of annual leave
Compensation in form of an extra day’s pay
2023 saw the introduction of a new public holiday in Ireland. From now on, the first Monday of February will be a public holiday to mark St Brigid’s Day.
Every female employee in Ireland, regardless her length of service or weekly hours, is entitled to 26 weeks of maternity leave. In addition, mothers of newborn babies have a right to claim another 16 weeks of (unpaid) maternity leave which leads to a total of 42 weeks of statutory maternity leave.
It is mandatory for mothers to take at least two weeks prior to birth and at least four weeks after giving birth. The first 26 weeks of maternity leave are paid. Whether an employer has to pay the employee during maternity leave or not depends on what is specified in the employment contract.
If the employment contract does not specify maternity leave payments, employees receive statutory maternity benefits which amount to EUR 245 per week (effective 2021). However, female employees have to meet a few conditions in order to claim maternity benefits.
Statutory paternity leave is two weeks, beginning at any point within the first six months after the child’s birth. Employers are not obligated to pay their employees during this time.
Parents have the right to take 26 weeks of unpaid parental leave until their child reaches the age of twelve. Since July 2022, there is an additional entitlement to 7 weeks of so-called parent’s leave, which is paid.
Employees who have a family member who needs constant care can take unpaid leave in order to fulfill their family duties.
In addition to employment termination by default – i.e. in case of a fixed-term contract – or voluntary termination by the employee, Irish labour law provides for the following reasons for employee dismissal:
Both employees and employers have to respect certain notice periods when terminating the employment. Notice periods for employers depend on the employee’s length of service and range from one week to eight weeks:
one week: thirteen weeks to two years of service
two weeks: two to five years of service
four weeks: five to ten years of service
six weeks: ten to fifteen years of service
eight weeks: over fifteen years of service
Employees who are made redundant are entitled to a minimum severance pay of one week’s salary (capped at EUR 600) plus two weeks of pay for every year of service. Dismissed employees are generally entitled to receive any outstanding payments as well as payment for any untaken annual leave.
This country guide is for informational purposes only and should not be construed as legal advice. The content of this guide contains general information, and although we update this guide regularly, it may not reflect current legal developments. Lano Software GmbH disclaims any liability for any actions you take or refrain from taking based on the content contained in this country guide.
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