Discover the global hiring and employment landscape in Ireland—a vibrant and dynamic country with a strong economy and a highly skilled workforce. Ireland is renowned for its business-friendly environment, making it a preferred destination for multinational companies.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Ireland market with Slasify's global premium HR platform.
| Capital | Dublin |
| Currency | Euro (EUR) |
| Payroll Cycle | Monthly |
| Minimum Wage | EUR 13.50 per hour |
| Annual Leave | 4 weeks |
| Personal Income Tax | 20%–40% |
The employee's income, up to a certain amount, is taxed at 20%. This is known as the standard rate of tax and the amount that it applies to is known as the standard rate tax band. The rest of their income is taxed at the higher rate of tax, 40%.
The amount that the employee can earn before they start to pay the higher rate of tax is known as the standard rate cut-off point.
| Standard rate cut-off point (EUR) | |
|---|---|
| Single person | 44,000 |
| Single parent | 48,000 |
| Married couple/civil partners, single income | 53,000 |
| Married couple/civil partners, multiple income | Up to 88,000, determined by the amount of the second income |
In addition to the above, those with a gross income of more than EUR 13,000 per year are liable to the Universal Social Charge (USC), which is levied progressively as follows:
| Taxable Income (EUR) | USC Rate (%) |
|---|---|
| Up to 12,012 | 0.5 |
| 12,012.01–27,382 | 2 |
| 27,382.01 –70,044 | 3 |
| Over 70,044 | 8 |
Note: Reduced rates of USC apply to those who are at least 70 years old or medical card holders, and whose income for the year is EUR 60,000 or less.
There are no local taxes on employment income in Ireland.
Generally, employers and employees between 16 years old and the pensionable age are liable to pay the Pay Related Social Insurance (PRSI) contributions. The amount of PRSI contributions will depend on the person's earnings and the class they are insured under.
This section shall cover Class A PRSI, which applies to most employees with reckonable pay of EUR 38 or more per week from all employments. More information on other classes can be accessed here.
| Contribution rate | Note | |
|---|---|---|
| PRSI (lower income band) | 8.9% | This is calculated based on the employee's weekly earnings up to EUR 527. |
| PRSI (higher income band) | 11.15% | This is calculated based on the employee's weekly earnings over EUR 527. |
| Contribution rate | Note | |
|---|---|---|
| PRSI | 4.1% |
Employees earning EUR 352 or less per week are exempted from making this contribution. Those earning between EUR 352.01 and EUR 424 per week can get a tapered credit to reduce the amount of contributions. |
The employment contract or the written terms of employment should state how often the employee is supposed to be paid, e.g. weekly or monthly.
Effective January 1, 2025, the minimum wage in Ireland is set at EUR 13.50 per hour, with sub-minimum wages allowed as follows:
| Age group | Minimum hourly rate of pay (EUR) | % of minimum wage |
|---|---|---|
| 20 and over | 13.50 | 100% |
| 19 | 12.15 | 90% |
| 18 | 10.80 | 80% |
| Under 18 | 9.45 | 70% |
Employees in certain sectors may have other minimum rates of pay. The rules for these sectors are set out in the employment agreements and orders made by Joint Labour Committees.
There are no statutory bonuses in Ireland.
Employers dismissing an employee must be able to show that they had fair grounds for dismissal and that they have followed fair procedures.
| Fair grounds for dismissal | Fair procedures for dismissal |
|---|---|
|
If an employee is dismissed, it is automatically presumed to be an unfair dismissal unless the employer can prove there are fair grounds to justify it, which may include the employee's competence, capability, qualification, conduct, legal status and whether there are grounds for redundancy. The specific actions an employer must take to justify their reasons for dismissal may vary according to the reason itself. More information on this can be accessed here. |
Employers should generally have written grievance and disciplinary procedures in place, setting out the stages and processes to follow when dealing with an employee's alleged shortcomings. The procedures generally allow for informal warnings, followed by written warnings and ultimately to dismissal. Under the Unfair Dismissals Act, employers must give their employees written notice of these procedures before dismissing them. |
Reasons for dismissal can be fair or unfair. Normally, employees must have been working for the employer for at least 12 consecutive months to bring a claim for unfair dismissal.
Employers who are dismissing their employees must observe the following minimum notice period or pay their employees in lieu of notice:
| Length of service | Notice Period |
|---|---|
| 13 weeks–2 years | 1 week |
| 2–5 years | 2 weeks |
| 5–10 years | 4 weeks |
| 10–15 years | 6 weeks |
| 15 years or more | 8 weeks |
Gross misconduct can lead to an immediate dismissal without notice or pay in lieu of notice. Some examples of gross misconduct include assault, drunkenness, theft, bullying and a serious breach of the employer's policies and practices.
There are no statutory requirements for employers to pay severance, though employees dismissed on the grounds of redundancy may be entitled to redundancy pay.
An employment contract can include a probationary period of up to 6 months, though in exceptional circumstances, this period can be extended up to a maximum of 12 months in total.
The probationary period can be extended if it is in the employee's interests or when the employee has been on extended leave, such as sick leave, during their probation. It can also be extended when it is justified by the nature of the work.
The Unfair Dismissals Act generally does not apply for employees on probation if the contract of employment is in writing and the probation lasts for a year or less. However, if the employee is dismissed due to a misconduct, the employee shall retain their right to due process and fair procedures.
Generally, employees shall not work more than an average of 48 hours per week, calculated over a set period of 4 months.
Employees may be required to work in excess of 48 hours per week, i.e. overtime, but their average working hours cannot exceed 48 hours a week.
Different set periods may apply for certain workers. For example, employees may agree to have their average weekly hours calculated over a period of 12 months, provided that the Labor Court approves. Read more on this here.
Employees shall be entitled to a 15-minute break when they have worked more than 4.5 hours, and a 30-minute break when they have worked more than 6 hours, which can include the first 15-minute break.
An employee's break shall not be at the end of the working day, and there is no legal requirement for these breaks to be paid, i.e. they are not considered working time.
Furthermore, employees who breastfeed or express milk can have extra breaks in work, which shall be paid for the first 2 years, or 104 weeks, of the baby's life. This break can be arranged in either of the following ways:
| Arrangement 1 | Arrangement 2 |
|---|---|
| 60 minutes time off, taken as a single 60-minute break, 2 30-minute breaks or 3 20-minute breaks | A reduction in work hours by 60 minutes in an 8 hour working day. |
There is no legal right to pay for working extra hours and there is no statutory levels of overtime pay. However, many employers pay employees higher rates of pay for overtime.
Certain sectors of employment have higher rates of pay for overtime than for normal hours as they are covered by Employment Regulation Orders and Registered Employment Agreements.
Employees shall be entitled to a daily rest period of 11 consecutive hours and a weekly rest period of 24 consecutive hours following a daily rest period. An employee's weekly day off shall fall on a Sunday unless otherwise stated in the employment contract.
Alternatively, employees may be granted two 24-hour rest periods in a week if it follows a week in which they did not get any 24-hour rest period. This period must include a Sunday unless otherwise stated in the employment contract.
Employees who are required to work on Sundays are entitled to certain benefits, such as extra pay. This is usually set out in the employment contract. If there is no agreement on the extra pay, then the employer must give the employee a reasonable allowance, pay increase or paid time off work.
Generally, full-time employees are entitled to paid leave during public holidays. There are 10 days of public holidays in Ireland for 2025.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| St. Brigid's Day | February 3 |
| St. Patrick's Day | March 17 |
| Easter Monday | April 21 |
| May Day | May 5 |
| June Bank Holiday | June 2 |
| August Bank Holiday | August 4 |
| October Bank Holiday | October 27 |
| Christmas Day | December 25 |
| St. Stephen's Day | December 26 |
Employees who qualify for the public holiday benefit may be entitled to, as decided by the employer. either a paid day off on the public holiday, a paid day off within a month of the public holiday, an extra day's annual leave or an extra day's pay. Employees can ask their employers which one these alternatives apply at least 21 days before the public holiday. If there is no response within 14 days before the public holiday, the employee is entitled to take the actual public holiday as a paid day off.
Employees are generally entitled to up to 4 weeks' paid annual leave depending on how much they work in a leave year.
| Method | Annual leave accrual |
|---|---|
| 1 | Employees shall be entitled to the full 4 weeks' paid annual leave If they have worked at least 1,365 hours in a leave year. This method cannot be used if the employee changed employment during the leave year. |
| 2 | Calculate 1/3 of a working week for each calendar month in which the employee worked at least 117 hours. |
| 3 | Calculate 8% of the hours the employee worked in the leave year, subject to a maximum of 4 working weeks. |
The statutory leave year runs from April 1 to March 31, though many employers use the calendar year, i.e. January to December, instead for administrative reasons.
Usually, employees can ask to take annual leave at specific times, and employers can either accept or refuse said request. Those who have worked for at least 8 months shall be entitled to an unbroken period of 2 weeks' annual leave.
Annual leave should be taken within the leave year. However, depending on the employer, employees can agree to take annual leave within 6 months of the relevant leave year. Any further carrying-over of annual leave would need to be agreed between the employee and the employer.
Also see: Carrying over annual leave due to illness
Employees who have worked for at least 13 continuous weeks before falling sick shall be entitled to 5 days of sick leave per calendar year, and this period is paid by the employer at 70% of the employee's normal pay, up to a maximum of EUR 110 per day.
To be qualified for the paid sick leave, the employee must be certified by a medical professional as unable to work.
Pregnant employees shall be entitled to take 26 weeks of maternity leave, with at least 2 weeks taken before the baby is born and at least 4 weeks after the baby is born. Employees must apply for maternity leave in writing at least 4 weeks before they want to start their maternity leave and provide a medical certificate confirming their pregnancy.
Employers are not legally required to pay their employees during this period, though employees may be entitled to receive Maternity Benefit from the Department of Social Protection.
Furthermore, Employees are entitled to take up to 16 weeks of additional unpaid maternity leave, which is not covered by the Department of Social Protection's Maternity Benefit.
New parents, usually those who do not take maternity or adoption leave, are entitled to 2 weeks' paternity leave within 26 weeks of the child's birth or adoption.
Employers are not legally required to pay their employees during this period, though employees may be entitled to receive Paternity Benefit from the Department of Social Protection.
Employees shall be entitled to 26 weeks' unpaid parental leave for each eligible child, which shall be taken before the child is 12 years old, or 16 years old if the child has a disability.
In general, the employee must have been working for the employer for at least 12 months to be entitled to parental leave. However, if the child is very near the age limit and the employee have been working for more than 3 months, the leave can be taken pro-rata.
If the employee has multiple eligible children, the parental leave is limited to 26 weeks in a 12-month period. However, parents of twins or triplets can take more than 26 weeks of parental leave in a year.
This leave can be taken either in a single continuous period or in blocks of at least 6 weeks. If taken over multiple periods, there must be a gap of at least 10 weeks between each block of parental leave per child.
Note: Each parent shall be entitled to 26 weeks' leave. If both parents work for the same employer, the employer can agree to have 14 weeks of a parent's parental leave entitlement to the other.
| Leave Type | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Adoptive Leave | Unpaid | 24 weeks |
This leave is granted for a parent of the adoptive couple or a parent adopting alone, beginning on the day the child is placed with them. Employees must give their employers a 4-week notice before taking this leave. Those with enough PRSI contributions you may qualify for Adoptive Benefit. Employees are also entitled to take up to 16 weeks' additional unpaid adoptive leave, but this shall not be covered by Adoptive Benefit. |
| Carer's Leave | Unpaid | 13–104 weeks |
For employees with at least 12 months of service to provide full-time care and attention for a person in need. Those with enough PRSI contributions you may qualify for Carer's Benefit or the means-tested Carer's Allowance. |
| Domestic Violence Leave | Paid | 5 days per year | For employees who are experiencing domestic violence to take care of urgent and essential matters relating to their situation, or if they are supporting a relevant person. |
| Health and Safety Leave | Both | - |
For pregnant or breastfeeding employees in the event that their employer cannot remove a risk to their health, or are unable to assign them alternative "risk-free" duties. To qualify, the employee must meet certain criteria and PRSI contribution conditions. The employer pays the employee's normal wage for the first 21 days of leave and the Department of Social Protection pays the remainder. |
| Leave for Medical Care | Unpaid | 5 days per year | For employees who need to take time off work to deal with serious medical care for a child or other relevant persons. |
| Parent's Leave | Unpaid | 9 weeks |
This leave can be taken during the first 2 years of a child's life or their placement with the family. Employees must notify their employers at least 6 weeks before taking this leave. Those with enough PRSI contributions you may qualify for Parent's Benefit. |
| Pregnancy-Related Leave | Paid | Varies |
Employees may be entitled to take pregnancy-related leave, e.g. for medical visits or to take ante-natal classes. The duration of the leave vary depending on the reason for taking the leave, and employees must to notify their employers in advance of taking such leave. |
Employees in Ireland may be entitled to many other leaves depending on their personal circumstances, including, but not limited to, Force Majeure Leave, Compassionate Leave and Jury Service Leave. Read more on these leaves here.
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