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Employer of Record Ireland

Global Expansion's Employer of Record services provide the ability to quickly grow, manage, and pay international teams, without the need for a local entity. Our award-winning tech platform plus integrated support services make hiring, managing and paying your global workforce a breeze.

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Hiring in Ireland

For companies that want to hire employees and run payroll in Ireland without first establishing a business entity or subsidiary, Global Expansion provides Employer of Record services (EOR Ireland).

Our EOR services streamline and simplify the global hiring process. We handle the core global HR tasks - compliance, contracts, payroll, global benefits, and more - so that you forgo hours of ongoing admin, human error, and risky compliance.

In Ireland, companies would historically establish a subsidiary or branch office to legally hire in that country. With Global Expansion, this step is no longer necessary. We have subsidiaries all over the world and therefore can legally hire on your behalf. The employees are ours only on paper and report directly to managers within your company.

Need assistance hiring in Ireland? Contact us about our International EOR  Service

Labor Laws in Ireland

Employment laws in Ireland are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Irish employment laws and policies here.

Employment Contracts

There are 5 types of employment contracts in Ireland.

  1. Permanent contract

    A permanent contract is a full-time, long-term position. This full-time employment agreement has no specified end date. If either the employer or the employee wish to terminate the contract, either party must provide notice. The length of the notice period for resignation or termination is determined by contract or legislative requirements. Employers in Ireland have the right to terminate an employee's contract for reasons such as redundancy, misconduct, or other grounds for dismissal under Irish labor laws.

  2. Fixed-term contract

    In Ireland, contracts with a set length or goal are called "fixed-term contracts." When the date set by the employer and employee for the end of the contract comes, the contract is over. The contract is also over if the employee has done what he or she was hired to do. Either the employer or the employee can end the contract by giving the other party notice or if certain things make their agreement invalid.

  3. Contract of indefinite duration (CID)

    The contract is in effect until either the employer or the worker decides to end it. People who have worked on more than one fixed-term contract in the past 4 years can get a CID. For an employee to be eligible for a CID, they must continue to work under the same terms and conditions as their previous fixed-term contracts. Even if the employee is eligible for a CID, the employer must explain in writing why they would rather give them a fixed-term contract instead.

  4. Part-time contract

    Part-time workers, such as apprentices and casual workers, are legally protected under this type of contract. In terms of employment contracts, employers must treat part-time and full-time employees equally. This is based on the Protection of Employees (Part-Time Work) Act of 2001, which governs the rights and working conditions of part-time employees.

  5. Zero-hour contract

    This contract applies to individuals who are available for work but do not have set hours. The Organization of Working Time Act of 1997 and the Employment (Miscellaneous Provisions) Act of 2018 protect the rights of people with this type of contract. It is intended for specific purposes, such as casual work, emergencies, and temporary replacement for absent employees.

Probation Period in Ireland

The duration of a probationary period can range from 3 months to 11 months but should not exceed 12 months, regardless.

Annual Leave

Employees are normally entitled to 20 vacation days in Ireland each year in addition to public holidays.

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Holidays in Ireland

The following is a comprehensive list of public holidays observed in Ireland:

New Year’s Day
St Brigid's Day
Patrick’s Day
Easter Monday
May Day
First Monday in June
First Monday in August
Last Monday in October
Christmas Day
Stephens Day


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Maternity Leave in Ireland

Employees who are eligible for maternity benefits must take at least 2 weeks of unpaid leave and no more than 16 weeks before the baby's due date. Female employees are entitled to 26 weeks of paid maternity leave and 16 weeks of unpaid maternity leave, which can be divided however they see fit.

The amount of maternity pay in Ireland varies depending on whether the individual is eligible for a full or partial payment. Those eligible for the full weekly rate of EUR 250 will receive this benefit for 156 days beginning 2 weeks before the baby's due date.

Paternity Leave in Ireland

Employers are not required to pay employees during paternity leave, but employees may be eligible for state paternity benefits. Fathers are entitled to paid paternity leave for the first 6 months following the birth or adoption of their child. The entitlement is 2 weeks of leave, and the intended dates must be communicated to the employer at least 4 weeks before the leave is scheduled to begin.

Ireland Sick Leave

  • As of 1st January 2023, employees are entitled to 3 days of paid statutory sick leave
  • Sick pay is paid by the employer at 70% of an employee’s normal pay up to a maximum of €110 a day.
  • In order to be eligible to receive paid sick leave, an employee must meet the following conditions: -
    • An employee must be employed for at least 13 weeks with an employer
    • An employee must be certified by a GP as unable to work

Working Hours in Ireland

According to Ireland’s Labor Law, the average working week is 40 hours, with a legal maximum of 48 work hours. The typical Irish work day lasts from 9 a.m. to 5:30 p.m., with a minimum half-hour lunch break. Many businesses, including government agencies, are closed between 12:30 and 2 p.m.

Overtime Pay in Ireland

The employment contract of an employee should state whether they are required to work overtime and the rates of pay for doing so. Overtime pay is not a legal requirement nor are there any overtime laws in Ireland, but many employers do pay more for working more than 40 hours per week or more than 90% of the time.

Termination of Employment in Ireland

Those who are terminated or made redundant may be entitled to certain benefits, including notice and payment for annual leave earned but not taken. Regardless of length of service, an employee must provide at least one week's notice to terminate an employment contract. The amount of termination notice owed to an employee depends on the length of service.

Employees who are laid off are entitled to two weeks' gross salary for every year of service, in addition to one week's pay. The weekly payout computation is subject to a cap of EUR 600.

Notice Period in Ireland

The following table breaks down the right to a notice period based on length of service:

Length of Service

Notice Period

13 weeks to 2 years of service 1 week
2 years to 5 years 2 weeks
5 years to 10 years 4 weeks
10 years to 15 years 6 weeks
15 years and beyond 8 weeks

Regardless of length of service, an employee must provide at least one week's notice to terminate an employment contract.

Severance in Ireland

Employees who are laid off are entitled to 2 weeks' gross pay for every year of service, in addition to one week's pay. The payment calculation is subject to a weekly cap of EUR 600.

Ireland Salary and Wages

Average Salary in Ireland

According to the Ireland’s Central Statistics Office, in Q3 2022 the average gross weekly pay was EUR 864,32. This equates to EUR 3,745.4 per month, or EUR 44,944.64 per year. This number is for base wages only.

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Minimum Salary in Ireland

The Irish minimum wage is EUR 10.50 per hour, which will increase to EUR 11.30 per hour starting 1st Janary, 2023.

An employee's gross minimum wage includes the following:

  • Basic salary
  • Shift premiums
  • Bonuses
  • Service charges

Workers who are not entitled to minimum wage include:

  • Employees hired by a close relative
  • Employees in a mandatory apprenticeship
  • Employees aged under 20

13th Month Salary in Ireland

There is no legal obligation to pay the 13th or 14th month's salary. On a discretionary basis, employers may also award a variety of other bonuses or incentives.

  • Individual performance-based bonuses
  • Company performance bonuses
  • Goal-based bonuses
  • Holiday or end-of-year bonuses
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Income Tax in Ireland

Here is everything you need to know about Ireland’s income tax policies:

Tax Residence

A person is tax resident in Ireland for a certain tax year if they were there for at least 183 days that year or 280 days between that year and the year before, with at least 30 days in each year. For taxation purposes, if a person spends any portion of the day in Ireland, they are considered to have lived there for one day.

Individuals who are tax resident in Ireland are normally subject to tax on worldwide income, including employment income, regardless of whether the employment is carried on in Ireland or abroad.

However, exceptions can apply to the following individuals:

  • Foreign-domiciled individuals
  • Individuals who commute to work outside Ireland and pay tax on the income from the employment outside Ireland

The tax rate on foreign income in Ireland is as follows:

Foreign-domiciled Individuals

Individuals residing outside Ireland are entitled to a remittance basis of assessment in Ireland on investment income derived outside Ireland as well as income from employment duties performed outside Ireland, to the extent that the employment income is paid outside Ireland under a foreign contract.

  • If an individual is on Irish payroll, Pay-As-You-Earn (PAYE) withholding must be accounted for on all employment earnings, including benefits.
  • If an individual is on a payroll outside Ireland, PAYE withholding is required on the amount of employment earnings (including benefits) attributable to duties performed in Ireland.
  • Nonresidents are generally subject to Irish tax on income arising in Ireland, unless they are protected by the provisions of a double tax treaty.
  • Most payments made by an employer, including salary, bonuses, benefits in kind, certain equity income and expense allowances, are subject to income tax, unless a prior agreement is made with the tax authorities.

Taxation of Foreign Trades and Professions

Interest income stemming from “foreign securities” (i.e. stocks/bonds), other than profits associated with public revenue dividends, and income pertaining to foreign possessions (e.g. salary from foreign jobs, and profits from business operations carried out in a foreign country) are subject to income tax in Ireland.

With regards to interest income stemming from foreign securities and foreign possessions, non Irish residents are obligated to pay tax only on the portion of their income that is remitted to Ireland.

Exemption Limits

An income tax exemption is available for certain individuals aged 65 years or over. These individuals are only liable to income tax if their income is above a specified limit.

For 2022, the specified limit is EUR 18,000 for an individual who is single/widowed and EUR 36,000 for a married couple. These limits are increased in respect of dependent children.

Marginal relief may apply where the individual's total income exceeds the specified limit.

Filing status

2022 (EUR)


Tax at 20%

Tax at 40%

Single and widowed person: no dependent children Income up to 36,800 Balance of income over 36,800
Married couple: one income Income up to 45,800 Balance of income over 45,800
Married couple: 2 incomes (of at least €27,800 each) Income up to 73,600 Balance of income over 73,600
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Social Security in Ireland

  • Ireland imposes payroll taxes for Pay Related Social Insurance (PRSI) on all employment income, including most benefits.
  • Employed individuals are generally subject to PRSI on income from employment, including benefits in kind. 
  • A contribution based on each employee’s salary and benefits is payable by employers. 
    PRSI contributions also apply in respect of income from a trade or profession or from investment income.
  • The minimum contribution payable is EUR 500. 
  • Payment must be included with preliminary tax, which is payable on or before 31 October of each year.
  • PRSI applies to unearned income of the following individuals: 
    • Employed contributors under 66 years of age
    • Individuals under 66 years of age receiving a taxable pension
  • The 2023 PRSI rates are as follows:

Pay Related Social Insurance (PRSI) Rates


Employer (%)

Employee (%)

Class A1 - most employed persons 11.05 4
Class S1 - proprietary and non-executive directors not insurable under Class A 0 4
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Deductible Expenses in Ireland

Personal Deductions

Individuals are eligible to claim several deductions against their taxable income. Some of the main deductible expenses are as follows:

  1. Pension Contributions

    Deductions against pension contributions are subject to an age related limit and an earnings limit. The age limit varies between 15% (for individuals under 30 years old) and 40% (for individuals over 60 years old). Individuals can claim tax relief against contribution to the following pension schemes/plans:

    • Occupational Pension Schemes
    • Personal Retirement Savings Accounts (PRSAs)
    • Retirement Annuity Contracts (RACs)
    • Qualifying overseas plans
  2. Education Expenses

    Individuals can benefit from reimbursement for educational expenses paid for third level education. Scholarship expenses in general are accounted for in this estimate, as well as fees paid for foreign language and Information Technology courses.

    This type of deduction is subject to a maximum limit of EUR 7000 per course/person or academic year. Additionally, a single claim for deduction against the aforementioned education expenses are subject to a singular disregard amount of EUR 3000 or EUR 1500 per tax year (depending on whether a student is enrolled on a full time or part time basis).

  3. Investment

    Investment in qualifying companies via the following incentive schemes:

    • Employment Investment Incentive (EII)
    • Start-up Capital Incentive (SCI)
    • Start-Up Relief for Entrepreneurs (SURE)

    The maximum investment on which individuals can claim a relief in a year is:

    • EUR 150,000 for the years up to and including 2019.
    • EUR 500,000 in respect of the years after 2019, subject to those shares being held for a minimum period of seven years
    • EUR 250,000 for years after 2019, where the shares are held for a minimum of four years only
  4. Donations and Covenants

    Claims for deductions against charitable donation are subject to a minimum donation of EUR 250 and a maximum donation of EUR 1,000,000 per year

    Individuals can only claim tax relief against covenants to the following: -

    • Permanently Incapacitated minors
    • Permanently Incapacitated adults
    • Donation of heritage items/properties
    • Individuals who are 65 years or older
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Standard Deductions

Individuals are eligible to claim certain tax credits based on their marital status, children or age.

Some of the main tax credits available to individuals in 2022 are as follows:

Tax Credit


Single person 1,700
Married person or civil partner 3,400
Employee Tax Credit (formerly known as the PAYE tax credit) 1,700
Earned Income tax credit 1,700
Widowed person or surviving civil partner in year of bereavement 3,400
Widowed person or surviving civil partner without dependent child 2,240
Widowed person or surviving civil partner with dependent child 1,700
Single Person Child Carer Credit 1,650
Incapacitated Child Credit 3,300
Blind Tax Credit: -
Single person
Married - one spouse or civil partner blind
Married - both spouses or civil partners blind

Age tax credit
Single, widowed or a surviving civil partner
Married or in a civil partnership

Dependent relative tax credit 245
Home carer tax credit 1,600

Business Deductions

Individuals can claim tax relief for expenses directly related to the operation of their business. Some of the main business deductions that can be claimed against their taxable income are as follows:

  • Purchase of products for the purpose of resale
  • Salary of employees
  • Rent and utility bills pertaining to the use of an office/building for business purposes
  • Costs associated with using vehicles and machines for business related activities
  • Lease payments pertaining to the use of vehicles and machines for business related activities
  • Accountancy costs
  • Financing costs (i.e. interest costs associated with borrowing capital to fund business operations)
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Immigration Ireland

Learn about immigration requirements in Ireland, work visa requirements, work permits and more.

Need assistance hiring in Ireland? Contact us about our International EOR  Service

Critical Skills Employment Permit

To obtain a Critical Skills Employment Permit, an individual must be employed under an Irish employment contract and paid directly from an Irish payroll for over 2 years. An initial permit is available for a fee of EUR 1,000 and a period of 2 years.

An individual who is granted an employment permit for the first time in Ireland is expected to stay with the initial employer for a period of 12 months. No more than 50% of employees of an Irish employer may be from non-EEA countries.

The minimum remuneration requirement is EUR 64,000. Starting on October 1, 2014, remuneration can be made up of a basic annual salary (equal to at least the Irish National Minimum Wage) and health insurance payments. Individuals in all occupations, except those that are harmful to the public interest, may be eligible for a Critical Skills Employment Permit. The individual must have a third-level qualification (at least a degree) and the role must be on the Highly Skilled Occupations List.

General Employment Permit

An individual must be employed in an eligible occupation under an Irish employment contract and paid directly from an Irish payroll to obtain a General Employment Permit. A labor-market needs assessment is required. The required minimum remuneration is EUR 30,000. Remuneration can be made up of Basic Annual Salary (equal to at least the Irish National Minimum Wage) and Health Insurance Payments as of October 1, 2014.

The remuneration threshold is reduced from EUR 30,000 to EUR 27,000 with respect to employment permit applications under the General Employment Permit category for the following individuals:

  • Non-EEA graduates of overseas third-level institutions (universities and third-level colleges) that have been offered an Information Technology Graduate position on the Highly Skilled Occupations List
  • Non-EEA graduates of Irish institutions who have been offered a graduate position on the Highly Skilled Occupations List
  • Technical or sales support roles with non-EEA language requirements

A General Employment Permit is valid for 6 months (for a fee of EUR 500) or up to 2 years. After 5 years, a free indefinite extension may be available. Non-EEA employees may not make up more than 50% of an Irish employer's workforce. An individual who is granted an employment permit in Ireland for the first time is expected to stay with the initial employer for a period of 12 months.

Intra-Company Transfer (ICT) Permit

To obtain an ICT Permit, an individual must be transferred to a company related to his or her Irish employer (that is, a sister, parent, or subsidiary) and must continue to be on a foreign employment contract and foreign payroll (full salary must be paid by the foreign employer outside Ireland). Only senior management, key personnel, and individuals assigned to Ireland for specific training purposes are eligible for an ICT Permit. The relevant transferee must have worked for the overseas company for a minimum of 6 months prior to the transfer.

The minimum reumeration is EUR 40,000. Starting on October 1, 2014, remuneration must include a basic annual salary (equivalent to at least the Irish National Minimum Wage), board and lodging, and Health Insurance Payments. An ICT Permit is valid for 6 months (for a fee of EUR 500) or 2 years. An additional three-year extension is available (EUR 1,500 fee). There are no more extensions available.

Visa requirements Ireland overview

Learn about the visa policies in Ireland and all the ways to obtain a regular or a work visa for Ireland.

Critical Skills Employment Permit


General Employment Permit


Intra-Company Transfer Permit

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Value Added Tax (VAT) in Ireland

Ireland, like all EU member countries, adheres to the EU VAT Directive in terms of VAT compliance. It may, however, continue to set its own standard (upper) VAT rate. The only stipulation is that it is greater than 15%. Suppliers of goods or services VAT registered in Ireland must charge the appropriate VAT rate and collect the tax for payment to the Irish tax authorities via a VAT filing.

VAT Rates

Standard Rate

Group 1083


Reduced Rate Group 1083 13.5%
Second Reduced Rate Group 1083 9%
Flat Rate Compensation % for farmers Group 1083 5.5%
Livestock Rate Group 1083 4.8%
Exempt Rate Group 1083 0%

Value Added Tax


Standard Rate


Reduced Rate



Withholding Tax in Ireland


  • Dividends paid to another company are exempt from withholding tax
  • Dividends paid to a nonresident company or an individual (whether resident or nonresident) are subject to a 25% withholding tax, unless the rate is reduced under a tax treaty or the dividends are exempt from withholding tax under the EU parent-subsidiary directive or under a specific exemption under domestic legislation


  • The withholding tax on annual interest paid to a resident/nonresident company or individual is 20%, unless the tax rate is reduced under a treaty or the interest is exempt from withholding under the EU interest and royalties’ directive or under a specific exemption under domestic legislation.
  • Interest paid to deposit holders of certain Irish banks is subject to withholding tax at 33%, unless an exemption under domestic legislation applies


  • The withholding tax rate is 20% on patent royalties
  • All other royalties are exempt
  • The rate may be reduced under a tax treaty or the payment may be exempt from withholding under the EU interest and royalties’ directive or under a specific exemption under domestic legislation

Withholding Tax Rates in Ireland

Dividends 0%/25%
Interest 0%/20%/33%
Royalties 0%/20%

Withholding Tax







Mandatory Benefits in Ireland

It’s important to understand the legal requirements of hiring employees in Ireland (whether it’s remote or in-office) so that your business remains compliant. As part of Global Expansion’s International PEO and Employer of Record (EOR) solution, we guarantee employees are registered with the appropriate government agency, and that they receive mandatory benefits.

Additionally, all tax deductions associated with the employee are processed at the source, meaning our in-country entity will be responsible for paying all taxes to the authorities on behalf of the new hire.

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Mandatory Benefits overview

Mandatory benefits include social security benefits which cover Jobseeker's Benefit, Illness Benefit, Maternity Benefit, Invalidity Pension, Carer's Benefit and State Pension.

  • Probationary Period

  • Annual Leave

  • Public Holidays

  • Sick Leave

  • Maternity leave

  • Paternity Leave

  • Severance Pay

  • Notice Period

  • Social Security Benefits

Additional common employee benefits in Ireland

  • Personal Retirement Savings Account (PRSA) Facility
  • Life insurance or death-in-service schemes
  • Income protection
  • Medical insurance
  • Dental insurance
  • Pension schemes
  • Subsidized food
  • Additional paid leave
  • Transportation allowance
  • Gym memberships
  • Cycle-to-work schemes

Payroll In Ireland

Here’s everything you need to know to run payroll in Ireland.

Payroll Administration

Payroll taxes are usually managed by a PAYE (Pay As You Earn) system, whereby employers are responsible for deducting tax at source. In other words, employers pay employees' salaries after deducting income tax, Pay Related Social Insurance, Universal Social Charge (USC), and any other expenses that qualify as deductions.

In Ireland, the calendar year serves as the fiscal year. The deadline for filing preliminary income tax returns is October 31st of each year.

Employee Benefits Management

Employers must also supervise and manage employee benefits.
Employers/managers, for example, are responsible for developing an annual leave policy that adheres to the legally mandated annual leave (i.e. 22 days). The vast majority of Irish citizens are entitled to free or extremely low-cost public healthcare. On the other hand, some companies decide to include private healthcare in their employee benefits package.

Payroll Compliance

Payroll compliance refers to following all applicable Irish employment laws and regulations. Mandatory pay slips and minimum wages are two of the most important regulations that employers must follow. Employees are entitled to a written payslip with each salary payment, according to the Payment of Wages Act of 1991. The payslip must include gross wages/salary (income before taxes), PRSI, and any other deductible expenses.

Employers should conduct independent payroll audits to improve compliance. Recognizing and validating the total number of active employees, corroborating and validating accurate payments, reviewing the payroll process, analyzing payroll reports and bank reconciliations, and ensuring regulatory compliance are all part of the payroll audit.

Furthermore, employers must adopt and enforce the Data Protection Act of 2018. In accordance with the aforementioned Act, employers must ensure that any data pertaining to their employees is protected, thereby ensuring privacy protection.

Our Role

Global Expansion’s EOR and international PEO solution can help you run payroll in Ireland with ease. We will not only ensure accurate payroll administration but also ensure regulatory compliance. Hence, this will save you the time and money needed to understand income tax and employment laws and regulations. In just a few clicks, your employees will be onboarded and enrolled into our payroll system in a seamless manner. Additionally, we can invoice for clients locally, i.e. we can enroll any new employee quickly and efficiently, regardless of whether they are an expatriate or an Irish resident.

Payroll Accrual in Ireland

Country Accruals Additional Information







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Employer PRSI contributions are uncapped and levied at a rate of 11.05 percent on all taxable employment income including benefits-in-kind (but excluding certain share related benefits).

In the case of a foreign employee resident but not domiciled in Ireland and not covered by a reciprocal social security agreement, the employee PRSI contribution is payable at 4 percent on all employment income whether or not remitted to Ireland.

Employer Accruals Additional Information

Annual Leave


Maternity Leave


Paternity Leave


Sick Leave




Social Security


Accrued Benefits in Ireland

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees are entitled to severance pay that equals 2 weeks of pay after one year of service (2.74% of annual salary)

Of annual
Vacations %

Employees are normally entitled to 20 days of annual holiday leave each year in addition to public holidays (5.49% of annual salary)

Of annual
Notice %

Employees are entitled to 1 week of notice after one year of service (1.37% of annual salary)

Of annual
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per annum


Why use Global Expansion to hire your employees in Ireland

Establishing a branch office or subsidiary in Ireland can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Irish labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Irish law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Ireland. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything.Our International Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

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